GLOBALISATION The Netherlands tops the ranking, closely followed by Ireland and Belgium. Therefore the fi rst four ranks remain unchanged to the prior survey year. According to ETH, these four countries are so close together that the differences are hardly perceptible. Switzerland moved up two ranks to fi fth position - one rank above Singapore, which moved down one rank. This index measures the strength of international trade, investment, and income streams in relation to gross domestic product as well as the impact of restrictions on trade and capital movements. The “social dimension” category comprises economic and cultural exchange in its broadest sense. It incorporates international communication including the Internet, TV, and newspapers but also the cultural proximity to the global mainstream based on the number of McDonald’s and Ikea stores or the export and import of books in relation to the GDP. Tourist flows and the number of foreign residents are also included. Social globalisation increased a little stronger in 2013 than in the years before. Austria, Singapore, and Switzerland are the top three in this category. When it comes to political integration Austria WHAT DOES THE INDEX MEASURE? Globalisation comprises worldwide interdependencies on many levels (e.g. economy, politics, culture, communication, etc.) and its various participants (states and institutions as well as societies and individuals). Main drivers of globalisation can be divided into three areas or dimensions, which the Globalisation Index takes into account to calculate its country ranking: The economic dimension includes, among other things, steps to liberalise global trade and investment fl ows. The index measures trade volumes and foreign direct investments as well as protectionist tendencies, such as customs tariffs or restrictions on capital movements. The social dimension takes several aspects into account, such as communication fl ows (via Internet, phone, newspapers), the relevance of tourism in the economy, as well as the share of residents born abroad. The political dimension ultimately illustrates the political collaboration and legal communication - between countries and on an international level. It is measured by the number of embassies abroad, memberships in international organisations, the number of concluded international agreements and participations in existing UN missions. JUNE 2016 41
NEW BUSINESS - EXPORT TODAY 1/2016
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