MEASURING GLOBAL

INTERACTIONS

Key words: globalization , global interactions,

globalization index, KOF index
 Definitions of globalization
 According to the Oxford English Dictionary,
the word 'globalization' was first employed in
1930, to denote a holistic view of human
experience in education.

 There is no simple definition of globalization,

anda there are no single approach to define it
Several definitions of globalization
 Globalization is the system of interaction among the
countries of the world in order to develop the global
economy.
 Globalization refers to the integration of economics and
societies all over the world.
 -Globalization involves technological, economic, political, and
cultural exchanges made possible largely by advances in
communication, transportation, and infrastructure.

 Globalization describes a process by which regional

economies, societies, and cultures have become
integrated through a global network of communication,
transportation, and trade.
 “Globalization is growing interdependence of
countries worldwide through the increasing
volume and variaty of cross-border
transactions in goods and services and of
international capital flows and through the
more rapid and widespread diffusion of
technology” (IMF)
Why do we measure globalization ?
 “When you can measure what are you speaking
about, and express it in numbers, then you know
something about it. But when you cannot
measure it, when you cannot express it in
numbers your knowledge is of meagre and
unsatisfactory kind” (Kelvin, Lord William Thomson (1824-
1907))

 It allows us to see effects and consequences of

global interactions. (GDP, HDI, Human rights,
gender equality ect.)
 How do we measure it ?
 There are several measures of globalisation
 Folowing two will be discussed

 A.T Kearney globalization index

 KOF index of globalization
 Globalization index (A.T. Kearney)
 Measures changes in 4 main components:
 Economic integration combines data on trade and foreign
direct investment (FDI) inflows and outflows.
 Personal contact tracks international travel and tourism,
international telephone traffic, and cross-border remittances
and personal transfers (including worker remittances,
compensation to employees, and other person-to-person and
nongovernmental transfers).
 Technological connectivity counts the number of Internet
users, Internet hosts, and secure servers through which
encrypted transactions are carried out.
 political engagement includes each country’s memberships in
a variety of representative international organizations,
peacekeeping, international treaties and governmental transfer
2007
2005
 KOF index of globalization
 Introduced in 2002 and have 3 main
components:
 Economic
 Political
 Social
 Personal contacts
 Information flows
 Cultural proximity
 Tasks
 Prepare short presentation about KOF index (5-10 min)
 Identify 10 top and 10 bottom countries according to
KOF index for 2010
 Produce a timeline of the development of globalization
from 1970-2007.
 Compare and explain China's and Norway's KOF Index
of Globalization values from 1970 to 2007

 Resource:
 http://globalization.kof.ethz.ch/
 Study guide