Singapore And Singapore: A Comparative Advantages Of Singapore

1143 Words3 Pages

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

Show More
Related

  • Singapore, Mary Mann's 'Singapore And What Work Is'

    1398 Words  | 3 Pages

    Life is not always easy, at some point, people struggle in their life. People who are in the lower class have to struggle for a job every day and people who are in upper class also have their own problems to deal with. These ideas are very clear in Mary Oliver’s “Singapore”, Philip Schultz’s “Greed” and Philip Levine “What Work Is”. In "Singapore" a woman is likely lower class because she works at the airport and her job is to clean the bathroom. In both “Greed” and “What Work Is”, the speakers make the same conclusion about the struggle in the lower class. “Greed” furthermore discusses how Hispanics get a job first before whites and blacks because they take lower wages. All three poems deal with class in term of the society. The shared idea

    Read More

  • What Are The Pros And Cons Of Free Trade

    1074 Words  | 3 Pages

    These countries should consider embracing free trade in order to fully benefit in many areas for their economy. There are several pros and cons to consider regarding free trade. Free trade fully removes any hassles of taxes and other government restrictions that limit international trading opportunities. Free trade vastly improves upon the economic wellbeing of all nations involved in international trading. Since free trade also allows each nation involved to specialize and create specific commodities, free trade can run efficiently and inexpensively compared to other complicated

    Read More

  • Analysis Of Managing Multicultural Team

    894 Words  | 2 Pages

    For example, Thailand has extended labor market to a neighbor for supporting AEC (ASEAN Economic Community); the establishment of the ASEAN Economic Community in 2015. This situation contributes to the cultural exchange, even labors of those countries can move to work legally in countries with higher wages than its home country such as Singapore, Malaysia, and Brunei. In the same way Thai companies need cheaper labor form Lao, Cambodia, and Myanmar, thus many companies need a manager who has ability to control the efficiency of conflicts within a situation of diverse

    Read More

  • The Absolute Advantage In The United States

    244 Words  | 1 Pages

    A comparative advantage occurs when a country takes the least amount of time for the certain good/service to be produced when compared to other countries. When the United States is compared to countries A (Developing) and C (Developed), it has the comparative advantage when concerning the agricultural products of corn and citrus (Table One). The United States has the

    Read More

  • Analysis Of Singapore's Education Journey

    1293 Words  | 3 Pages

    Singapore’s education journey can be divided into three broad phases namely the Survival-Driven Education (1959 – 1978), Efficiency-Driven Education (1979 -1996) and the Ability-Based, Aspiration-Driven Education which Singapore has adopted since late 1990s. The education policies have evolved to address the context of the country’s stage of development and the challenges it faces at each point. More recently, we are transiting into a knowledge-based economy to face external challenges such as market volatility, increasing globalisation and rapid technological advancement. As Singapore does not have its own natural resources, it is a necessity to develop the people to their fullest to survive. And as the future becomes more volatile with rapid

    Read More

  • The Role of Government Intervention in Developing Nations Economy

    1825 Words  | 4 Pages

    All nations can get the benefits of free trade by being specialized in producing goods they have a comparative advantage and then trade them with goods produced by other nations in the world. This is evidenced by comparative advantage theory. Trade depends on many factors, country's history, institution, size and. geographical position and many more. Also, the countries put trade barriers for the exchange of their goods and services with other nations in order to protect their own company from foreign competition, or to protect consumers from undesirable products, or sometimes it may be inadvertent.

    Read More

  • Comparative Advantage Case Study

    1112 Words  | 3 Pages

    The Law of Comparative Advantage was introduced by David Ricardo in 1817 in his book ‘Principles of Political Economy and Taxation’. According to this classical theory, a comparative advantage exists for a country when it has a margin of superiority in the production of a certain commodity over others. Comparative advantage results from differing endowments in the factors of production like technology, natural endowments, climate, etc. among different countries. Therefore, each country exports the commodities which it can produce at a lower opportunity cost or, in other words, lower marginal cost of production and imports the rest. This would ultimately be beneficial for all countries engaging in free trade as each would gain through its specialization

    Read More

  • Economy of Singapore

    1064 Words  | 3 Pages

    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.

    Read More

  • H-O Model

    928 Words  | 2 Pages

    For example, Singapore with plentiful capital but limited land has comparative advantage in products that require a lot

    Read More

  • The Development of Singapore

    623 Words  | 2 Pages

    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).

    Read More

  • The Country of Singapore

    1415 Words  | 3 Pages

    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.

    Read More

  • APEC

    1157 Words  | 3 Pages

    Asia-Pacific Economic Cooperation (APEC) began in 1989 in reaction to the developing interdependence among Asia-Pacific economies. At first this organization was a group that met unofficially. APEC now has become the crucial provincial conduit for encouraging open trade and realistic economic cooperation. It’s objective is to progress Asia-Pacific economic vitality and the essence of the people.

    Read More

  • Essay On Singapore

    1214 Words  | 3 Pages

    Singapore has only a small number of natural resources, so it relies on its human capital as an advantage which is well-known globally and also known to be a skilled work force. Another advantage that Singapore has is its prime location in where the tiny island is located. This have given the people an edge of being a busy port, placing itself as the leader of the trading hub and logistics

    Read More

  • Drivers Of Globalization Essay

    1368 Words  | 3 Pages

    Porter 's competitive advantage theory which emerged in 1990 contradicts that the theories of comparative advantage and Heckscher-Ohlin cannot provide an explanation as to why some countries prosper and others fail to succeed in international competition. He distinguished four qualities that advance or hinder the creation of competitive advantage; Factor endowments, demand conditions, relating/supporting industries and firm’s strategy, structure, and rivalry. So far, Porter’s study hasn’t been appropriately experimented to know how well it holds up (Hill, Cronk & Wickramsekera 2014). Regardless of this, the key drivers of globalization have transformed the nature of international business and possibly be the reason behind the success of international business since 1970. The decline in trade and investment barriers has enabled the international business to growth further. Once a business exports/imports goods from other countries or commits to FDI, it becomes an international business. Lowering trade and investment barriers are characteristics of international business. This allows growth in FDI and moves towards regional economic integration. The advantages of the political driver on international businesses include; the diverse variety of goods available to consumers through the new trade theory, low prices, economic growth and competitive advantages. The disadvantages are; potential risk factors, foreign debt, exchange instability and high cost. Weakening the barriers also permits international businesses to station production at the ideal area for that activity. Thereby, a firm may outline a product in one nation, produce segment parts in two different nations, manufacture in another country and afterward trade the finished product around the globe. Technology has altered the nature of international business by introducing

    Read More

  • History Of Singapore

    943 Words  | 2 Pages

    Looking back on the history of Singapore its hard not to sit back and rivet at all the progression and improvement that have made Singapore a more relaxing and astonishing haven and must-see destination. Starting chronologically, from the Sanskrit words “simha” (lion) and “pura” (city) Singapore or Singapura, the “lion City” shows the rich history and the beginning of a new era that Singapore went through, and describes the city-state and the city life of people whom live or visit Singapore. We then move into how the city-state flourished as a trading post for a lot of sea vessels, which include Chinese junks, Portuguese battleships, and Indian vessels. The nineteenth century was an important time for Singapore because it was when modern Singapore was founded. On January 29, 1819 Sir Thomas Raffles (the...

    Read More

More about Singapore And Singapore: A Comparative Advantages Of Singapore

Open Document