10. How can we measure the degree of
globalisation in different countries?
• Whilst basic data can be shown from countries like
GDP, there are much more advanced ways of
showing how globalised countries are.
11. 1. The KOF Globalisation Index
• The KOF Globalisation Index measures how socially,
politically and economically countries are linked.
• The KOF Globalisation Index (2002) measures the
extent to which countries are socially, politically
and economically linked to others.
• The more globalised a country is the more links it
will have in terms of tourism, communication and
trade as well as FDI and socio-political processes.
• Page 163 Lizard Book
12. Top 10 Countries
Netherlands 91.7
Ireland 91.64
Belgium 90.51
Austria 89.83
Switzerland 87.01
Singapore 86.93
Denmark 86.44
Sweden 85.92
Hungary 85.78
Canada 85.67
15. Best at top or not?
• There is also an argument whether it is good or bad
to be at the top or bottom of the globalisation list.
Some people may say it is good because there is
cultural diversity and that you have access to
people and products from around the world.
Others may argue that this is a bad thing because
your culture is being lost and that your country is
possibly becoming more homogenised
16. Weaknesses of KOF
• Although the KOF index can give us an idea of overall globalisation, it has got
some critics, particularly about the accuracy and relevancy of the data.
Criticisms include:
• Measures like international letters per capita are very dated. Most people now
use e-mail because it is quicker and cheaper.
• Anything to do with trade can be hard to measure because many countries do
not know the true size of their informal economy (black market).
• Measuring foreign populations can be hard because of inaccurate record
keeping and illegal immigrants. Countries like the US have millions of
unaccounted immigrants.
• It is hard to calculate the true number of internet users. Many people don't have
a home computer but access the internet at their workplace or in internet cafes.
• Some countries choose to stay neutral and not join international organisations
e.g. Switzerland - this does not mean they are any less globalised.
17. 2. AT Kearney Index
• AT Kearney is a management consultancy firm
based in Chicago that releases a globalisation index
each year.
• It uses four main indicators to measure
globalisation:
1. Political engagement
2. Technological connectivity
3. Personal contact
4. Economic integration
18.
19.
20. Your Turn: (rank and scale data set to create indices)
• http://globalization.kof.ethz.ch/query/
• http://bit.ly/1LhKoRk
1. Go to the website above, select the Query Index tab and
choose table format. Select an index (in groups of 3) (not
economic) choose 2013 and select Asia.
2. Once you have your data set, compile the top ten countries for
that index by transporting the data to Excel, using the filter
tool to rank from highest to lowest.
3. Now you need to consider how to scale that data to compile
your index.
21. Skills – Ranking and scaling
• Ranking. Being able to rank counties in order
according to a set of data. E.g. the highest value for
the KOF Index shows a higher level of globalisation.
• Scaling. If one set of data used is deemed to be
more valuable then it is increased (e.g. doubled) to
reflect that this is more important (e.g. social
globalisation). Scaling can also mean data sets
significance can be reduced.
