chap 9:

Cards (30)

  • How do FDIs have a (+) economic impact on countries?
    • SG can attract foreign investors due to stable political climate and good governance
    ->SG direct investment abroad expanded by US$12 billion in Dec 2022
    ->Foreign Portfolio Investment increased by US$ 9.9 billion in Dec 2022
    : SG companies have financial means to expand. Profits for local firms will increase, generating more tax revenue and create more job opportunities leading to economic growth
  • How do FTAs have a (+) economic impact on countries ?
    • Treaties between countries to establish free trade areas where exchange of goods and services is without tariffs
    ->SG forged extensive network of 27 implemented agreements, like signed bilateral agreements with China, Japan, Korea and US

    : It reduces import- related costs, FTAs benefit consumers as they can now purchase higher quality foreign goods for lower prices
    : FTAs also benefit firms as they can now import raw materials and supplies at a lower price, reducing business- related costs
  • Why would economies be negatively affected by globalisation ?
    Economies around the world are closely linked and interconnected in a globalised world hence the decline of a major player can impact others
  • Examples global events impacts economy
    • Covid 19
    ->China's border controls led to the fall in tourists visiting SG
    ->SG's economy was impacted by the loss of tourists spending on areas such as attractions, food and accommodations
    • Russia Ukraine War
    ->SG highly dependent on energy imports, especially natural gas and oil
    ->The disruptions in the global energy market could lead to increased prices for these commodities, impacting the cost of production and transportation within SG
    ->This causes increased inflation, affecting consumer spending and business
  • Why would global events negatively impact country ?
    • When one country faces a downturn, it affects other countries. Countries may withdraw its investments or reduce its demand for goods and services, reducing less economic growth
    • With less economic growth, countries will find it harder to bounce back from such periods and this is an added burden as they need to rectify major economic problems such as employment and loss of investment
    • No funds to develop key industries as need to be directed to solve root problems
    • MNC's may relocate business to save cost resulting to unemployment
  • How does globalisation create new jobs ?
    • Fosters jobs creation by broadening businesses' access to global markets, increasing demands for the country's products and services
    • Facilitates job opportunities because transportation and technological advancements, allowing individuals to seek employment opportunities abroad that match their skills and interests
    • MNCs and increased investments like FDIs encourage use of more advanced technologies
    ->DBS bank launched a digital banking initiative, resulting in the hiring of additional staff for its digital banking division
  • How can globalisation have a (+) impact on countries ?
    • Foreign Direct Investment (FDI)
    • Free Trade Agreement (FTA)
  • How can globalisation have (+) impact on individuals ?
    • Create new jobs
    • Attain higher incomes
  • How can globalisation have a (-) impact on countries ?
    Triggering an economic downturn
  • How has globalisation allow individuals attain higher income ?
    It made it easier for people to travel from one part of the world to another, people can look for jobs overseas that have better job prospects, and better benefits such as extra allowance and free accommodation.
     
    ->Most Icelandic companies have policies which offer new fathers up to 120 days of paternal leave with up to 80% pay, as compared to Singapore’s 2 weeks of paternity leave.
  • Why is creation of new jobs benefitting individuals ?
    employment opportunities are generated, ensuring the sustenance of livelihoods for individuals within the nation or abroad
  • Why is attaining higher incomes benefitting individuals ?

    • People are not limited to job opportunities in their own home countries but have the freedom to find employment around the world
    • This is especially important for people who live in developing economies, as they may not have access to high-paying jobs in their home country
    • It is also important for people in developed economies who wish to work and live somewhere else for other reasons, such as a different culture or better work-life balance
     
     
  • How has globalisation (-) impacted individuals ?
    Causing lower incomes by
    • Job displacement
    • income inequality
  • How does globalisation cause job displacement ?
    • It increases the mobility of workers and jobs, increasing competition which affects individuals
    • With greater movement of labour as individuals relocate to work in other countries, local workers in those countries may face greater competition from foreign labour in the job market.
    • Those who cannot keep up with the evolving job requirements in various industries may feel challenged navigating our globalised world.
  • How does globalisation cause income inequality ? 

    • Greater use of technology for work and changes in the business operations of MNCs can also disrupt people's jobs and wages
    • Workers with specialized skills or higher education levels often benefit from globalization through increased job opportunities and higher wages, while those with lower skills may face stagnant wages or job insecurity
    ->Singaporeans who work as bus captains or wait staff at restaurants would find their wages depressed as they must compete with a lot of foreigners who are willing to accept a lower wage
     
  • Why is having lower incomes a (-) impact on individuals ?
    • Locals may lose their jobs or see their wages stagnate for a long time
    • If they are unemployed and are unable to find jobs for too long, it may affect their quality of life, as their spending power decreases, and they may find it difficult to lead a decent lifestyle
  • What are some responses to economic impacts of globalisation ?
    • Government support
    • Acquisition of knowledge and skills by individuals
  • Why does government support help ease the impacts of globalisation ?
    They play a crucial role in mitigating and managing the impact of globalization
  • How can the government support individuals affected by the impacts of globalisation ?
    • Economic cooperation with other countries
    • Attracting and making foreign investments
    • Providing financial support and developing local expertise
  • What does economic cooperation with other countries mean ?
    • Pursuing policies that promote tariffs being removed or reduced between trading countries or implement free trade
    • This can be achieved by signing free trade agreements (FTAs), which refer to treaties between two or more economies to make trade and investment between them easier
    • FTAs typically agree to reduce or remove taxes imposed on imported goods between countries to allow imports and exports to be traded more freely and at lower costs
  • What does Attracting and making foreign investments mean ?

    • Trade agreements and free trade policies can make a country more attractive to foreign investors by providing assurances of market access and a stable trade environment
    • Foreign investors are often more willing to invest in countries that have liberalized their trade regimes and are part of broader regional or global trading blocs
    ->The Monetary Authority of Singapore’s central bank ensures slow and stable inflation which helps to attract foreign investors.
  • Why does economic cooperation with other countries help with the economics impact of globalisation ?
    Government allows Singapore business to diversify exports and foster new business partnership. This will result in fostering regional integration, and enhancing competitiveness in the global marketplace.
  • Why does attracting and making foreign investments help with the economic impacts of globalisation ?
    • It helps businesses to adopt or transform their operations to become more resilient to the distributions and economic vulnerabilities brought about by globalisation.
    • By ensuring low and stable inflation they ensure that Singapore remains an attractive place for investors.
  • What does acquisition of knowledge and skills mean ?
    • Continuous learning and skill development
    • Adaptability and flexibility
    • Financial planning and management
  • What does continuous learning and skill development mean ?
    • Upgrading their skills and knowledge to remain competitive in the job market.
    ->Using skill future for pursuing higher education, vocational training, or acquiring new certifications relevant to emerging industries.
  • What does adaptability and flexibility mean ?
    • Individuals need to be adaptable and flexible in their career paths.
    • This might involve being open to new job opportunities, considering freelance or remote work arrangements, or even exploring opportunities in different industries or countries.
    ->While Labour sector is cooling down jobs are still available in information technology and banking sectors. Therefore, jobseekers are making mid-career switch.
  • Why does adaptability and flexibility help with the impacts of globalisation ?
    It empowers them to remain pertinent in evolving job markets and pursue new career opportunities effectively.
  • Why does continuous learning and skill development help with the impacts of globalisation ?

    This better prepares individuals to stay relevant and seek new jobs
  • What does financial planning and management mean ?
    Individuals must plan so that they can save and invest appropriately, so that they have the resources to provide for themselves and their families during period of unemployment or loss of income.
  • Why does financial planning and management help with the impacts of globalisation ?
    It can enable individuals to take control of their economic destiny and mitigate the risks associated with job insecurity.