THE KOF INDEX

Strength

Allows comparisons to be made for countries over a given time

It has been calculated for a very large number of countries

Uses data that is readily available

Makes use of 24 variables covering three main area; political, social and economic

Weaknesses

Bias in formulating it

Fall in the trade of books and newspapers

Internet is only accessed by those who can afford

Large number of illegal foreign migrants

Social Globalisation

information flow, internet users

Personal contacts, telephone traffic

Cultural proximity, McDonald resturants

Political Globalisation

Diffusion of government policies

number of high commissions

Number of embassies

Economic Globalisation

The long distance flow of goods, capital and services

Actual flows

FDL

Trade data

Portfolio investments

Restrictions

Import tarrifs

taxes

mean tarrifs