Sunday, May 3, 2009
Ok, I blogged 1 day in advance since I thought I would be ultra busy on Monday.
Anyway, regarding SS notes, I will just put on Globalisation (since you only need 1 chapter to survive for SA1). So long as you memorised everything from front to back, back to front, up to down, down to up, word by word, you can safely secure 23/25 for SEQ. The rest of SBQ is up to your experience of it nia, can't be helped, paiseh.
Globalisation always tests on these 4 types of questions only, but only 2 will come out lah..
1) Key Driving Forces of Globalisation
2) Adverse Impacts of Globalisation
3) Economic Impacts of Globalisation
4) Singapore Strategies
Introduction (Don't be lazy and summarise it, bitches.)
[Can be used for all 4 essays]
Globalisation is defined as the process by which people, their ideas and activities in different parts of the world become interconnected or integrated. This makes the world smaller, making people more interdependent than before. I agree/disagree that __________ is the (copy the question). However, there are two other factors; __________ and ___________.
1) Key Driving Forces of Globalisation
a) Improvement in Transportation
In the 20th century, major improvement in transportation technology includes the use of commercial jet aircraft, large ocean-going vessels and containerisation. There is increased mobility of goods and people as countries have built efficient and integrated transportation infrastructure such as airports and railways to facilitate this movement. Such improvement in transportation technology has 'shrunk' the world considerably in terms of time taken to get from one place to another. Due to this, people can travel around the world easily and more speedily. In this way, the world becomes more interconnected. Hence, improvement in transportation is one of the driving forces of globalisation.
b) Improvement in Communications
Satellite technology has made it possible for a message to be transmitted from one location to another part of the world almost simultaneously. Optical fibre systems have very large carrying capacity and they are able to transmit information at very high speeds. The invention of advanced communication technology such as the internet has enabled consumers to gather information about new products and places. Advances in communications enables knowledge and ideas to be shared by people across the globe. It has made communication among people in different locations faster and more convenient. In this way, the world becomes more interconnected. Hence, improvement in communications is one of the key driving forces of globalisation.
c) Transnational Corporations (TNCs)
TNCs set up their operations in different locations around the world to source for new markets to lower the cost of production. It also source for components from around the world before assembling the final product in another country. Their headquarters coordinate and control all these activities to ensure that manufacture of the final products meets the production goals and the demands of their markets. Many economists are involved in the production activities and marketing strategies of these TNCs. As many economists are bought into contact with one another and especially with the countries of origin of the TNCs, it has made economies around the world more interconnected and integrated.
WEIGH THE FACTORS
Singapore's key driving force of globalisation is developments in transportation and communications because speed means money saved and hence higher earnings. The fact that Singapore is small geographically means it needs to connect with the rest of the world via advanced communications networks in order to maintain a competitive edge in global trade. However, it is wrong to assume that developments in transportation and communications alone would be sufficient to sustain Singapore's drive as a global hub. This is because Singapore needs TNCs to establish regional headquarters that will help reduce the cost of operation. For example, Singapore has chosen to invest in China due to lower costs of production. Conversely, cities in China like Suzhou, Wuxi and Dalian have benefited from Singapore's expertise and capital. Therefore, Singapore's success at globalisation would depend on a combination of 'win-win' factors and not just advances in technology.
*2) Negative Impacts of Globalisation
a) Environmental Degradation
Many environmentalists have argued that globalisation can be a destructive force to the natural environment and have protested against it. When TNCs set up plants in different parts of the world, many of them use natural resources such as timber, oil and metals at a rapid rate. At the same time, developing countries are eager to gain the economic benefits that come with globalisation. Very often, the natural environment suffers because these developing countries are more concerned with economic development than environment protection. Emvironment degradation poses a serious problem to the countries as well as to the rest of the world, bringing about problems like global warming which has far-reaching consequences. Future generations will suffer as a result of the irresponsible actions of the present generation.
b) Widening Income Gap Between the Rich and Poor Countries
Globalisation has rapidly increased the income gap between the rich and poor countries. It has resulted in rapid development in many countries. However, it has also increased the spread of poverty in many countries. The developed countries (DCs) are experiencing rapid income growth as they own most of the manufacturing activities. On the other hand, developing countries often face trade barriers imposed by the DCs. They are not capable of producing quality goods, which command high prices and fetch large revenue. The situation of widening income gap poses a serious problem to the countries that embrace globalisation as it may adversely affect social cohesion. If not properly managed, it may lead to many other social problems such as an increase in crime rates.
c) Loss of Local Culture
Globalisation may also lead to a loss of local culture. Globalisation has resulted in global brands such as Starbucks and MacDonalds' dominating the consumer market in DCs. These corporations with their standardised methods of operation have outlets that are identical in appearance. In this way, these corporations have created a homogenous culture across the world and eroded the local culture. The loss of local culture poses a serious problem to the country because when the culture is eroded, it would be difficult to re-create. As such, the identity of the country is at stake.
WEIGH THE FACTORS
Weighing the factors, I feel that environmental degradation is the most serious problem caused by globalisation as the impact is the most pervasive as compared to the other two problems. This is because environmental problems such as deforestation and global warming are international issues that affect most people around the globe. It cannot be solved by just one country alone but the combined efforts of many countries. In addition, countries may not cooperate and situation might be worsened, and further generation may suffer more from the current environmental issues. The problem of widening income gap and loss of local culture affects only the countries concerned, and the people affected is limited to the country and not others. Hence, I conclude that the environmental degradation is the most serious impact of globalisation since the level of impact is the greatest of all the three impact. The other two only elevates the impact of environmental degradation.
3) Economic Impacts of Globalisation
a) Increased Competition among Nations
Governments are competing with TNCs to invest in their countries. They offer tax incentives, tax rebates and duty free trade in order to attract the TNCs. More and more of TNCs have shifted from Singapore, Taiwan and Korea to invest heavily in key cities in China. For example, in Dalian, has well-developed infrastructure to support industrial growth, for instance, the city has more than 10 banks and financial institutions. TNCs are always searching for lowering cost of production. At the moment, China has become an attractive country for foreign investors and poses a strong challenge to other countries in the region. Therefore, through economic impact of globalisation, there is increased competition among nations for TNCs.
b) Improvements in Standard of Living
With trade and foreign investment, it increases revenue. With free trade, this also lead to expansion of existing industries and establishment of new business to meet the increase in demand for goods and services. The population is then able to enjoy better quality products and services. For instance, the average household income for Singaporeans increased from $4940 in 2000 to $5400 in 2005. With revenue earned, the government can spend on quality public goods. Free trade has also allowed consumers to purchase a variety of foreign goods besides local goods. The increase in lifestyle choices leads to a better quality of life and hence standard of living has improved due to globalisation.
c) Widening Income Gap Between Rich and Poor Countries
Globalisation has rapidly increased the income gap between the rich and poor countries. It has resulted in rapid development in many countries. However, it has also increased the spread of poverty in many countries. The developed countries (DCs) are experiencing rapid income growth as they own most of the manufacturing activities. On the other hand, developing countries often face trade barriers imposed by the DCs. They are not capable of producing quality goods, which command high prices and fetch large revenue. The situation of widening income gap poses a serious problem to the countries that embrace globalisation as it may adversely affect social cohesion. If not properly managed, it may lead to many other social problems such as an increase in crime rates.
WEIGHING THE FACTORS (PS, I don't have any sources for this, so you have to depend on yourself :P Unless you want my crappy way of weighing)
*4) Singapore Strategies
a) Diversifying the Economy
Singapore needs to diversify its economy by diversifying into high technology activities like chemical engineering, pharmaceutical and life sciences. For example, A*STAR was set up to build up Singapore's research and development capability. Singapore also aims to be a regional hub for services such as tourism and education. Tourism has also been identified as a service industry to be promoted. Two Integrated Resorts (IRs) are being built in Marina Bay and Sentosa respectively. Diversifying the economy ensures that Singapore's economy remains stable in the event of downturn of one sector of the economy. A stable economy enhances Singapore's competitiveness in a globalising world.
b) Venturing Abroad
Singapore ventures abroad through regionalisation, which involves investing in nearby countries that have abundant land, lower labour costs and new markets. The Singapore government and Singapore-based companies aims to provide infrastructure, expertise and money to develop industrial parts for host countries. In return, host countries provide land and labour for Singapore companies. Venturing abroad helps to sustain Singapore's economic development as it opens up new markets and allow Singapore to overcome her physical limitations such as small land area.
c) Nurturing Growth of Small-Medium Enterprise (SMEs)
SMEs play an important role in Singapore's economy. Today, SMEs make up a large percentage of businesses here. For example, Polar Café, an SME, has been in business for 80 years. To ensure that SMEs can continue to contribute to Singapore's economy, there are many schemes catering to their needs. For example, new companies are granted tax exemption on their first $100000 income for up to 3 years. Nurturing growth of SMEs promotes Singapore's development as these local businesses will be able to generate employment for the country.
d) Expanding Market Reach Through Economic Cooperation
Singapore has a small domestic market due to its small population. These is a need to establish trade ties with countries around the world to help local companies sell their goods to a larger market. One example of economic cooperation is signing Free Trade Agreement (FTAs) with other countries. Some benefits of FTAs is that companies will enjoy cost savings as taxes are removed and companies will also be able to sell their goods in more countries and hence increased profits. Another example of economic cooperation is the setting up of Special Economic Zones (SEZs). Singapore and Indonesia signed a new economic agreement designed to draw more investment and boost economic growth in the area and this will make Singapore more competitive. Economic cooperation promotes friendly trade ties and this brings about sustained economic development as Singapore faces stronger economic cooperation.
e) Managing Resources Efficiently
As people are Singapore's precious resource, they should have the right skills and mindset to thrive in the globalising world. One way to develop people is to promote local entrepreneurship and technopreneurship. Giving recognition to outstanding local entrepreneurs who have struggled and succeeded is one way to inspire more entrepreneurs to achieve greater success. There is a need to attract foreign talent to meet manpower needs. Foreign talent has the advantage of bringing along overseas business contacts. There is a need to have proper planning for land use because of Singapore's limited land resources. With careful land use planning, high standard facilities for housing, transportation, recreation, commerce, defence and education can be built. It is critical to manage human resource efficiently as Singapore's economic viability is heavily dependent on its people. At the same time, environmental management ensures sustainable economic development.
WEIGHING THE FACTORS (I only weigh a,b and c hor, cause in SEQ only need 3 factors)
Diversifying the economy is the most effective strategy to ensure that Singapore stat competitive as it encompasses the whole economy and gives immediate impacts on both sectors - manufacturing and services. Venturing abroad and nurturing SMEs give more impact to the manufacturing sector. Furthermore, SMEs have not been totally successful as they face many problems and venturing abroad has resulted in many citizens losing their sense of rootedness as they have worked too long outside of their country.
DONE WITH EDITTING!
Melvin
P/S : *Quite important essays, cause they are usually more likely to be tested.
Class 406'09
Jaywalkers
A class who played and worked hard
9:26 PM
