How can we measure the degree of globalisation in

different countries?

Why are some counties switched on and some switched off?

What factors tell you how good a car is?

What factors tell you how good a car is?

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Jag

Mini

Caterham 7

The Range

What factors tell us how globally connected a country is? • Any ideas how we can measure globalisation?

How can we measure the degree of globalisation in different countries? • Any ideas how we can measure globalisation?

Facebook users

Number of McDonalds

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.

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

Top 10 Countries Netherlands 91.7

Ireland 91.64Belgium 90.51Austria 89.83

Switzerland 87.01Singapore 86.93Denmark 86.44Sweden 85.92Hungary 85.78Canada 85.67

Bottom 10 Sao Tome and Principe 32.25

Cayman Islands 32.18

Burundi 31.87

Tonga 31.12

Comoros 30.71

Lao PDR 30.38

Micronesia, Fed. Sts. 27.99

Equatorial Guinea 27.22

Eritrea 26.47

Solomon Islands 25.1

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

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.

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 engagement2. Technological connectivity3. Personal contact 4. Economic integration

Your Turn: (rank and scale data set to create indices)

• http://globalization.kof.ethz.ch/query/• http://bit.ly/1LhKoRk1. 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.

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.