Measuring Global Interactions
Global Participation
Describe and evaluate one of the following two globalization indices: The AT Kearney index or the KOF index, as a measure of global interaction.
Globalization
The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of capital.
KOF Index
KOF is a leading Swiss economic think tank that also releases a yearly globalization index.
Economic Globalization
Social Globalization
Describe how the globalization index may be represented spatially.
Describe and evaluate one of the following two globalization indices: The AT Kearney index or the KOF index, as a measure of global interaction.
Globalization
The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of capital.
KOF Index
KOF is a leading Swiss economic think tank that also releases a yearly globalization index.
Economic Globalization
- Trade (percentage of GDP)
- Foreign Direct Investment
- Portfolio investment
- Income payment to foreign nationals
- Hidden important barriers
- Mean tariff rate
- Taxes on international trade
- Capital account restrictions
Social Globalization
- Telephone traffic
- Transfers
- International tourism
- Foreign population
- International letters
- Internet users
- Television
- Trade in newspaper
- Number of McDonald’s Restaurants
- Number if Ikea
- Trade in books
- Embassies in a country
- Membership in international organizations
- International Treaties
- Participation in U.N. security council meetings
Describe how the globalization index may be represented spatially.
Global Core and Periphery
Discuss the spatial pattern of global interactions through the mapping of core areas at the focus of interaction (network hubs/nodes), the peripheries and areas relatively unaffected by these interactions.
Characteristics of Core
Characteristics of Periphery
Discuss the spatial pattern of global interactions through the mapping of core areas at the focus of interaction (network hubs/nodes), the peripheries and areas relatively unaffected by these interactions.
Characteristics of Core
- High foreign direct investment (FDI)
- High employment and high wages
- High levels of communications and technology e.g. internet and mobile network
- High literacy and skills rates
- Net migration gain
- Larger secondary and tertiary economy
- Good electricity, water and gas supplies
- Good quality housing
- Wide variety of entertainment e.g. cinemas, museums, etc.
- Cultural diversity (sport, music, religion, language, food, dress, etc.)
- Large racial mix
- Coastline
- Available resources e.g. coal in Australia
- Close to other developed countries e.g. Europe and North America
- Stable climate (not to hot or too cold) e.g. Western Europe
- Areas of flat land that make construction easy e.g. East coast of US and SE of England
- Good transport links e.g. International airport (London Heathrow)
- Good education system. Renowned academic and research universities e.g. Cambridge and Oxford in the UK and the Ivy League universities in the US
- Good medical care so that there are low death rates and high life expectancy - free from major diseases
- Good international relations e.g. member of international organizations like NATO and OECD
- Stable democracy free from conflict
- Government policy e.g the development on enterprise zones or export processing zones that encourage FDI
Characteristics of Periphery
- Disinvestment
- Net migration loss
- Unemployment
- Low levels of literacy and small skills base
- Large primary sector economy - maybe a large number of subsistence farmers
- Water and electricity shortages - possible reliance on fuelwood
- Poor levels of communications
- Poor housing - often informal settlements
- Traditional lifestyle/culture (lack of cultural mix)
- Little international cultural or sporting facilities
- Landlocked (no coastline) e.g. Rwanda and Uganda
- Mountainous e.g. Bolivia and Nepal
- Very hot (arid desert environment) e.g. Mali
- Very cold (permafrost)
- Infertile land e.g. The Sahel
- No resources
- Regular suffer from devastating natural disasters e.g. Bangladesh and flooding or famine in East Africa
- Poor education system often resulting in high levels of illiteracy.
- Poor healthcare leading to high death rates and low life expectancy. Possibly high rates of diseases like HIV and malaria.
- Lack of democracy and kleptocratic government. No accountability for government officials
- Large levels of debt
- Frequent conflicts e.g. Somalia
- Possible exploitation from previous colonial power
World Cities (Global Cities or Alpha Cities)
As well as core regions developing, there has also been the development of core global cities. These cities have become known as world cities or global cities or alpha cities. London and New York are generally regarded to be the two most important global cities, followed by cities like Paris, Shanghai, Hong-Kong, Tokyo, Sydney and Singapore. Although world cities control a disproportionate amount of world trade, there classification can vary, but may include some of the following:
Economic
Stock exchanges, corporate headquarters, high cost of living, financial transactions
Political
World influence, expatriate communities, headquarters of international organisations, capital cities
Cultural
Familiarity, host of sporting and cultural events, center of education and tourism, variety of religions
Infrastructural
International airport, mass transit system (underground/subway), quality infrastructure and amenities
As well as core regions developing, there has also been the development of core global cities. These cities have become known as world cities or global cities or alpha cities. London and New York are generally regarded to be the two most important global cities, followed by cities like Paris, Shanghai, Hong-Kong, Tokyo, Sydney and Singapore. Although world cities control a disproportionate amount of world trade, there classification can vary, but may include some of the following:
Economic
Stock exchanges, corporate headquarters, high cost of living, financial transactions
Political
World influence, expatriate communities, headquarters of international organisations, capital cities
Cultural
Familiarity, host of sporting and cultural events, center of education and tourism, variety of religions
Infrastructural
International airport, mass transit system (underground/subway), quality infrastructure and amenities