The document discusses key driving forces of globalization such as transportation, communications, and transnational corporations. It then examines the impact of globalization on Singapore, including increased standards of living but also widening income gaps and loss of local culture. Finally, it outlines Singapore's strategies to manage globalization, such as economic diversification, developing entrepreneurship, and international cooperation on issues like environmental management.
3. Key Driving Forces
Transportation
Shrink the world
Jet aircraft, containerisation
Faster access to the world
Communications
Telephone, emails, fax, msgs, optical fibre
systems, internet
Speed
Coordination convenience
4. Key Driving Forces
TNCs ( Transnational Corporations)
Microsoft Corporation, Toyota Motors
In different parts of the world
○ Lower cost of production
○ New markets
○ Ease of resources
5. Possible SEQs:
To what extent are TNCs a key driving
force in integrating the economies of the
world? Explain your answer.
Which of these do you think is the most
significant force in driving Singapore
towards a globalized economy? Explain
your answer.
Advancement in technology
Advancement in transportation
Operations of the TNCs
6. Impact of Globalization
+ve
Improved standard of living
○ Increased income level – more investment,
more revenue, better infrastructures
○ Yr 2000 - $4940 (ave household income)
○ Yr 2005 - $5400 (ave household income)
Variety of foreign goods
Better quality of life
7. Impact of Globalisation
+ve
Increased competition among nations
○ To attract TNCs/ MNCs
Eg China (Suzhou, Wuxi, Dalian developed industrial
infrastructures to attract foreign investors)
City of Dalian (see pg. 52)
Singapore vs Msia ports (see pg. 53)
Bangkok vs HK vs Singapore airport (see pg. 53)
8. Impact of Globalisation
+ve
Talent
○ Opportunity and talents move around the
world
○ Ease brain drain issues
9. Impact of Globalisation
+ve
Increased awareness of foreign culture
○ Learn about history, culture, way of living
○ Travelling, surfing the internet, films
10. Impact of Globalisation
+ve
Awareness of environmental management
○ Alternative energy (wind, solar, geothermal)
Eg. The Three Gorges Project ( hyrdro electric
power)
Importance of sustaining energy
○ Conservation projects
12. Impact of Globalisation
-ve
Loss of local culture
○ Foreign/ global brands dominate market
○ Homogeneous culture around the world
Starbucks, Macdonalds
○ Spread of pop culture – youths lose interest in
local culture
13. Impact of Globalisation
-ve
Environmental degradation (deforestation/
global warming/ flooding/ erosion/ haze)
○ Greenhouse gases emitted from planes and ships
○ More factories = more pollution
○ More uses and exploitation of natural resources to
gain profit (see pg. 59)
Eg. Devastation of Amazon rainforest (58.7 million
hectares in 2000)
Eg. Clearing of rainforests by small-scale farmers to
plant cash crops/ by developers to build factories and
transport facilities
Eg. The Three Gorges project
○ Lack of environmental regulations
14. Case Study: Singapore
Strategies
Diversify the economy – “spread the eggs”
○ Centre of technology-intensive, high value
added manufacturing activities, life sciences,
pharmaceuticals products
A*STAR for R & D
IMCB for biomedical advancement
SARS detection test kit
○ Regional hub for education and tourism
More global brand universities
IR as tourist attraction
15. Case Study: Singapore
Strategies
Nurture SMEs as a regional manufacturing
hub ( Polar Café, Bread Talk, Qianhu
○ Provide employment
○ Support TNCs activities – banks, ASME, tax
exemptions
16. Case Study: Singapore
Venturing abroad
Regionalisation
○ Abundant land, lower labor cost, new market,
supportive govt
○ Cooperation btw Singapore “soft” ware;
foreign “hard”ware
Suzhou Industrial Park, China
The International Tech Park, India (Bangalore)
Singtel Group (casting its net far and wide)
○ Relocation of Singaporeans (work and
education)
17. Case Study: Singapore
Expanding market reach through economic
cooperation
Free Trade Agreements (FTA)
○ More choices in goods & svcs
○ Improved standards due to competition
○ Cost savings – tax exemption
○ Bigger market outreach
○ Ease to venture abroad
SEZs (Special Economic Zones)
○ Tax and business incentives
○ Singapore and Indonesia (Batam, Bintan,
Karimun)
18. Case Study: Singapore
Managing resources efficiently
Developing people
○ Entrepreneurship/ technopreneurship
New products for competition
Credit risk
Continuous learning (WDA)
Financial assistance for upgrading of skills
○ Foreign Talents
Create business opportunities
Create employment
Fill up vacancies
Diversify skills
19. Case Study: Singapore
Managing resources efficiently
Managing the environment
○ Land use – 680sq km with limitations
○ High standard facilities – houses,
transportation, commerce, defense, education
Eg. Downtown Marina Bay – financial hub
Eg. Jurong Island – chemical hub (reclaimed) JTC
○ Nature sites
Preservation of natural habitats
Waste disposal areas in P. Semakau, incineration
plants in Ulu Pandan, Tuas, Senoko
20. Case Study: Singapore
Managing resources efficiently
Cooperation with regional and international
organizations
○ ASEAN – haze management (ASEAN Ministerial
Meeting)
○ International – restricts the use of ozone depleting
substances (CFC)
Public Education
○ Sense of responsibility
○ General education in schools – recycling, wste
management, Clean and Green Week, workshops,
reduce use of plastic bags