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Chapter I

Measures of Globalization

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Globalization 

Globalization is the process of internationalintegration arising from the interchange of world

views, products, ideas, and other aspects

of culture.

Put in simple terms, globalization refers to

processes that promote world-wide exchanges of 

national and cultural resources.

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The list of trade indicators

3

Trade as % of GDP Trade Balance as % of GDP

World Export Market Shares

World Exp. Market Sh. by Type of Goods

Geographical Distribution of Export Shares in OECD, Accession c. and Enhanced Engagement countries

Geographical Distribution of Export Shares in Services

Import Penetration of G & S

Merchandise Trade with the Rest of World

Intra-Industry Trade

High-Tech Merchandise Trade

Sensitivity of Trade flows to Price and Income Changes

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KOF I d f l b li ti

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KOF Index of globalization

KOF Swiss Economic Institute of technology, Zurich

Data are available on a yearly basis for 208 countries

over the period 1970 - 2009. The KOF Index of Globalization measures the three main dimensions of 

globalization:

economic

social and political.

In addition to three indices measuring these dimensions,

one calculate an overall index of globalization and sub-indices referring to actual economic flows

economic restrictions

data on information flows

data on personal contact

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http://globalization.kof.ethz.ch/query/ for self comparison of any or a group countries

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 Affects of Globalization

In 2000, the International Monetary Fund (IMF) identified

four basic aspects of globalization:

trade and transactions,

capital and investment movements,

migration and

movement of people and the dissemination of 

knowledge

Further, environmental challenges such as

climate change,

cross-boundary water and air pollution,

and over-fishing of the ocean are linked with

globalization

Globalizing processes affect and are affected by

business and work organization,

economics,