Issue 3: Globalization Flashcards
Define: Globalization
Interconnects countries through
- MNCS by setting up HQs/factories/sourcing materials from different locations, creating economic connections
- Transport increasing travelling speed and capacity of people and goods
- Technology through advancement in mobile communications and the internet
Negative economic Impacts on individuals (Def + 2 Egs)
Def: Increased competition for jobs due to access to foreign markets with cheaper labor and resources, move to cheaper locations
- Americans lose jobs to people in China and India who provided cheaper labor costs
- Uniqlo closed in Shenzhen, moved to Vietnam where costs were halved
Positive economic impacts on individuals (Def + 2 Egs)
Def: allows mobility and collaboration
- Video conferencing through internet
- Travel to other countries by plane/ train for overseas job prospects
Negative economic impacts on companies (Def + 2 Egs)
Def: MNCs have access to local markets, SMEs face competition
- SMEs face challenges of small domestic market and shortage of labor or expertise
- Companies need to consistently innovate/reinvent or lose market share and profit
Positive Economic impacts on companies (Def + 2 Egs)
Def: Operate in different locations, access to new markets with cheaper labor and resources
- American MNCs like PepsiCo popular around the world, dominating the market
- SG companies expand by offering a variety of goods in healthcare, food, fashion etc with the help of loan and grants from govt
Economic Downturn (Countries) (Def + 2 Egs)
Def: Withdrawal of investments or reduce in demands for goods and services, leading to less jobs and income
- In the 2008 Global financial crisis, US banks had unpaid loans and confiscated properties, had to close down
- Lehman Brothers filed for bankruptcy, affecting many countries’ economy
Economic Growth through FTAs (Countries) (Def + 2 Egs)
Def: Treaties between a countries to establish a free trade area for the trade of goods and services without tariffs or hinderances
- (Positive) Electronics and information technology, chemical industries benefit from US-Singapore FTA
- (Negative) Cheaper imported products lead to more competition for local products that can be more expensive
Impact of economic Growth through FDIs (Countries) (Def + 2 Egs)
Def: Investments in a Singapore company from a foreign company
- (positive) Attract foreign investors by enabling businesses to strengthen activities in SG and expand to other parts of the world
- (Negative) Little benefit for domestic businesses, little transfer of knowledge and skills, limited employment opportunities
Solutions to combat negative economic impacts on individuals (Govt soln) (2 Egs)
- CET masterplan, offering relevant training courses to SG workers
- Workfare Training support Scheme (WTS) allow for older/lower-wage workers to upgrade their skills to get higher paying jobs
Solutions/govt response to combat economic downturn (for individuals and companies) (5 Egs)
(Indiv)
1. Provide Opportunities to retrain/ learn new skills
2. Provide rental rebates to lower income families
(Companies)
3. Financing with reduced interest
4. Increasing subsidies for insurance premiums
5. Tax exemptions
Solutions to combat negative economic impacts on companies (4 Egs)
(govt soln)
1. Aid companies in venturing aboard, facilitate partnerships between SMEs and MNCs
2. Provide loans grants and tax incentives
(company soln)
3. Understand local conditions, offer products that appeal to locals - Goh Joo Hin Pte Ldt/New Moon offer a wide variety of up to date process foods following market trends
4. Play a complementary role to MNCs - MMI holdings supply hard drives to Seagate Technology
Define: Cultural Hybridization
Foreign and local cultures blend, resulting in unique a combination with elements from both cultures present
Define: Cultural Homogenization
Local Culture becomes similar to foreign culture, reducing influence of local cultures
Impacts of Korean entertainment (Def + 4 Egs)
Def: Hallyu Wave through TV, pop music, fashion
(Positive)
1. Girls Generation has an international fanbase created through Satellite television stations
2. Samsung overtook apple as largest smartphone vendor in 2020
(Negative)
3. Invasion of Korean culture lead to political tensions
4. Japanese protestors protested outside Fuji Television HQ for increasing number of Korean programs
Impacts of American entertainment (2 Def + 5 Egs)
(positive)
Def: American messages of freedom and individuality, empowering identities
1. American Soap operas show Asian women they can marry for love
2. American hip hop, improve in writing
3. Salsa, Latin-American music with a mixture of foreign Afro-Caribbean music and north American jazz and rock
(negative)
Def: Us cultured dominate 30% of culture worldwide
4. Kung Fu Panda, inaccurate portrayal of Chinese culture
5. France limited 40% of its TV programs to be French
6. China has an annual limmit of 34 foreign films
