Measuring globalization by u0m9yC

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									                                          MAY
                                           200
                                             5



            MEASURING
          GLOBALIZATION
          By:vairag kothari
            from : 1st year EE
CSULA                              WALTER ALMORA
BUS 515                          SAMSON TESFASION
      WHAT’S GLOBALIZATION?


     Globalization is the increasing
          interconnectedness
        of people and societies
and the interdependence of economies,
   governments and environments.
WHY MEASURE GLOBALIZATION?
      WHY MEASURE GLOBALIZATION?


There appear to be
a direct relationship
among civil
liberties, more
political rights,
lower levels of
corruption and ...
the level of
globalization.
WHY MEASURE GLOBALIZATION?




         Also, it seems to be a
         relationship between
         globalization and
         patterns of inequality
         of income.
HOW MUCH GLOBALIZATION
     IS OUT THERE ?
                            HOW MUCH GLOBALIZATION
                                 IS OUT THERE ?

         “Trade flows are not
          significantly higher
      than they were prior to
        1914 if one measures
      them against GDP, but
          loom much larger if
           they are compared
            against industrial
                 production.“
                                    D. Rodrik, 1998
“Symposium on Globalization in Perspective: An Introduction” Dany Rodrik – 1998 – Journal of Economics Perspectives
          HOW TO MEASURE
          GLOBALIZATION?

 There is not a clear-cut method
  for measuring the extent of
  globalization.

 Researchers have used a variety
  of references to provide an idea
  on globalization and their impact.
   FOREING POLICY MAGAZINE 2005


The FOREING POLICY Globalization
Index measures 12 variables and
group them in 4 categories:
  1.   Economic Integration
  2.   Personal contacts
  3.   Political engagements
  4.   Technological connectivity
         ECONOMIC & FINANCIAL
             INTEGRATION

 Economic integration can be measured
  by the volume of Capital Flow, Trade, or
  Gross Domestic Product (GDP)
  between countries.

 Financial Integration can be measured
  by the Amount of Foreign Direct
  Investment, or, the Ratio of Foreign
  Capital stock to GDP.
        PERSONAL CONTACTS


 The amount of international travel
  and tourism

 The amount of international
  telephone traffic

 The amount of Remittances and
  personal transfers
        POLITICAL ENGAGEMENT


 The amount of membership in
  international organizations
 The amount of personal and financial
  contribution to UN peace keeping
  missions
 The amount of international treaties
  ratifications
 The amount of governmental
  transfers
TECHNOLOGICAL CONNECTIVITY



 The amount of internet users

 The amount of internet hosts

 The amount of secure servers
         Latest 2003 Actual Results


1.   Singapore rank top in political
     engagement due to 41% increase
     in financial contribution to UN
     peace keeping mission
2.   Also Singapore rank first place in
     foreign investment by signing
     bilateral free trade agreement
     with United States
         2003 Results continued…

3.   Large nations with large
     population and domestic market
     (e.g. US) usually rank low in
     foreign trade and investment
     because they are less dependent
     on them nevertheless, United
     States jumped from 7th to 4th
     became the first large country in
     top five.
         2003 Results continued…


4.   United States also rank first in
     technology connectivity basket
     due to increased number of
     internet hosts and number of
     secure servers
5.   Due to SARS epidemic tourism in
     Asia dropped by almost 50% in
     2003
                Internet Users
      As a Percentage of U.S. Population
100

 90

 80

 70

 60

 50                                59
                            55
 40                  50
 30
              44
       36
 20

 10

  0
       1999   2000   2001   2002   2003

								
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