2. Economic of Singapore
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 has started after the World War II but it has boosted up fairly sincemid-1980s, and this had moved
…show more content…
Most of the countries in the world had used trade to help in expanding and advance their economies and trade markets. Singapore also used the aspect of globalization which has increased communication in her own advantage to improve the economy and trade. The positive effect of globalization is that it has caused rapid changes in trade relations, financial flows, and mobility of labour across the world. The development has brought the economies of developed countries closer together and strongly interrelated to each other. Trade is the most common across the countries and people are able to move from one place to another more conveniently and frequently than before the globalization has happen in this world …show more content…
The meaning of actual growth is that an increases in real Gross Domestic Product (GDP) by shifting an aggregate demand to the right. An increases in net exports which is exports minus imports, to the rest of the world raises aggregate demand, this in turn will leads to a more balanced increases in GDP via the multiple effect. Singapore is a countries that depend more on the exports for economic growth. Thus, net exports is make up the largest component of Singapore’s GDP. Hence, increases of actual growth can also help Singapore to achieve full employment or the alternatively low unemployment
Our global world is being more connected as we become integrated politically, socially and even economically. Due to the Bretton woods agreement, different countries have been economically dependent on each other in fear for war to erupt. From then on different organizations and policies tied more countries into being economic globalized. This economic globalization had then given us many opportunities in trades and more access to natural resources in other countries. Unfortunately, there are some negative effects that are brought to less developed country. Overall, many people believe that economic globalization does a great work on accumulating our economy and our quality of life.
The trend toward a more globalized market has become increasingly developed in the latter half of the 20th century. Emphasis on world trade has become a dominant figure in almost every Nation’s economy. Between 1970 and 2000 world trade has experienced an increase of almost 370 percent. Concurrently, world GDP increased by 150 percent. Trade is beneficial to Nations because it allows the creation of avenues that aid in efficient allocation of resources (Canas & Coronado). Countries can gain from trade when they specialize according to their comparative advantage. This is, when they create conditions where goods and services can be produced at a lower opportunity cost than in any other country. Along the same logic, countries can also make large profits by taking advantage of another countries comparative advantage.
Globalization is a series of social, economic, technological, cultural, and political changes that promote interdependence and growth. Globalization raises the standard of living in developing countries, spreads technological knowledge, and increases political liberation. Harris 5-23. The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress.
Nowadays, Globalization is a main trend for the world economic. The world’s economy has become fully integrated. There are no barriers and borders to trade around the world.
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.
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,
...es or benefits in the world today. Through globalization, many nation has been opened up for trade. Globalization has also led to an increase in the Human Development Index, has opened up opportunities for women, and has led to the establishment and expansion of many global companies that give jobs to a lot of people all over the world. Through globalization, there has also been the need to establish international institutions such as the United Nations that helps foster and maintain peace and unity all over the world. Globalization has also led to centralization of resources as people are able to access commodities easily, and also through mergers of major international organizations or institutions. Globalization has brought countries together to fight the impacts of environmental pollution as well as other vices such as drug trafficking and human trafficking.
How did Singapore government make fully use of it? How did a third world country become to the Singapore we known today? It economic growth was recognized as a miracle and was an economic role model in Asia.
Singapore is an island and a smallest country in Southeast Asia. Singapore is one of the “Four Asian Tigers” where the world major cargo seaport occurs. Despite the small size of the nation, Singapore economy have strong international trade link with capitalist mixed economy when the government intervention in the market is minimal (Economy watch, 2011).
Singapore as a country has had various transformations throughout its history, however the period 1950 and 1970 was quite critical. Much of these changes had a lot to do with the development of trade and manufacturing. This is without forgetting the financial sector where the intention was to come up with a financial hub that could be used in economic development. Looking at the case of Singapore, we would say that it is a productive economy with a very high market competition. This observation has been further clarified by the Swiss International Institute for Management Development, going with their report that they released in the year 2001 (Chellaraj & Mattoo, 2009). In this study, we intend to evaluate the case of political economy of development in Singapore and examine the tensions between the state and various economic institutions. In additions to examining this institution, we would also like to examine how these variables have contributed towards the attainment of favorable growth rates and economic prosperity.
It is widely accepted that there are a lot of benefits globalization brought to our life. Firstly, advanced transportation system makes different places of the world closer. Considerable amount of exciting tourists can visit remote villages in the corner of the earth. Secondly, new telecommunication, such as internet and TV, makes people’s common life colorful. Fans in China who are interested in Manchester United can also share their joy with their counterparts in United Kingdom, when the team won a game. Moreover, we can buy the popular products of high quality made in other countries, such as automobiles of Volkswagen and furniture of IKEA. Finally, globalization can lead to cooperation in trade between different countries. Even though globalization can bring so many conveniences to us, we still worry about its severe negative aspects.
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).
Globalization on a broader scale, is an integration act, involving cultural, mental, political as well as economic aspects of a person, among countries. It is mostly limited to, economic integration, associated with movement of people, exchange of technology and information, trade as well as financial flows. . This is practice is clearly miles ahead, as demonstrated by the ever increasing capital flows in the world economy as well as the level of importance, the world economy has. As a result of globalization, tremendous pressure is on the nations to keep up with its demands and this has had a lot of consequences. Some pundits will tell you that these effects are only economic based,
Globalization is associated with bringing together world economies and cultures. Globalization is a controvertible conception. This allows powerful corporation change local enterprises and in the future make the gaps big between, rich people and poor people. The benefits of an international market to integrated where labour, ideas, capital and goods can be free and to promote the economic development all of the levels in the society. Globalization is a process to interact and integrate among companies, people and the governments of other nations. Globalization is process which international organization, corporations, individuals and communities has become more interconnected with politics, cultures and the earths environment. “It is characterized
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)