Globalisation

Case Study: Singapore as an NIC

Stage 1: traditional society labour-intensive industries

Stage 2: import substitution industries: reduction of expensive
imports by development of home industries, protectionist policies in
place
Protect local economy from foreign competition
Local infant industries need time and shelter to grow
before foreign industries can enter
Stage 3: export-oriented industries: high technology, capitalintensive industries
Stay competitive and learn from others
Attract FDI
Set up JTC (infrastructure) and EDB (advertising, marketing,
administration)
Practice of assembling and manufacturing various goods
from raw material stage
Privatisation: Singapore Telecoms Singtel: telecommunications
industry opened up even further by allowing more competition eg.
Starhub, M1
Entrepreneurship
+
innovation:
globalisation
of
Creative
Technologies: bought over American Music synthesizer company
Kurzweil to boost its hold in computer sound-making market
Strengths
Higher level of IT, higher literacy, good infrastructure
Produce more creative ideas / innovative applications of
technology
Weaknesses
Small size: lacks large market to develop full-scale
economy structure Singapore needs 8m people to
achieve good critical mass foreign talent
Vulnerability to global economic climate: due to
Singapores strong trading emphasis high dependence on
US market
Competition from neighbouring countries