Question

How would you measure the level of globalization of a country or region? Or, what are globalization indicators?

Answer 1

From an economic perspective globalization refers to the interdependence between various countries worldwide which is based on free trade.As a result of globalization developing countries have enjoyed high growth rate owing to the movement of goods labor and capital across international boundaries.Developing countries gained the most from the outsourcing of jobs that occur due to globalization.Globalization can be economic ,political and social.The various indicators of economic globalization are Foreign Direct Investment(FDI),Trade,Foreign Portfolio Investment(FPI). Foreign Direct Investment refer to the investments made by an organization that's located in one country in their business interest in other country FDI can be horizontal or vertical.FDI often tends to grow as globalization grows.Foreign Portfolio Investment refer to the securities held by foreign investors.The effects of social globalization can be measured using indicators like information flow and cultural proximity.The effects of political globalization(cooperation between countries and the growth of the political system) can be measured using indicators like numbr of international treaties signed and participation in the United Nations.