HL+ext+1+measuring



1. Measuring global interactions

Describe and evaluate one of the following two globalization indices: the AT Kearney index or the KOF index, as a measure of global interaction. Describe how the globalization index may be represented spatially.

Discuss the spatial pattern of global interactions through the mapping of core areas at the focus of interaction (network hubs/nodes), the peripheries and areas relatively unaffected by these interactions.

Stark differences are emerging between regions with some regions pulling ahead and reaching new levels of development while others are falling behind. These include: North-south divide
 * Developed-developing divide
 * Core-periphery divide
 * Urban-rural divide

Core / Periphery Division of the World The world can be perceived as a core / periphery dichotomy where core countries are characterized by high levels of development, a capacity at innovation and a convergence of trade flows. The core has a level of dominance over the periphery which is reflected in trade and transportation. Accessibility is higher within the elements of the core than within the periphery. Most of high level economic activities and innovations are located at the core, with the periphery subjugated to those processes at various levels. This pattern was particularly prevalent during the colonial era where the development of transport systems in the developing world mainly favoured the accessibility of core countries to the resources and markets of the periphery, a situation that endured until the 1960s and 1970s. The semi-periphery has a higher level of autonomy and has been the object of significant processes of economic development (China, Brazil, Malaysia, etc.). Concomitantly, the accessibility of the semi-periphery improved, permitting the exploitation of its comparative advantages in labour and resources. Recent changes in globalization, particularly industrial growth in developing countries, are challenging this representation.

Three major poles, North America, Western Europe and East Asia, dominate the global economy. For North America, this involves Latin American nations, closely linked to the American economy. Africa, Eastern Europe and Russia (with many of the former Soviet Republics) are within the sphere of influence of Western Europe. JAKOTA (Japan, Korean and Taiwan) represents the main pole of Pacific Asia, including China and the other newly industrializing economies of the region (Singapore, Malaysia, Thailand). Several regions, such as Oceania, South Asia and the Middle East are not within a specific area of influence, but contribute significantly to global trade (petroleum for the Middle East, minerals and food for Australia).
 * Poles of the Global Economy**

Classification was proposed by the United Nations and divides economies in five major classes: economic opportunities. Any growth is accompanied by strong growth of raw materials, products and services and their related global flows ||
 * Classify base on levels of development**
 * Underdeveloped || Characterized by low levels of income, industrialization and literacy. They are the least involved in the global economy with exports dominated by raw materials. ||
 * Developing || Characterized by a very heterogeneous group of nations that have seen various levels of improvements in the welfare of their populations. They include former socialist economies (Russia and Eastern Europe), North African and many Latin American countries. ||
 * Newly industrializing || Characterized by fast processes of industrialization and integration to the global economy where manufacturing goods account for more than 25% of the GDP and more than 50% of exports. There are however strong disparities within this group as Latin American (Mexico, Brazil and Argentina) growth is little compared with the growth taking place in East and Southeast Asia, especially China. ||
 * Advanced || Characterized by a high level of economic development. These nations are at the forefront of the global economy. ||
 * Rent || Countries that derive the majority of their incomes from oil exports are labelled as rent economies, such as Saudi Arabia. Incomes are artificially high and subject to the fluctuations of oil prices. Several nations such as Algeria, Nigeria, Venezuela and Iraq are significant oil exporters, but they have a more diversified economy. ||
 * Continent-sized countries || India and China are special categories on their own. They have low incomes but the last decade, especially for China, has brought significant