CSULA

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MEASURING
MAY 2005
GLOBALIZATION
Byvairag kothari from 1st year EE

• CSULA
• BUS 515

WALTER ALMORA SAMSON TESFASION
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WHATS GLOBALIZATION?

• Globalization is the increasing
  interconnectedness
• of people and societies
• and the interdependence of economies, governments
  and environments.

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WHY MEASURE GLOBALIZATION?
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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.

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WHY MEASURE GLOBALIZATION?

• Also, it seems to be a relationship between
  globalization and patterns of inequality of
  income.

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HOW MUCH GLOBALIZATIONIS OUT THERE ?
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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
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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.

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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

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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.

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PERSONAL CONTACTS

• The amount of international travel and tourism
• The amount of international telephone traffic
• The amount of Remittances and personal transfers

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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

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TECHNOLOGICAL CONNECTIVITY

• The amount of internet users
• The amount of internet hosts
• The amount of secure servers

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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

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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.

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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

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Internet UsersAs a Percentage of U.S. Population
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