After a few different searches on nexuslexus I found an interesting article by Kim Jae-won, a writer for the Korea Times. The article, “Korea ahead of Japan, China in Globalization”, grabbed my attention because of our recent class discussions surrounding Nike’s unethical labor practices that were a by-product of globalization.
In the Nike case, the countries being exploited by Nike were primarily located in Asia. The focus of the case was labor conditions in Indonesia, however other locations (china, japan, etc) were a part of Nikes production processes. The article caught my eye because the title suggested these countries who we just spoke about as being on the losing end of globalization are now utilizing globalization to expand their economies.
The data from the article was from the 2011 Ernst and Young Globalization Index. The index ranks the largest 60 economies based on 20 indicators that are grouped into 5 main categories. The 5 categories are openness to trade, capital movements, exchange of technology and ideas, labor movements, cultural 2011 Ernst and Young Globalization Index. integration. I decided to take a look at the index to see which economies were most globalized. Having just discussed the Nike case, I expected to see well developed nations towards the top and smaller or recently developed nations towards the bottom. The results were quite the opposite.
Hong Kong ranked number one as the most globalized economy in the world. This was somewhat suprising to me because the countries we spoke about as being exploited are not too far away geographically. The categories that boosted their ranking were trade, capital, and culture. All of which they held the highest score relative to other top 15 countries. Other Asian economies in the top 15 included Singapore and Taiwan.
An interesting characteristic of the top 15 countries that I noticed is geographic size of the countries. The top countries were all relatively small countries. Singapore, Denmark, Sweden, Netherlands, Slovakia, Austria all on the list. Perhaps the reasoning is that the limited physical resources in these countries have forced them to utilized globalization to be competitive economies.