GLOBALIZATION

GLOBALIZATION

1. According to International Monetary Fund (IMF), globalisation is the growing interdependence of countries around the globe, due to increasing variety and volumes of crossborber transactions, and of international capital flows, and through the more rapid and wide spread diffusion of technology.

2. MEASURING GLOBALIZATION

   • KOF INDEX
     • KOF is a Swiss Institute of Business Cycle Research. The overall index covers the economic, social and political dimensions of globalization. It defines globalization to be the “process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information and ideas, capital and goods”.
   • AT KEARNEY
     • AT Kearney is a management consultancy firm that advises large corporations on international competitiveness. Founded in 1926 in the US (Chicago). It assess the extent to which the world’s most populous nations are becoming more or less globalised.
     • THE AT KEARNEY MEASURES 12 VARIABLES BUT ARE SUBDIVIDED 4 CATEGORIES OF GLOBAL INTEGRATION
       • ECONOMIC INTEGRATION
         • Combines data on international trade and foreign direct investment (FDI) inflows and outflows, international travel and Tourism.
       • PERSONAL CONTACT
         • International telephone calls, cross-border remittances, Travel.
       • TECHNOLOGICAL CONNECTIVITY
         • Counts the number of internet users, internet hosts, and secure servers.
       • POLITICAL ENGAGEMENT
         • Includes each country’s membership in a variety of representative international organizations e.g foreign aid, treaties, organizations, and peacekeeping operations.