3.3 Globalisation has affected some places and organisations more than others.

Four Main Indicators to Calculate Index:

• Political Engagement: Country's participation in treaties/peackeeping

• Technological Connectivity: The number of internet users/hosts/services

• Personal Contact: Phone calls/remittance/travel

• Economic Integration: The volumes of international trade and FDI

• Difference from KOF: Holistic indicators/Countries that are political players
• 1. Singapore: Best Scores for trade and FDI
• 2. Switzerland: Best Scores for Phone Contacts

Translated from the German that means 'Business Cycle Research Institute'

Calculated using specific interactions

• Economic Globalisation: Cross border transactions/FDI
• Social Globalisation: Cross border contacts/information/Global affinity eg Ikea
• Political Globalisation: Number of foreign embassies/membership of organisations

• Different indicators are weighted
• Aggregated into one value for each Economic/Social/Political
• 13/15 are European which contrasts GDP

• Promote globalisation through cheap international marketing
• Wealthy TNC'S utilise people in Africa/Asia/ Cheap labour/Flow of goods/integration

1. Investment in developing country

• No minimum wage/ Productive efficiency- high profits like Nike and Adidas

2. Uninformative Product

• release on product- high desire/high demand- greater production/need for products in Asia

3. Destroy Competition

• Huge forms of investment and attract labour/ Dominate- less competition and more success
• Global Companies=Global Links=Flow of goods

4. Support

• New wealth/jobs/taxes/efficient capital flows
• Stronger economies-less isolated/improve infrastructure which attracts FDI/ more countries
• New Technologies- Communication Improved

• Those in favour: Increased Connectedness/Being Switched on (Improves economic development and quality of life)
• Those against globalisation: Corrupt Policies and leads to countries being switched off and left behind (Two Speed World)

Zambia:

• 8th Largest Producer of raw/part processed copper but landlocked
• Relies on good political relations with neighbours to access Tanzanian/Angolan Coasts
• 1970s: TamZam railway using China's investment took Zambia's copper to Tanzanian Coast
• Benguela Rail Link: Carries Copper to Angolan Coast-biggest export but value fallen
• $20 Billion FDI Investment

Tanzania:

• 80% employed in Agriculture/fertile Volcanic soils
• But fluctuating cotton prices means no guarantee of income/GDP fluctuates
• Until 2001: Serious debt problems/HIPC inititiave led to cancellation of debts
• Income gained from growing cotton means investment in infrastructure
• Growing links with India/China/Japan/UAE

India- Switched on (Low Risk and High Returns)

• Government Backing: (Political)
• Opened up India to TNC's bringing in FDI

• English Speaking (Economic/Social)
• 2 million English speaking graduates
• Broadband speeds enables outsourcing of tertiary services like call centres

• Technical Skills and Technology (Economic)
• Vast pool of highly qualified quarternary sector labour in IT/Medicine/Bio-tech
• Hi tech innovation (Bangalore)/ State of the art, 20% less in price than Europe

• Politically Stable and Positive Image: (Political)
• Politically stable reduces risk for TNC's
• India has a good image with Bollywood and Hollywood movies

• Emerging Market and Stable Currency: (Economic)
• Wealth trickles down into Population through multiplier effect- huge consumer market
• Stable exchange rates reduces risk of losses for TNC's

Sub Saharan Africa - Switched off ( High Risk and Low Returns)

• Corruption and Debt (Economic and Political)
• Pervades African Societies
• Politicians and Police abuse authority
• Increases risk of losses and makes it difficult for TNC's to operate
• Weighed down by funded infrastructure in 1970s so had to cut spending to repay IMF

• Politically Unstable and Negative Image (Political)
• Civil Wars and Insurrection
• Many hostile governments and increase risk of losses for TNC's
• Harder for TNC's to gain incentives like Planning Permission for best sites/tax incentives

• Unskilled Labour and Crime: (Social and Economic)
• Although cheap, reduced spending on education mean technically unskilled
• Kidnappings of foreign workers prevalent- high risk to TNC staff

• Weak Market and Unstable Currencies (Economic)
• Wages are not high enough to kick start the multiplier effect-TNC's cannot sell goods
• Financial suicide for TNC's and high risk of losses