Globalisation

Globalisation

1. The KOF Index

   • Economic Globalisation
     • This is characterized by two dimensions: Actual Flows and Restrictions
       • This includes datas on trade, FDI and Portfolio investments
       • Restrictions refers to restrictions on trade and capital using taxes and import tariffs
   • Political Globalisation
     • This looks at the number of embassies in the country, the high commissions, the number of international organization (UN,WHO,WTO) that the country is a member of.
   • Social Globalisation
     • Personal Contacts
       • This captures the direct interaction among people living in different countries. This looks at telephone traffic, transfers, foreign population and International letters
     • Information Flows
       • Looks at the number of International newspapers in the country, the number of internet hosts and users and the share of households with televisions sets.
     • Cultural Proximity
       • Cultural proximity looks at how many Hollywood movies are shown in the country and the number of English songs on the national hit list.

2. According to the IMF, Globalisation os defined at the growing interdependence of countries through an increasing variety and volume of cross-border transaction of goods and services and of international capital flows and through a more rapid and widespread diffusion of goods and services.

3. How can we measure globalisation