Economic Impacts of Globalisation

Question 1

What are the economic impacts of globalisation on countries?

Answer 1

Economic Growth
* After independence in 1965 , Singapore faced a high unemployment rate. In response, the **government sought to attract foreign investments in labour-intensive industries such as garment manufacturing and shipbuilding. **Foreign investment led to economic growth in early Singapore as it brought in foreign equipment, talent and expertise. This increased the country’s production capabilities and provided more jobs with higher wages.
Economic Vulnerability
* The ongoing conflict between Russia and Ukraine has caused disruptions in global supply chains, resulting in shortage of grain and rising food prices as these two countries are key exporters of wheat. A ban on Russian energy exports has also led to soaring energy prices.

Question 2

What are the economic impacts of globalisation on individuals?

Answer 2

Employment Opportunities
* The 10 biggest MNCs in Singapore create around 30,000 local professional, manager, executive and technician jobs. **In 2017, Dyson opened its HQ in Singapore. It offered 1920 job positions to individuals such as digital experts and engineers. ** Countries’ openness to the global economy improves businesses. This creates more jobs and provides livelihoods for individuals in the country. The presence of MNCs and increased investments also encourage use of advanced technologies, leading to creation of high skilled and high wage jobs.
Employment Challenges
* In 2018, Uniqlo pulled out some of their factories from China and shifted operations to Vietnam due to the lower cost of labour in Vietnam. When Uniqlo relocated, it meant that workers in China lost their jobs. This means that their livelihoods will be negatively affected as they do not have an income. This leads to a poorer quality of life.

Question 3

How can Individuals respond to the economic impacts of Globalisation?

Answer 3

The SkillsFuture Credit offers direct subsidies of $500 to all Singapore citizens over the age of 25 for approved upskilling courses. In 2016, over 126,000 Singaporeans used this credit to upgrade themselves. By continually upgrading their knowledge and skills through programmes such as SkillsFuture, individuals can** remain relevant in the job market**, which is vital in a globalised world where jobs requirements are rapidly evolving.

Question 4

How can goverments respond the the economic impacts of globalisation?

Answer 4

• One way is to pursue policies that promote free trade by signing free trade agreements (FTAs). On example is the Singapore-Australia FTA. Under this agreement, tariffs on all imported goods are removed and the period of stay granted to business visitors between the two countries increased from one month to three. FTAs help countries trade more freely with other countries, which can increase business activities between both countries, leading to greater economic growth for both countries.