Globalisation involves the removal of trade barriers and the increasing integration between economies. It features a high degree of transfer of labour, capital, intellectual capital and ideas as well as financial resources and technology. Singapore is a country that has been largely impacted by the effect of globalisation. Globalisation has strongly influenced Singapore as it has increased world trade, strengthened economic integration, lowered costs and raised productivity. Specifically, the effect international convergence, trade, investment and transnational corporations as well as economic growth and development, quality of life and the distribution of income and wealth.
Singapore is located in the South East Asian Region and is one of the five founding members of the Association of South East Asian Nations (ASEAN). It is a newly industrialised economy with a GDP of $274.7 billion and 1.8% GDP growth. The unemployment rate here is currently at 1.8% and its inflation rate is 4.5%. Singapore is in the 14th largest exporter and the 15th largest importer in the world. The country does not hold many natural resources due to the limited amount of land area, relying largely on imports. Its major trading partners are United States, Hong Kong, China, Malaysia, Australia, Thailand, Germany, Indonesia and Japan. Its major exports are machinery and equipment, mineral fuels and lubricants, petroleum oils, electronic components, pharmaceuticals and consumer goods. Its major imports are machinery and equipment, crude oil, chemicals, motor vehicles, iron/steel, electronic components and textile yarns/fabrics. Figures 1-4 demonstrate the imports and exports by commodity.
Globalisation has increased international convergence in Singapore a...
... middle of paper ...
...ranks-second-on-Globalization-Index-2012
http://nationalpridesg.wordpress.com/2012/08/09/the-impact-of-globalisation-on-singapore-identity-national-pride/
http://www.fas.nus.edu.sg/ecs/scape/doc/GLOBALISATION-st-23sep-pA26.pdf
http://www.beerkens.info/files/ANZCIES.pdf
http://www.sgs.gov.sg/The-SGS-Market/Fiscal-Policy.aspx
http://archive.treasury.gov.au/documents/710/HTML/docshell.asp?URL=05.asp
http://www.sgs.gov.sg/The-SGS-Market/Fiscal-Policy.aspx
www.newint.com
http://www.abc.net.au/news/business/
http://www.singstat.gov.sg/publications/publications_and_papers/reference/monthly_digest/mdsoct13.pdf
http://www.mfa.gov.sg/content/mfa/overseasmission/washington/about_singapore/education_in_singapore.html
http://www.guidemesingapore.com/relocation/introduction/quality-of-life-in-singapore
http://app.mewr.gov.sg/web/Contents/Contents.aspx?ContId=1342
Globalisation, in the simplest sense, is economic integration between countries and is represented by the fact that national resources are now becoming mobile in the international market. Globalisation sees: an increase in trade of goods & services through the reduction of trade barriers; an increase in financial flows through the deregulation of financial institutions and markets and floating of currency; an increase in labour
Singapore has the limited place to build the manufacturing factory which is a threat for Singapore to raise the market place. The inventory of clothes that they produced is not much as fast fashion brand such as H&M and Forever 21 so the cost of labour cost will more expensive. Besides, rising labour cost is the reason why Singapore retailers has only do seasonal discount.
Globalization refers to an ongoing process of economies and social integration of economies around the world (Thangavelu, 2010). The key drivers of globalization are trade and the movement of the capital and people. Thangavelu(2010) mentioned that Singapore has effectively used the drivers of globalization to develop its economy and integrate to the global marketplace since it independence. Singapore was able to achieve strong and continuous economic growth by opening up the immigrants to increase the domestic population, attracting foreign direct investment and adopting an export-driven economic strategy.
Globalization becomes important today because increasing in depending to the world. Globalization can be determined as increasing in trade and exchange in open economy, integrated and borderless international economy (Intriligator, 2003). Globalization is often used to refer to economic globalization. The integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Besides that, globalization also can be defined as process of greater interdependence among countries and their citizens. It consists of increased integration of product and resource markets across nations via trade, immigration and foreign investment-that is via international flows of goods and services, of people and of investment such as equipment, factories, stocks and bonds. It also includes non-economic elements such as culture and the environment.
One caveat to the strength of Singapore’s is the amount of foreign investments there. Its economy is not as diverse as the United States. Recently, the government has invested in diversifying the economy. As a result, the tourism, pharmaceutical, and many other industries have flourished. However, competition among financial institutions, particularly in banking, is significant and should be considered as it is one of Singapore’s core elements in its economy. PESTLE analysis also reflects this and others such as labor shortages, rising labor costs and a decline in
There are examples of bilateral trade of Indonesia with several countries, such as United States, Australia, Japan, China, ASEAN,and the European Union. The relations between Indonesia and the U.S. is important
Singapore, or the Republic of Singapore, is an island nation located just off the southern coast of Malaysia. This southeastern city-state is separated from its northern neighbor by the Johore Strait. Singapore is separated from Indonesia on the south side by the Singapore Strait (Ho, Winstedt, Leinbach, & Kenndard, 2016). The advanced logistics infrastructure of Singapore supports continued business growth and attraction to the developing country (“Comparing Logistics Infrastructure of Countries in ASEAN,” 2007).
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.
(Bilton et al 1996:5) The process of globalization has certainly had many changing effects to the world we live in; it has also changed the way many factors operate. Globalization is said "to have transformed the structure and scale of human relationships that social, cultural, political, and economic processes now operate at a global scale with a consequent reduction in the significance of other geographical scales. "(The Dictionary of human geography 2004:315) Globalization has had both positive and negative effects on a local, national, international and global level. Globalization often brings benefits at one level which cause negative effects at another, these results and the scale at which they manifest are often uncertain and unpredictable.
Globalisation is a broad term that is often defined in economic factors alone. The Dictionary at merriam-webster.com describes globalisation as “the process of enabling financial markets to operate internationally, largely as a result of deregulation and improved communication.” Also due to deregulation on the financial market, multi-national companies are free to trade and move their businesses to areas where a higher return or profit can be achieved. New technology also enables companies to relocate to areas where labour costs are lower, for instance movement of call centre jobs from the UK to India.
In this essay we look in-depth on how government strategies and economic policy play a crucial role in the success of High Performance Asian Economies (HPAEs) during 1960 to 1990 (World Bank 1993).There are eight countries within HPAEs: South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia and Japan. Its economic development has significantly rise that it was name ‘East Asia Miracle’ (World Bank, 1993).
Among the largest economies, Singapore is the 3rd most globalized economy and ranks 3rd among the wealthiest of nations.
The interrelation and the integration of people, companies, governments and nations can be described as globalization. Globalization was produced due to international trade and investments with the help of technology. In today’s world, globalization is very essential. The advancements and technology help the process needed it for globalization. Many countries and organizations similarly are affected by this phenomenon, on the other hand, smaller countries have benefit from larger contributors in the world’s market.
Globalization is the increasing interconnectedness of people, places, and cultures throughout the world today. The effects of this homogenizing process that we call globalization can be seen in all aspects of life. From McDonalds being in almost every country, to the majority of North American clothes being made in periphery countries, to the technological ability that allows us to instantly communicate with people anywhere in the world, the effects are everywhere. Economically today, globalization has had both positive and negative effects around the world, with many similarities to colonization. Globalization has also led to increased poverty amongst the global periphery, and a specific group of winners and losers within this process of globalization.
Globalisation is a very complex term with various definitions, in business terms, “globalization describes the increasingly global nature of markets, the tendency for transnational businesses to configure their business activities on a worldwide basis, and to co-ordinate and integrate their strategies and operations across national boundaries” (Stonehouse, Campbell, Hamill and Purdie, 2004, p. 5).