Globalization Theme: Impact of globalization and related responses (2) 9 Factors which influence the...

GlobalizationGlobalizationTheme: Impact of Theme: Impact of globalization and related globalization and related responses (2)responses (2)

9 Factors which influence 9 Factors which influence the spread and evenness the spread and evenness of globalizationof globalization

Theme Theme MindMind Map MapDifferent Different perceptions of perceptions of globalizationglobalization

Different Different discourses on discourses on globalizationglobalization

Economic Economic dimension of dimension of globalizationglobalization

Cultural Cultural dimension of dimension of globalizationglobalization

Different Different reactions to reactions to globalizationglobalization

The mainland and The mainland and Hong Kong under Hong Kong under globalizationglobalization

Impact of Impact of economic economic globalizationglobalization

3

12

57

11

48

10

Political Political dimension of dimension of globalizationglobalization

Impact of Impact of political political globalizationglobalization

Factors which Factors which influence the influence the spread and spread and evenness of the evenness of the impact of impact of globalizationglobalization

9Impact of Impact of

globalization and globalization and related responsesrelated responses

6Impact of cultural Impact of cultural globalizationglobalization

Exploration Journey: What factors influence the spread of globalization?

9 Factors which influence the spread and

evenness of globalization

To learn the indices for the measurement of globalization

To think about the degree of globalization of local society and your own degree of globalization

To understand the reasons for the uneven spread of globalization in different countries and among people

To understand the importance of free flow of information and justice

Exploration Exploration

JourneyJourney

What factors influence the spread of globalization?

Exploration Journey: What factors influence the Exploration Journey: What factors influence the spread of globalization?spread of globalization?Exploration Journey: What factors influence the Exploration Journey: What factors influence the spread of globalization?spread of globalization?

The indices for measuring the spread and impact of globalization

How to assess the spread and impact of globalization?

• Globalization is an abstract concept.

• People try to quantify and index the degrees of globalization in different places in order to make comparisons.



The most commonly used indices for measuring the spread and impact of globalization:

Globalization Index

KOF Globalization Index

Ernst & Young Globalization Index

Global Competitiveness Index


Globalization Index• It assesses the four key components of economic

integration, personal contact, Internet connectivity and international political participation. The assessment covers a wide scope of regions.

• In 2007, 72 countries and regions were included in the assessment, representing 88% of the world’s population and 97% of the gross world product.



KOF Globalization Index


• It measures three main dimensions of globalization: economic, social and political.

• The KOF Globalization Index was first released in 2002.

• To better reflect the trend of changes in globalization, the calculation traces back to the 1970s.

• Through the index released annually, the changes in the degree of globalization among countries in the past three decades can be compared.


Ernst & Young Globalization Index


• It assesses the degree of globalization of the world’s top 60 economies with five components: openness of trade, capital movements, exchange of technology and ideas, labour movements and cultural integration.

• To reflect the overall development of all countries in the degree of globalization since 1995.


Global Competitiveness Index


• The World Economic Forum has published the annual Global Competitiveness Report since 1979.

• Since 2005, the Report has calculated all countries’ global competitiveness scores and rankings through the Global Competitiveness Index, which assesses the three main indicators of ‘basic requirements’, ‘efficiency enhancers’, and ‘innovation and sophistication factors’.


The ranking of China in the

Global Competitiveness Index increases

In September 2010, the World Economic Forum published The Global Competitiveness Report 2009-2010, showing that Switzerland ranked first for two consecutive years while Sweden ranked second and the US fourth.

In Asia, Singapore ranked third and Hong Kong 11th while the mainland of China climbed up the ranking from 29th in the previous year to 27th this year.

Source: Adapted from various newspapers.


The ranking of a country can be different on various indices, mainly because



• the samples of the indices are different

• the indicators in the different indices are interpreted or applied differently


Why does the spread of

globalization vary between regions

and among people?


Globalization:Spreads over different regions… Spreads in a region…

The degrees of globalization are different


Factors affecting the spread of globalizationFactors affecting

the spread of globalization

Economic factors• ties between the regional and global economies

•personal financial conditions

Social factors• the level of convenience of the accessibility to foreign information within the region

•the personal condition and ability of accessibility to information

Cultural factors• the degree of the region open to foreign culture

•personal contact to foreign cultural information and products

Government policy factors

•open policies•free flow of information and population mobility

•international political participation


Why does the spread of globalization vary between regions?Factors which influence the spread of globalization between regions

Economic factors:

• Small countries or regions with a sound system generally depend more on international trade and overseas markets to promote economic growth.

• Strong links with overseas markets stimulate the flow of goods, capital and services.

Swiss National Bank and currency


Why does the spread of globalization vary between regions?Factors which influence the spread of globalization between regionsGovernment policy factors:

• Open policies help boost foreign businessmen’s confidence and intention to invest.


• Policies which allow the free flow of information and population mobility also ensure that people can understand the world’s situation and have international interaction.

• Active international political participation reflects that the countries are concerned about international affairs, and are willing to turn their concern into action.


Social factors:

• People’s accessibility to information determines different degrees of globalization in different regions.

• As compared to those in poor regions, people in rich regions have more access to information through the use of information and communication technology. The ‘digital divide’ is thus formed.



Cultural factors:

• If people are open and receptive to foreign cultures, accept foreign cultural products and are willing to promote their local culture overseas, the degree of globalization within a country in the cultural aspect can be enhanced.


Why does the spread of globalization vary among people?Factors which influence the spread of globalization within a region

• The degree of globalization varies among people within the same region.

• A person’s social stratum, entrepreneurship and socio-cultural background give rise to the difference.


Why does the spread of globalization vary among people?Factors which influence the spread of globalization within a region

Social strata:

• People from higher social strata have better financial conditions and can afford technological products. They can receive higher education and can travel overseas for sightseeing or further studies.

• They thus have more opportunities to interact with people in different regions and are affected by different cultures.

The European tourists visit Vietnam


Why does the spread of globalization vary among people?

Factors which influence the spread of globalization within a region

Entrepreneurship:

• more willing to make use of the opportunities brought about by globalization to make profits.

• easily develop associations with the world

• more adapted to globalization


Why does the spread of globalization vary among people?

Factors which influence the spread of globalization within a region

Socio-cultural background:

• In some societies, factors such as sex, age and race influence people’s ties with the world.


• Indigenous inhabitants tend to resist foreign cultures because they have developed a profound and unique indigenous culture in their place of origin.

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