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MEASURING

MAY 2005. MEASURING. GLOBALIZATION. CSULA BUS 515. By:vairag kothari from : 1 st year EE. WALTER ALMORA SAMSON TESFASION . WHAT’S GLOBALIZATION?. Globalization is the increasing interconnectedness of people and societies

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MEASURING

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  1. MAY 2005 MEASURING GLOBALIZATION CSULA BUS 515 By:vairag kothari from : 1st year EE WALTER ALMORA SAMSON TESFASION

  2. WHAT’S GLOBALIZATION? Globalization is the increasing interconnectedness of people and societies and the interdependence of economies, governments and environments.

  3. WHY MEASURE GLOBALIZATION?

  4. 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.

  5. WHY MEASURE GLOBALIZATION? Also, it seems to be a relationship between globalization and patterns of inequality of income.

  6. HOW MUCH GLOBALIZATIONIS OUT THERE ?

  7. HOW MUCH GLOBALIZATIONIS 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

  8. 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.

  9. FOREING POLICY MAGAZINE 2005 The FOREING POLICY Globalization Index measures 12 variables and group them in 4 categories: • Economic Integration • Personal contacts • Political engagements • Technological connectivity

  10. 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.

  11. PERSONAL CONTACTS • The amount of international travel and tourism • The amount of international telephone traffic • The amount of Remittances and personal transfers

  12. 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

  13. TECHNOLOGICAL CONNECTIVITY • The amount of internet users • The amount of internet hosts • The amount of secure servers

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

  15. 2003 Results continued… • 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.

  16. 2003 Results continued… • United States also rank first in technology connectivity basket due to increased number of internet hosts and number of secure servers • Due to SARS epidemic tourism in Asia dropped by almost 50% in 2003

  17. Internet UsersAs a Percentage of U.S. Population

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