Explain how one prominent index measures global interactions

The phenomena of global interactions is called globalisation. It is defined as ”The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology”. Globalisation is conceptualized as a process that erodes national boundaries, integrates national economies, cultures, technologies and governance and produces complex relations of mutual interdependence. It can be measured by special indexes such as Kerney index or for example, one of the most prominent indexes - KOF. KOF index was introduced in 2002 by Swiss Economy Institute. KOF is useful because it measures three dimensions of globalisation: economic–long distance flows of goods, capital and services, information that market exchanges, political–diffusion of policies of different government, number of embassies, commissions, international organisation that the country is member of, number of UN peace missions country participated in, number of treaties signed between the country with other countries and social– spread of ideas, cultures, traditions, information, images and people, tourism, the amount of international companies (like Mcdonald, IKEA). When the index's is value closer to 100, the higher level of globalisation is. The TOP 5 countries with the highest KOF index are Singapore, Ireland, Luxembourg, Netherlands and Malta.
I have put in bold the key elements that may be included in an answer to this questions. The definitions of the key aspects related to the question should be included, comprehensive explanation of a given issue with all of the aspects of it as well as some illustrative examples like named companies and countries.