Chp 9 - Economic Impact of globalisation

What are direct economic impact of globalisation on the individuals? Name two.

Answer explanation

Positive:

Higher income - can look for jobs anywhere that offer better terms like more pay, lesser hours etc. Openness of system

Negative:

Loss of or Lower income - greater competition for jobs, when not skilled, get lower pay

How has Singapore responded to help individuals who receive lower incomes due to globalisation?

• Demand companies to raise wages

• Set up Further Education & Training (FET)

• Ban the hiring of top talents in companies

• Launch Workfare Training and Support Scheme

Answer explanation

WTS - upgrade skills through re-training to remain employable

CET - to continue learning, pursue education to have the necessary knowledge

Companies embrace globalisation as they can gain (a)  

Answer explanation

Companies get higher profits by expanding beyond their country of origin so that they

1) have operations in different locations

2) can enjoy bigger market - bigger countries

3) pay less for labour and resources hence make more money/profit

An SME may feel threatened by globalisation because

• their market share may decline

• they cannot expand outside their country

• they can partner MNCs to improve operations

• they cannot compete in terms of resources and expertise

Countries who embrace globalisation and seek FDI can

• offer all its workforce a higher pay

• cause unemployment for local workers

• get more SMEs to operate in the country

• experience economic growth with more trade

Companies gain from globalisation because they can widen their market reach and get more profit. What drivers of globalisation helped them do so?

Answer explanation

Developments in transport:

They can open outlets/offices overseas easily as travel is improved

Developments in technology:

Monitoring of operations is facilitated despite it being across borders ie video conferencing, data analysis

Two examples of a Singapore companies that have gone global are _____________ & _______________

(a)