Chapter 9- Tensions Arising From Economic Impacts Of globalisation

Question 1

Pros and cons of fta (foreign trading activities)

Answer 1

Pros

1. Increased trade between countries generate more trade revenue
2. No tariff= more trade of goods
3. Creates more jobs for people in trading

Cons:
1. Suffer losses if cheaper goods are exchanged

Question 2

Pros and cons of FDI(foreign direct investment)

Answer 2

Pros:

1. Foreign investment creates more jobs
2. More financial resources

Cons:

1. Limited transfer of skills between foreign investors and staff and companies
2. Top positions may not be given to locals

Question 3

What happened in 2008 global financial crisis?

Other countries and Singapore

Answer 3

USA: stock markets fell, reduced demand in goods and services
China: 20 million migrant workers lost job
India: foreign investment fell by 10billion usd
Singapore: falling exports, lesser investments, lower tourism rates
Gov: lower interest loans for local businesses and subsidies
Those who lost jobs assisted to find new ones, increase skill sets
New businesses got further tax exemption

Question 4

What benefits vs cons did fdi and fta bring to Singapore?

Answer 4

Fdi: pro 2013, 2012
Con: limited transfer of skills, hire countries from own country so no need for local workers

Fta: pro: USSFTA
Con: cheaper goods -> Low sales, unemployment

Question 5

How has globalisation impacted countries economically?

Answer 5

Higher profits: MNC cheaper raw materials, cheap labour

Lower profits: increased competition, companies constantly have to be innovative

Economic impact on SMEs:

1. Bulk of employment
2. Challenges: Competition with MNCs
3. Benefits against MNCs
4. Sg helps SMEs

Question 6

How did globalisation affect individuals economically?

Answer 6

1. Higher income: higher pay, transport + technology, free stuff, hobbies
2. Lower income: increased competition, USA relocation , skill sets

Question 7

How did the government respond to Low income due to globalisation?

Answer 7

1. Mom introduced cet( continuing edu training)
2. Workfare training support scheme (wts)
   Wts- training commitment award, workfare skills up, workfare income supplement
   Skills future: obj: Lifelong learning culture, informed choice in edu, high quality edu system and react positively to changing world