1. Indices of Globalisation

2. There are several indices available to meaure the extent of globalisation. We will study the Kearney index in more detail but before we do this, let’s take a look at the KOF index.

3. In addition to the indices measuring the three dimensions, KOF calculates an overall index of Globalisation and sub indices referring to actual economic flows, data on personal contact and data on cultural proximity.

4. The KOF index has three dimensions Economic globalisation - charaterised as long distance flows of goods, capital and services, as well as information and perceptions that accompany market changes Social Globalisatio n - expressed as the spread of ideas, information, images and people Political globalisation - characterised by diffusion of government polices

5. A shrinking world … Which countries are most ‘globalised’? A ‘globalisation index’ measures the interconnectivity of countries based on different kinds of integration, divided by a country’s GNP or its total population …

6. Measures of interconnectivity include: A)Economic: Two dimensions: 1. Actual economic flows and 2. Restrictions on trade and capital B)Political: Uses a number of embassies and high commissions in a country, the number of international organisations to which the country is a member and the number of UN peace missions a country has participated in. Social: Three categries used here: 1: Personal contacts - includes international telecom travel (on going traffic in minutes per subscriber, the degree of tourism (Incoming and outgoing), Government and workers transfers received and paid (as a % of GDP), measures as to what extent countries interact

7. 2. Information flows - includes the number of internet users, cable TV subsribers, number of radios (all per 1000), and international newspapers traded as a % of GDP 3. Cultural proximity - Difficult to grasp but seen as domination of US cultural products, e.g. number of Macdonalds, and Ikea stores.