Chapter 9- How Do We Respond To Tensions Arising From Some Economic Impacts Of Globalization?

Question 1

What are the negative economic impacts of globalization?

Answer 1

1. ECONOMIC DOWNTURN FOR COUNTRIES
   - Example: the 2008 Global Financial Crisis (GFC) started with a slowdown in US economy.
   - Rising unemployment in the US meant Americans were unable to pay their bank loans or spend more.
2. LOWER PROFIT AND MARKET SHARE FOR COMPANIES
   - Example: Small and Medium Enterprises (SMEs) such as provision shops beloe HDB blocks face competition from foreign supermarkets like Giant that expanded into SG.
3. LOWER INCOME FOR INDIVIDUALS
   - Example: Uniqlo moved their factories from China to Vietnam as the labour cost in Vietnam was lower.

Question 2

What are the positive economic impacts of globalisation?

Answer 2

1. ECONOMIC GROWTH FOR COUNTRIES
   - Examples:
   a) leads to more Foreign Direct Investment (FDI). Roche, which is a foreign drug company, expanded their business here by setting up research labs and offices in SG.
   b) leads to more Free Trade Agreements (FTAs). SG has FTAs with other ASEAN countries. It allows trading of goods w/o taxes or duties.
2. HIGHER PROFITS AND MARKET SHARE FOR COMPANIES
   - Example: Breadtalk is a SG company that expanded and opened shops in other Asian countries like Indonesia.
3. HIGHER INCOME FOR INDIVIDUALS
   - Example: JJ Lin, who is a Sgrean singer who went to foreign countries like Taiwan and China to explore more work opportunities, record songs, release albums and hold concerts.

Question 3

What are some strategies to cope with globalisation?

Answer 3

1. COMPANIES
   A) Innovation
   -Example: Love, Bonito is a local fashion retailer that focuses on online sales.
   -Early adopters of social media marketing and used data analytics to make business decisions.
   B) Collaboration
   -Example: MMI Holdings is a local SME that manufactures hard drives.
   -collab with Seagate Technology to supply hard drives for them.
2. INDIVIDUALS
   A)Training.
   -Example: Individuals can constantly upgrade themselves by making use of gov. schemes like SkillsFuture.
   -Using SkillsFuture credits given, they can attend subsidised or free courses in their current or new areas of work.