Singapore And Singapore: A Comparative Advantages Of Singapore

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Comparative advantage means that an industry, firm, country or individual are able to produce goods and services at a lower opportunity cost than others which are also producing the same goods and services. Also, in order to be profitable, the number in exports must be higher than the number in import. From the diagram we seen above, Singapore is seen to have a comparative advantage in some services. The services are Transport, Financial, business management, maintenance & Repair and Advertising & Market Research, etc. These export services to other countries improve the balance of payment. On the other side, Singapore is seen to have a comparative disadvantage in some services. The services are Travel, Telecommunications, Computer & Information, …show more content…

Singapore acts as a role of an entrepôt for Southeast Asia due to their strategic location, port infrastructure and highly skilled workforce. Singapore also purchases raw materials from other country and then refine the product into a better product to re-export. The reason for Singapore to do this is because of the lack of human and natural resources.

ASEAN was formed to promote economic growth, understand each other cultures and to enhance and sustain own country’s living standards so as to allow their citizens to maximize their full potential. These countries will also arrange a meeting regularly so as to discuss on how to improve on ASEAN Trade and also with more interaction, they are able to synchronize among them and it has the benefit to ensure that civil peace are always in place.
There are many possible benefits of the formation of ASEAN Free Trade Area …show more content…

Worst still, they might resort to forced labour or child abusive labour.
Fourth, the formation of AFTA has agitated deep-rooted industries or factories which are already vulnerable to global competition. This trade will make their wages unable to compete with productivity of labour and also income differences will lead to an unexpected problems for the industries or factories.
Lastly, the comparative advantage of a country in ASEAN is being treated as a cheap trading product instead of being taken as an advantage for the country if they were to stand alone. Citizens in the country will have more choices in the domestic markets due to the low imported tariffs imposed and will have a great impact on their product which have comparative advantage.

The health of the Singapore economy based on the analysis of its positive balance of payment is very favourable because it is shown in part (a) that Singapore economy is growing at a high rate and is assured of economic growth. Singapore has very few debts and these debts will not hinder further plans as the income generated will be more focused on research and development sector rather than repayment of debts. Additional, Singapore’s Gross Domestic Product (GDP) is high and this means that the production activities are also high and the people within

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