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Chapter IMeasures of GlobalizationGlobalizationGlobalizationis the process of international integration arising from the interchange ofworld views, products, ideas, and other aspects ofculture.Put in simple terms, globalization refers to processes that promote world-wide exchanges of national and cultural resources.

The list of trade indicators 3Trade as % of GDPTrade Balance as % of GDPWorld Export Market SharesWorld Exp. Market Sh. by Type of GoodsGeographical Distribution of Export Shares in OECD, Accession c. and Enhanced Engagement countries Geographical Distribution of Export Shares in ServicesImport Penetration of G & SMerchandise Trade with the Rest of WorldIntra-Industry TradeHigh-Tech Merchandise TradeSensitivity of Trade flows to Price and Income ChangesGlobalization IndexMeasurement of economic globalization focuses on variables such astrade,Foreign Direct Investment(FDI),portfolio investment, andincomeHowever, newer indices attempt to measure globalization in more general terms, including variables related to political, social, cultural, and even environmental aspects of globalizationOne index of globalization is the KOF Index, which measures the three main dimensions of globalization: economic, social, and political2010 List by the KOF Index of GlobalizationRank: 1Belgium 2Austria 3Netherlands 4Switzerland 5Sweden KOF Index of globalizationKOF Swiss Economic Institute of technology, ZurichData are available on a yearly basis for 208 countries over the period 1970 - 2009. The KOF Index of Globalization measures the three main dimensions of globalization:economicsocialand political.

In addition to three indices measuring these dimensions, one calculate an overall index of globalization and sub-indices referring to actual economic flowseconomic restrictionsdata on information flowsdata on personal contactand data on cultural proximity.http://globalization.kof.ethz.ch/query/ for self comparison of any or a group countries

Affects of GlobalizationIn 2000, theInternational Monetary Fund(IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people and the dissemination of knowledgeFurther, environmental challenges such asclimate change, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalizationGlobalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment.