Measuring globalisation

Measuring globalisation

1. KOF Globalisation Index (from 2002).

   • - Measures the extent to which countries are socially, politically and economically linked to others on an annual basis. - Economic globalisation is measure by cross-border trade, investment and money flows. -Social globalisation measured by cross-border contact (telephone calls, letters, tourists and foreign residents) and information flows (internet/TV/Press). Also measures the presence of McDonald’s and IKEA. -Political globalisation measured by foreign embassies in a country, the number of international organisations the country is a member of and trade and other agreements with foreign countries and its participation in UN peacekeeping activities.
     • Examples: 2015 – Ireland was ranked the most globalised country, and the Solomon Islands the least. The USA is less globalised than might be expected but this reflects the large parts of the interior of the USA that are not well connected to the rest of the world.

2. A T Kearney 'Global/World Cities' Index

   • It identifies four main indicators to calculate its Index: Political engagement – a country’s participation in international treaties and organisations, as well as peacekeeping operations. Technological connectivity – the number of internet users, hosts and servers. Personal contact – through telephone calls, travel, remittance payments. Economic integration – the volume of international trade and FDI.
     • Example: 2016 – London, New York, Paris, Tokyo and Hong Kong were ranked as the most successful global cities, reflecting their global political importance as well as their role in the global financial system.