THE KOF INDEX

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Restrictions

mean tarrifs

taxes

Import tarrifs

Actual flows

Portfolio investments

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FDL

THE KOF INDEX

Economic Globalisation

The long distance flow of goods, capital and services

Political Globalisation

Number of embassies

number of high commissions

Diffusion of government policies

Social Globalisation

Cultural proximity, McDonald resturants

Personal contacts, telephone traffic

information flow, internet users

Weaknesses

Large number of illegal foreign migrants

Internet is only accessed by those who can afford

Fall in the trade of books and newspapers

Bias in formulating it

Strength

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

Uses data that is readily available

It has been calculated for a very large number of countries

Allows comparisons to be made for countries over a given time