1. Technological Connectivity Political Engagement
A. T. Kearney Index
Broken into 4 categories
Economic Integration
Personal Contact
Technological Connectivity
Political Engagement

3. A.T. Kearney - Economic
Trade & Foreign Direct Investment (FDI)

4. A. T. Kearney - Personal Telephone traffic Travel
Remittances and Personal Transfers

5. A. T. Kearney - Technological
Internet Users
Internet Hosts
Secures Servers

6. A. T. Kearney – Political International Organizations U.N Peacekeeping
Treaties
Government Transfers

7. A. T Kearney – How is it calculated?
The lowest value is given a 0, the highest is given a 1 and then relative values are given to the ones in between.
FDI, Internet and Telephone Traffic is weighted double
All scores are then summarized

8. A. T Kearney Advantages It covers 96% of worlds GDP
It covers 84% of worlds Population
Allows for comparison between countries
Allows for comparison over time

9. A. T Kearney - Disadvantages
Only 64 Countries are included in the index
Weightings – who decides?
How do you measure cultural trends?

10. A. T Kearney Criticisms
Smaller countries tend to take the top places in the index due to higher proportion/importance of FDI – therefore suggesting an over importance of the size of the country.

11. A. T Kearney - Response
Not statistically significant

12. The KOF Index
Measures globalization on economic, social and political dimensions.
On a scale of Higher values denote greater globalization.
Variations in data are prevented from impacting the overall value by using principal components analysis to determine the weighting of the sub-indices.

13. The 3 indices of the KOF Index
Economic Globalization: long distance flow of goods, capital and services and information.
Subdivided into: 1. Actual flows (eg: FDI and trade as a % of GDP) 2. Restrictions: eg: tariffs and trade barriers)
37% weighting

14. The 3 indices of the KOF Index
Social Globalization: expressed as the spread of ideas, images and people.
3 sub-indices are:
personal contact (eg international telephone call and tourism)
Information flows (eg internet users per 1000 people and trade in newspapers as a % of GDP)
Cultural Proximity (eg number of McD’s)
Weighting: 39%

15. The 3 indices of the KOF Index
Political Globalization: The diffusion of government policies.
Sub-indices:
Membership of international organizations
Number of foreign embassies
Participation in international treaties

16. Points of Note with KOF Index
The KOF Index of 2009 shows that globalization is still on the rise, driven by increased economic and political globalization, while social globalization stagnates.
According to the KOF Index of Globalization 2009, Belgium is the world's most globalised country, although it is not on the top of any of the three dimensions

17. Advantages of KOF
The index allows comparing degree and changes in globalization over a large number of countries and more than 30 years.
The KOF Index of Globalization 2009 is available for 158 countries over the period 1970–2006,
It is calculated on the basis of 24 variables.

18. Examination Questions:
Describe how one prominent index measures global interaction.
Explain how and why globalization may be measured.
Evaluate the effectiveness of this measure in comparing the level of globalization of different countries.