According to International Monetary Fund (IMF),
globalisation is the growing interdependence of
countries around the globe, due to increasing
variety and volumes of crossborber transactions,
and of international capital flows, and through
the more rapid and wide spread diffusion of
technology.
MEASURING
GLOBALIZATION
KOF INDEX
KOF is a Swiss Institute of Business Cycle Research. The overall index covers the economic, social
and political dimensions of globalization. It defines globalization to be the “process of creating
networks of connections among actors at multi-continental distances, mediated through a variety
of flows including people, information and ideas, capital and goods”.
AT KEARNEY
AT Kearney is a management consultancy firm that advises large corporations on international
competitiveness. Founded in 1926 in the US (Chicago). It assess the extent to which the world’s
most populous nations are becoming more or less globalised.
THE AT KEARNEY MEASURES 12 VARIABLES BUT ARE
SUBDIVIDED 4 CATEGORIES OF GLOBAL INTEGRATION
ECONOMIC INTEGRATION
Combines data on international trade and foreign direct
investment (FDI) inflows and outflows, international travel and
Tourism.
PERSONAL CONTACT
International telephone calls, cross-border remittances, Travel.
TECHNOLOGICAL CONNECTIVITY
Counts the number of internet users, internet hosts, and secure servers.
POLITICAL ENGAGEMENT
Includes each country’s membership in a variety of representative international organizations e.g foreign aid,
treaties, organizations, and peacekeeping operations.