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22 Cards in this Set
- Front
- Back
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What are the three driving forces of globalisation?
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Developments in Transportation
Developments in Communication Trans-national Corporations |
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How are developments of transportation driving forces in globalisation? Two examples?
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Increase in speed and mobility with less time and cost
Containerisation: using standard-sized loading containers - maximum space to reduce time and cost. It is; simplify transfer from modes of transport as containers easy to transfer - orderly and efficient Efficient, integrated transport infrastructure (e.g. airports, seaports, highways) - goods and people moved easily |
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How are developments of communication driving forces in globalisation? (2 links) (2 examples, though not strictly this)
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(refers to stuff like internet, telephone, email, fax, video conferences)
Communication and information access faster and convenient: Increases spread of knowledge Allows TNCs to coordinate and control activities worldwide Examples: Satellite technology - near simultaneous messages received across the globe; optical fibers: large data-carrying capacity at high speeds |
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How are transnational corporations driving forces in globalisation? (1 e.g.)
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Causes worldwide economies to become integrated and co-dependent
Firms locate in different locations to source for new markets and find lower production costs (set up offices etc. around for cheaper costs/market) E.g. Boeing, an American country, sources for components worldwide. (Airplane door from France, Engine from Britain) |
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What are the economic impacts of globalisation? (2 positive, 1 negative)
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Positive:
Increased competition among nations Improvement in standard of living Negative: Widening income gap between rich and poor |
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How is an improved standard of living a positive impact of globalisation?
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Globalisation = increase in income level as trade and foreign investment increase = more revenue
(Singapore average household income, 2000 = 4940, 2004 = 5170, 2005 = 5400 all in S$) Foreign goods are available: increase in lifestyle choices = better life Revenue used by government to increase standard of living as well. |
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How is increased competition among nations a positive impact of globalisation? (2)
(2 examples for one, one for another) |
Investment and market
TNCs seek out locations; governments compete to attract them Example: Sea and air ports: S'pore vs Malaysia - world's biggest container shopping line, Maersk Sealand, shifted hub to Mlysia as they are cheaper and more flexible. This puts M to forefront of transshipment business Example: China open to foreign investments - due to low production costs attractive to many companies and developed rapidly ; poses strong challenge to other countries in the region - has a well-developed infrastructure like transport and industrial parks Dalian: well-developed infrastructure e.g. sea and airports(more than 88 air routes incl Jp, Kr,Rssia) , over ten banks financial institutions (foreign as well, e.g. Standard Chartered Bank and Korea Exchange Bank) ; Foreign companies advantage: Enjoy lower tax rates, high-tech industrial park to encourage R&D |
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Talent (Increased worker mobility)
As people can move around in search of leisure and employment, the skilled are sought after. As the workforce has an opportunity to find employment in another country, (Better employment opportunities for them, therefore positive impact) brain drain results as advanced economies search for new talent pools. So emerging economies have to try and attract their skilled back. E.g. India: In 1970-1980s many opportunities in US but now India got many TNC, pays well. Now many Indians trained in US have returned to India to set up their own firms or join TNCs as they were offered attractive alternative at home. |
Talent(Increased worker mobility)
As people can move around in search of leisure and employment, the skilled are sought after. As the workforce has an opportunity to find employment in another country, (Better employment opportunities for them, therefore positive impact) brain drain results as advanced economies search for new talent pools. So emerging economies have to try and attract their skilled back. E.g. India: In 1970-1980s many opportunities in US but now India got many TNC, pays well. Now many Indians trained in US have returned to India to set up their own firms or join TNCs as they were offered attractive alternative at home. |
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How is the widening income gap between the rich and the poor a negative impact of globalisation?
1. Within developed countries? 2. Developed countries vs. less developed countries? |
1.TNCs draw resources, people and investments from poor areas to them as it's more beneficial. Hence LDCs are poor - Trade restrictions, can't produce better quality goods than DCs due to low skill and so on. TNCs go LDCs for labour-intensive and low cost production, so working conditions are poor.
DCs get richer due to their manufacturing industry dominance, and TNCs get much revenue from global trade. 2. Widening income gap. The rich are prosperous with better opportunities, while the poor and lowly-skilled are economically uncertain due to retrenchment. This causes social problems and hence an increase in tension. |
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What are the social effects of globalisation? (one positive, one negative)
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Positive: Increased awareness of foreign culture - increase spread of info e.g. Internet allows convenient access to cultural information even at home. Impossible without globalisation
Negative: Loss of local culture Pop culture: forces culture on rest of the world, and youths lose interest in local culture Global brands: Creates a homogenous culture with identical outlets and a domination of markets. Starbucks, Mcdonalds dominate consumer markets in developing countries. |
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What are the environmental effects of globalisation?
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Environmental degradation
Environmental management |
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How is environmental degradation a negative effect of globalisation? (3 e.g.)
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TNC factories use natural resources such as timber, oil and metals at rapid rate; too concerned with profit and eager to reap globe's economic benefits rather than environmental protection - Natural environments suffer, also LDCs lack resources for environmental regulations
Global warming: Movement of goods (tpt) produces greenhouse gases and factories also produce fumes. CO2 and N oxides Consequences: increase in global temperatures Deforestation e.g.: Brazil (beef) Area of forest lost in Amazon rose from 41.5 million hectares in 1990 to 58.7 in 2000. Rapid deforestation rate due to high international demand for Brazilian beef. Indonesia - cash crops, factories, transport infrastructure. Trans-Kalimantan Highway (230km) cuts through rainforests. Improve transport btw. Banjarmasin and Balikpapan. Three Gorges Project (China): a hydroelectric dam, ensure flood control. Problems include erosion, extinction, water pollution and resettlement |
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How is environmental management a positive effect of globalisation?
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Advantages: Greater co-op between countries, and essential to promote economic growth.
With a well-preserved env, we can keep using resources to get income and maintain SoL E.g. Challenge to find sustained, alternative energy sources - dams costly, environment hazardous, geothermal doesn't work for countries with no geothermal activity |
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How can Singapore maximise its opportunities and overcome challenges in a globalising world? (5)
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Diversify economy
Nurture growth of Small and Medium Enterprises Venturing abroad Expanding market reach through economic co-operation Managing resources efficiently |
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How does Singapore diversify its economy? (4 (3, 1 with two subpoints))
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Sg aims to be centre for tech-intensive, high value-added manufacturing activities e.g. in pharmaceuticals and chemical engineering. Attract TNCs to set up high value-added manufacturing activities e.g. Seagate (largest hard disk manufacturer) Generates jobs.
Science: R&D and Life Science A*STAR: Agency for Science, Technology and Research - build up SG R&D capability. IMCB, Institute of Molecular and Cell Biology (R&D) established in 1987 help develop and support biomedical R&D capabilities in SD. Regional hub for services like education and tourism - Education: Leading international university branches like Pennsyl, Chicago, Shanghai and Stanford setting up here. Create strong university sector to attract talent. Tourism: IR (Marina Bay, Sentosa) - no natural attractions; stiff competition: IRs strengthen Sg's position as choice tourist destination. Economic benefits: jobs created when developers invest. |
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How does Singapore nurture the growth of SMEs?
Why are SMEs so important? Why can't SMEs compete with big corps? (3) How are they helped? (2) |
SMEs make up a large percent of business, and support TNCs by providing components.
They have less exposure and contacts with the external world. Cannot compete with larger companies with more resources. They are also limited by skills and experience: no expertise in using advanced technology, short of skilled professionals. Small domestic market due to insufficient capital Nurture: Association of SMEs '86: Seminars and workshops enhance their capacity; new companies granted tax exemption on first 100k income for up to three years SG banks provide financial support to counteract funding probs due to size limitation |
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How does Singapore venture abroad? What are the benefits of regionalisation? (2)
Give two examples of venturing abroad (2) What is a potential disadvantage of venturing abroad? |
Regionalisation: getting a greater market by investing in nearby countries w/ land, low labour costs and new markets
Global investment ensures that economic growth is maintained even if one region is weakened. 1994 Suzhou Industrial Park established. Many Singapore firms have set up business in the park. International Tech Park in India, joint SG-I venture As many Singapore-based companies move abroad, many Singaporeans may relocate overseas. The years spent abroad may cause them to lose touch and feel less attached and emotionally rooted. Regionalisation can lead to loss of talent as they migrate. |
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How does Singapore expand market reach through economic co-operation?
Two examples? |
Singapore forms trade ties with other countries due to its small domestic market (because of a small population) enable them to sell their good to larger market.
Special Economic Zones (SEZs): Geographic region in country with less stringent economic laws than the rest: Zones of rapid economic growth using tax and business incentives to attract foreign investors (e.g. S'pore-Indonesia) Benefits of SEZ in Riau, Indonesia -Smoother flow of goods between Singapore and the Riau islands. Easier businessmen to invest because of simplified procedures for work permits and visas. Free Trade Agreement: legally binding between 2+ countries to bring about close economic collaboration. Companies enjoy cost savings as taxes removed. Service standards will improve with increased foreign compeition. Singaporeans will enjoy more choice in goods and services. e.g. ASEAN, NZ, Japan, Australia, US, India, Jordan, South Korea. |
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In what ways does Singapore manage its resources efficiently? (3)
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Developing people
Attracting foreign talent Managing environment |
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How does Singapore manage its resources by developing people? (2)
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Promoting continuous learning among workforce
Workforce Development Agency (2003) ensures competitiveness by providing opportunities to enhance employability through skills upgrade - Programme by WDA - Employability Skills System equip them with skill for them to better adapt to new job demands and changing work environment. Promoting local entrepreneurship and technopreneurship: Amend bankruptcy laws; allow failed entrepreneurs to start business again; encourage people to take risks; Give recognition to entrepreneurs who have struggled and succeeded to inspire other entrepreneurs. |
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How does Singapore manage its resources by attracting foreign talent?
Why? (2) How? (1) What is an effect of this, socially? |
To deal with declining birth rate and meet manpower needs; introduce new skills in a knowledge-based economy by bringing in foreign talent. They also bring overseas business contacts.
Therefore drawing FT here helps create business opportunities and jobs here. SG also welcome F who possess specialized skills as they make up for lack of local expertise. Results in a more cosmopolitan society and adds diversity to cultural landscape |
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How does Singapore manage its resources by managing the environment? (3)
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Managing limited land resources
Singapore has only 712.4 km2 of land, besides the 40% of land taken up by water catchment areas. Careful land-use planning must be carried out, building high-quality facilities to ensure a good quality of life and hence sustained growth. E.g. Flats in Tampines, Simei and Changi cannot exceed 12 storeys because of flight paths of planes from CIA. Offshore Pulau Semakau landfill built as land area on mainland limited. Expected to last 30 years until 2030. Plans for other waste disposal infrastructure planned for future include incineration plants in Ulu Pandan, Tuas, Tuas South and Senoko. Co-operation with regional and int. organisations Helped Indonesia detect forest fires and haze via satellite (ASEAN) Signed international agreement - Kyoto Protocol to restrict ozone depleting substances; S'pore phased out CFCs in 1996 Public education - to adopt env-friendly ways; sense of responsibility and interest to keep the environment clean e.g. Clean and Green Week since 1990; Bring Your Own Bag Day- less plastic bags wasted |
