Chpt 9- Strategies To Cope With Economic Impacts Of Globalisation

Question 1

Explain how the Singapore government manages the economic impact of globalisation.

Answer 1

Attraction of FDAs and signing of FTAs

• to remain relevant, be competitive and sustain its economic growth, Singapore had to change from a labour intensive country in the 1970s to a knowledge-based economy in the 21st century
• In the transition, Singapore has been able to attract FDAs as global companies leverage on economic opportunities in Singapore and expand their business in Asia and the rest of the world
• signing of FTAs substantially reduces the amount of tariffs and increase the trade between Singapore and the partnering countries

For example

• in 2004 a FTA was signed between USA and Singapore which benefited a wide range of industries
• all this led to increased trade, generate more tax revenue, create better job opportunities and improve the economy of USA and Singapore overall

Question 2

Explain how Singapore companies manage the economic impact of globalisation

Answer 2

Constant innovation and reinvention by introducing new features into its products and services
- all businesses must always anticipate how a market might change and ensure that their products and services remain competitive and relevant to local/global demand

For example
- SMEs should also take advantage of the incentives offered by the Singapore government such as financial assistance in grants incentives and facilitating partnerships between SMEs and larger cooperations to be sustainable

Question 3

Explain how Singaporeans(Individuals) can manage the economic impact of globalisation

Answer 3

Can manage through participating and supporting the Singapore government’s Continuing Education and Training(CET) Masterplan which aims to support Singaporeans in remaining employable with new and better skills

For example
For older lower-wage workers, the Workforce Training Support(WTS) allows for them to upgrade their skills in order to remain employable, upgrade their jobs and earn higher wages through provision of incentives such as Enhanced Grant, Workfare and Training Commitment award