The Globalization Index 2011 shows the extent to which the world's largest countries by GDP are connecting to the global economy. The Index uses 20 separate indicators that capture the key aspects of cross-border integration of business.
The Globalization Index —
indicators, sources and weightings
These indicators fall into five broad categories:
- Openness to trade
- Capital movements
- Labor movements
- Exchange of technology and ideas
- Cultural integration
These factors have been weighted (ranging from 17% to 22% for each) based on the significance placed upon each factor by 520 surveyed company executives doing international business.
The Index measures “relative” rather than “absolute” globalization. This means that a country's trade, investment, labor, technology and cultural integration with other countries is measured relative to its GDP rather than by the absolute value of these elements being exchanged.