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Globalisation

Simon John English

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Globalisation

Key Driving Forces of Globalisation
- Transnational Corporations (TNCs)
  - large global firms
    - operate in many countries
      - newer markets
      - lower production cost
    - integrate economies worldwide
  - e.g. Microsoft Corporation, Toyota Motor
- Communications
  - technological improvements
    - increased convinience
      - email/telephones/smartphones
  - satellite technology
    - message transmissions
  - optical fibres
    - large carrying capacities
  - Internet
    - information access
      - e.g. services, products
- Transporation
  - technological improvements
    - less time to travel
  - Containerisation
    - reduction in time + cost
    - ships to trucks
  - integrated transportation infrastructure
    - airports/seaports
    - highways/railways
    - easy travelling
What is the impact of globalisation?
- Economic
  - positive
    - increased living standards
      - increased incomes
      - more revenues
        utilised by government
      - free trade
        more foreign goods
        better lifestyle choices
  - negative
    - intense competition
      - lower production cost
      - attract TNCs
    - brain drain
      - highly-skilled people
        high in demand
        employment opportunities
    - widening income gaps
      - developed countries
        rapid income
        manufacturing activities
        prosperity
      - developing countries
        trade restrictions
        lowly-skilled workers
        retrenchment
- Social
  - postive
    - awareness
      - foreign cultures
        through Internet
  - negative
    - lose local culture
      - global brands
        standardise methods
        create homogenous culture
      - spread pop culture
        e.g. rap, MTVs
        cool/hip
        to youths
        lose interest
- Environment
  - negative
    - deforestation
      - economic activities
        mining/forestry
        cultivation/ranching
      - e.g. Indonesia, Brazil
      - lead to:
        soil erosion
        X flora and fauna
        such as in:
        Three Gorges Dam
        Yangtze River, China
        flooding
        water pollution
    - smoke haze
      - "slash-and-burn"
        or forest fires
        esp. ASEAN region
        incur economic loss
        air pollution
        health hazards
    - global warming
      - greenhouse gases
        e.g. CO2
        emmited by:
        aeroplanes
        ships
        factories
        increase in
        average global temperature
  - positive
    - environmental management
      - preservation
        natural resources
        future generations
        generate income
      - conservation
        sustainable energy
        alternative sources
        wind, solar
        geothermal power
Singapore's Strategies
- Economic Cooperation
  - small domestic market
    - expand ties
      - FTAs
        legally binding
      - SEZs
        geographical regions
- Venturing Abroad
  - to find:
    - abundant land
    - lower costs
    - new markets
  - Singapore provides:
    - expertise + capital
      - e.g. SingTel Group
- Nurturing SMEs
  - large % in
    - Singapore businesses
      - support TNCs
        enhance attractiveness
      - job providers
  - face challenges
    - limited resources
    - small markets
    - need assistance schemes
      - SPRING Singapore
      - ASME
      - tax exemptions
- Diversifying Economy
  - centre for:
    - Life Sciences
      - e.g. A*STAR
        genetics studies
        R&D capability
    - manufacturing activities
      - e.g. Seagate
        generate jobs
    - regional hubs
      - education
        strong university sector
        attract talents
      - tourism
        IRs in:
        Sentosa, Marina Bay
        economic growth
        strengthen position
        choice tourist destinations
- Managing Resources
  - Developing People
    - promote local
      - entrepreneurship + technopreneurship
        business ventures
        new products
        through
        amending bankruptcy laws
        giving recognition
      - skill enhancements
        through
        WDA, ESS, SDF
        ensure employability
  - Attracting Foreign Manpower
    - declining birth rate
      - knowledge-based economy
        need to meet:
        social + development needs
        complement Singapore workforce
  - Managing Environment
    - limited land resources
      - proper planning
        high standard facilities
        preserve nature sites
        proper waste disposal
        public education
        environmental protection
        eco-friendly methods
        clean surroundings
    - cooperation with ASEAN
      - signed Kyoto Protocol (2006)
        reduce emission of:
        haze + greenhouse gases