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What is globalisation and how is it measured?

Edexcel IAL Geography · WGE01 Global Challenges

Globalisation is an old process that has accelerated dramatically. It involves widening and deepening flows between places, and its degree can be measured with indices such as the KOF and AT Kearney indices.

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Flows and connections

Globalisation is the growing interconnection of places through flows of:

commodities and goods (trade)
capital (investment, loans, remittances)
information (internet, media, ideas)
people: migrants and tourists.

Widening: more places are connected. Deepening: the connections become more intense and important to daily life. Long-distance trade is ancient, and colonial empires created global trade networks, but since the late 20th century the process has accelerated.

Measuring globalisation

KOF Globalisation Index (ETH Zurich): combines economic, social and political globalisation. In the 2018 report (data to 2016) Switzerland ranked first, followed by the Netherlands, Belgium, Sweden and the UK; the United States was 23rd; Comoros, Afghanistan and Guinea-Bissau were the least globalised of 195 countries (swissinfo).
AT Kearney (Foreign Policy) index: combined measures of economic links, personal contact, technology and political engagement.

Small, open, wealthy economies often score highly because trade and foreign investment are large relative to their size.

Skill (8): large data sets, indices and scaling

Indices combine variables measured in different units by scaling each to a common range, often 0 to 100:

scaled value = (value - minimum) / (maximum - minimum) x 100

Then average or weight the scaled variables. Limitations: the choice of variables and weights is subjective; data may be missing for poorer countries; an index can hide inequality within a country. In June 2025 a small minority of candidates wrongly treated the KOF index as a development measure.

Worked example

Practice data (invented): trade as % of GDP ranges from 20 (minimum) to 220 (maximum) across a data set. Scale a country with 120.

(120 - 20) / (220 - 20) x 100
= 100 / 200 x 100

Answer: 50 on a 0 to 100 scale.

Key idea: Globalisation: widening and deepening flows of goods, capital, information and people. KOF: economic, social, political. Scaling: (value - min)/(max - min) x 100.

Check yourself

Practice data (invented): internet users per 100 people range from 5 to 95. Scale a country with 59 on a 0 to 100 scale.
Show answer
60. (59 - 5) / (95 - 5) x 100 = 60.
Practice data (invented): a country scores 80 for economic, 60 for social and 40 for political globalisation. With weights of 0.5, 0.3 and 0.2, find its overall index.
Show answer
66. 40 + 18 + 8 = 66.
The KOF Globalisation Index combines which three dimensions?
- Physical, human and environmental
- Birth, death and migration
- Primary, secondary and tertiary
- Economic, social and political
Show answer
Economic, social and political. KOF measures economic, social and political globalisation.
Which is an example of a capital flow?
- Foreign direct investment by a TNC in a new factory
- A tourist visiting a museum
- A video call between friends
- Exporting coffee beans
Show answer
Foreign direct investment by a TNC in a new factory. Capital means money for investment.
Deepening globalisation means that
- more countries join the network
- oceans become deeper
- connections become more intense and important to everyday life
- fewer goods are traded
Show answer
connections become more intense and important to everyday life. Widening adds places; deepening intensifies links.
Which is a limitation of globalisation indices?
- The choice and weighting of variables is subjective
- They use numbers
- They cover too many countries
- They measure flows
Show answer
The choice and weighting of variables is subjective. Different choices produce different rankings.
Suggest why a small country such as Switzerland ranks among the most globalised.
Show answer
It has a small domestic market so trade and foreign investment are large relative to its economy; it hosts many TNC headquarters and international organisations and has high levels of international travel and communication.. Trade and investment are large relative to a small, open economy; many international links.

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Last updated 8 November 2026. Spotted a mistake? Tell us.