25 January 2011

Globalization Index 2010: Malaysia better than BRIC?

Brought to you by "Ernst & Young", the Globalization Index was created to measure the extent to which the 60 largest economies (by GDP) are connecting to the rest of the world. The indicators fall into 5 broad categories:
  1. Openness to trade
  2. Capital movements
  3. Exchange of technology and ideas
  4. Labor movements
  5. Cultural integration
 
How did Malaysia fared in 2010?
Yes... Malaysia perform better by sitting on the 27th place, one spot ahead of US!!! On top of that, we're globalizing better than BRIC (Brazil, Russia, India, China) countries. Of course, the Index has its method of measurements.

Top 10 ranking
How did the Index measures?
The Index measures "relative" rather than "absolute" globalization. This means that an economy's trade, investment, technology, labor and cultural integration with other economies is measured relative to its GDP rather than by the absolute value of these elements being exchanged.

As a result, smaller economies (like Hong Kong and Singapore) that depend on international integration will tend to have a high level of globalization, while larger economies (like US and BRIC) that can rely on a big domestic market will tend to have a lower level, even though the total amounts exchanged internationally involved may be much greater.

The Index, therefore, reflects the degree to which the global integration of an economy is observable or experienced from within that economy.

Key highlights of Globalization Index 2010:
Once again, technology remains the key driver behind deepening globalization. In the emerging markets, the rapid adoption of the internet and mobile technologies is a powerful engine behind the greater integration of trade, capital, culture and labor. And, in some cases, it leapfrogging the West in terms of their infrastructure.

Click here to view the full list of the Globalization Index 2010

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