What do Internationalisation Indices Measure?

Abstract

The paper analyses two different indicators of internationalisation. The transnationality index developed by the UNCTAD links the internationalisation process to the dichotomy home versus foreign production. The network spread index considers internationalisation in relation to the number of countries in which the companies have production facilities. Following an introduction to the two indicators, estimates are considered and comparisons made at the level of countries and industries. More detailed data are developed for nine of the largest UK TNCs on both indicators. An analysis of meaning and significance and of the relative advantages of the two indicators follows.internationalisation indices