Chapter I Measures of Globalization

Globalization Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Put in simple terms, globalization refers to processes that promote world-wide exchanges of national and cultural resources.

The list of trade indicators 3 Trade as % of GDP Trade Balance as % of GDP World Export Market Shares World Exp. Market Sh. by Type of Goods Geographical Distribution of Export Shares in OECD, Accession c. and Enhanced Engagement countries Geographical Distribution of Export Shares in Services Import Penetration of G & S Merchandise Trade with the Rest of World Intra-Industry Trade High-Tech Merchandise Trade Sensitivity of Trade flows to Price and Income Changes

Globalization Index Measurement of economic globalization focuses on variables such as trade, Foreign Direct Investment (FDI), portfolio investment, and income However, newer indices attempt to measure globalization in more general terms, including variables related to political, social, cultural, and even environmental aspects of globalization One index of globalization is the KOF Index, which measures the three main dimensions of globalization: economic, social, and political 2010 List by the KOF Index of Globalization Rank: 1 Belgium 2Austria 3Netherlands 4Switzerland 5Sweden

KOF Index of globalization KOF Swiss Economic Institute of technology, Zurich Data are available on a yearly basis for 208 countries over the period The KOF Index of Globalization measures the three main dimensions of globalization: economic social and political. In addition to three indices measuring these dimensions, one calculate an overall index of globalization and sub-indices referring to actual economic flows economic restrictions data on information flows data on personal contact and data on cultural proximity.

for self comparison of any or a group countries

Affects of Globalization In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people and the dissemination of knowledge Further, environmental challenges such as climate change, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalization Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment.