Global Systems and Global Governance Flashcards
What is the global village?
A modern term suggesting the characteristics of a village are manifested through globalisation.
Name an example of the global village.
Shopping online globally
Who suggested the global village and where?
Marshall McLuhan in his book ‘Understanding Media’ (1967)
What is cultural imperialism?
The fact of the culture of a large and powerful country, organisation etc. having a great influence on another less powerful country.
What is Americanisation?
The action of making a person or thing American in character or personality.
What is KOF index?
The KOF Index of Globalization (2011) is a ranking of the most global countries based on three dimensions of globalization: economic globalization, social globalization and political globalization.
How is the KOF index calculated?
It is on a scale of 1-100. Higher values denote greater globalisation.
How does the KOF index analyse economic globalisation?
Long distance flow of good, capital and services and information. This can be subdivided into;
Actual flows (e.g FDI and trade as a % of GDP)
Restrictions (e.g tariffs and trade barriers)
Economic globalisation is said to have a 37% weighting.
How does the KOF index analyse social globalisation?
Expressed as the spread of ideas, images and people. There are sub-indices;
Personal contact (e.g. international telephone calls and tourism)
Information flows (e.g. internet users per 1000 people and trade in newspapers as a % of GDP)
Cultural proximity (e.g. number of McD’s)
Social globalisation is said to have a weighting of 39%
How does the KOF index analyse politicial globalisation?
The diffusion of government policies. There are sub-indices;
Memberships of international organizations (e.g. united nations)
Number of foreign embassies (e.g Danish Embassy in New Delhi, India)
Participation in international treaties (e.g. the UK agreed to the Baghdad Pact.)
Political globalisation is said to have a weighting of 24%
What are some advantages of KOF?
Comparable; The index allows comparing degree and changes in globalization over many countries and more than 30 years.
Availability; The KOF Index of Globalization 2009 is available for 158 countries over the period 1970–2006.
Considers many; It is calculated based on 24 variables.
What are some disadvantages of KOF?
Smaller countries seem to be over-represented at the top of the rankings suggesting there may be some bias in how the final values are calculated. E.g. distances to neighbouring countries are short making it easier to engage in foreign travel (e.g. Belgium), or there are few places to visit at home (Luxembourg).
Trade in books and newspapers is falling in many places due to the rise of e-books and online news sites. Also, in some countries people may access books and newspapers through libraries. This is not reflected in the KOF data.
Internet users is based on people with access to the Internet, but how can this be found accurate (i.e Internet cafes vs home connections).
Trade calculations often ignore the informal economy which can account for a large proportion of actual trade (e.g. Mumbai, India).
Many countries have large numbers of illegal foreign migrants. They are not counted in the KOF.
What are some criticisms of KOF?
Some countries choose to be neutral and do not participate in UN peacekeeping missions or other international organisations as a result. This does not mean they are less globalized than those that do.
By publishing ranking KOF seem to be implying that those at the top are ‘better’ than those at the bottom. This is not necessarily true as globalisation brings problems as well as benefits to countries.
What is the Kearney index?
A.T. Kearney seeks to identify emerging trends in the data and illuminate current topics of interest. It can be broken down into 4 categories Economic Integration, Personal Contact, Technological Connectivity, Political Engagement
The Global Cities Index (By AT Kearney) examines the current performance of cities
How is the Kearney index 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
How does the Kearney index analyse economic globalisation?
Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country.
e.g. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India.
What is FDI?
Foreign direct investment
How does the Kearney index measure social globalisation?
PERSONAL INCLUDES;
Telephone traffic
Travel
Remittances (an amount of money that you send to someone) and Personal Transfers
TECHNOLOGICAL INCLUDES;
Internet Users
Internet Hosts
Secures Servers
How does the Kearney index measure political globalisation?
International Organizations (e.g. united nations)
U.N Peacekeeping (UNP helps countries torn by conflict create conditions for lasting peace)
Treaties (e.g. the Treaty of Paris was signed in 1783 between Great Britain on one side and America and its allies on the other)
Government transfers (for e.g. welfare financial aid)
What are some advantages of the Kearney index?
Coverage;
It covers 96% of worlds GDP
It covers 84% of world’s Population
Comparable;
Allows for comparison between countries
Allows for comparison over time
What are some disadvantages of the Kearney index?
Only 64 Countries are included in the index- not inclusive
Weightings – who decides? May be subjective
How do you measure cultural trends? Something as complex cannot be reduced to a statistic
What are some criticisms of the Kearney index?
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.
In the 2009 KOF index, what was the most globalised country?
Belgium, despite not being on top of any of the three dimensions.
What is repatriation of profits?
TNCs operating in foreign countries will normally send any profits made back to the TNC headquarters. This repatriation of profits is sometimes known as economic leakage.