Globalisation
Environmental
Key Driving Forces of Globalisation
1. Developments in transportations
-Improvements in transportation technology in 19 th century
-Inventions of railway and steamship
-Ocean-going vessels and containerisation
-Simplified the transfer of goods from ships to trucks, one standard size
-Reduced time and cost greatly
+Increased movement of people and goods from one place to another
+World becomes more interconnected
2. Developments in communications
-Satellite technology enables transmission of messages from one
location to another simultaneously
-Dial-ups in the past, a lot slower than broadband internet connection
-Optical fibre systems have large carrying capacity
-Can transmit information at high speeds
+People across the glove can share information, knowledge and ideas
despite being so far away from each other
3. Transnational Corporations (TNC)
-Set up operations in different locations around the world
-Worldwide operations controlled and coordinated by headquarters
+They are the ones who coordinate and control economic activities
around the world
+They made the world more interconnected and integrated
Impact of Globalisation
1. Economic
+Improved standard of living
-Singapore has pro-globalisation policies
-Singapore willing to trade, opened doors to foreign investment
-Singapore earn more revenue
-Singapore government uses revenue to improve education, health,
defence, housing and transportation
-Singaporeans enjoy higher standard of living
-Higher income, wider variety of goods for purchase, more choices of
lifestyle
-Singaporeans support globalisation
+Increased competition among nations
~Investment and Market
-Countries compete to attract TNCs which lower their cost of
production by seeking out locations worldwide
-Seaport competition between Singapore and Malaysia
-Airport competition between Singapore and Bangkok
~Talent
-Globalisation enabled people to move around to look for jobs
-Companies can look for talented people around the world
-Countries try to attract as many foreign talents as possible
-Countries with local talents try to retain their own talents
-India facing brain-drain situation
-Solved it by having more opportunities for their local talents
+Widening income gap between rich and poor
-Developed countries have TNCs
-More education and skilled job opportunities
-Continue developing
-Poor countries have low-skilled workers
-Made use of by TNCs and developed countries
-Continue to remain in poverty
-Even in a developed country, there is widening income gap. Rich get
richer, poor get poorer. Tension can lead to social problems.
2. Social
+Awareness of foreign culture
-In a globalising world, people travel a lot
-Meet others of different races and cultures
-There is a lot of exposure and exchange of information
-People become more aware and understanding
+Loss of local culture
-Large corporations bring in standardised methods of operation
-Creates a homogenous culture across the world
-Local/Traditional cultures start to become lost
3.
+Environmental management
-People realise the need to protect the environment
-Conservation of energy and research on alternative energy sources
such as wind energy, geothermal energy and solar energy
+Environmental degradation
-Increased development of industries, agriculture, housing and
transportation
-These all use up a lot of natural resources
-Deforestation for land
-Global warming due to burning of fossil fuels and from vehicles
Strategies taken by Singapore
1. Diversifying the economy
-Singapore aims to be both a manufacturing hub and a services hub
-Manufacturing Hub
+Technology-intensive
+Research and development institutes
+Attract TNCs to Singapore
-Services Hub
+Tourism has competition from neighbouring countries such as
Bangkok, integrated resorts are built
+Education standard in Singapore is very high, thus attracting foreign
students and foreign investments. International universities are set up
2. Nurturing the growth of Small and Medium Enterprises (SME)
-SMEs face problems such as not being able to compete with TNCs
-Association of SME (ASME), tax exemption, bank loan schemes
3. Venturing Abroad
-Singapore needs to venture abroad to achieve further growth
-Includes investing in nearby countries with land, cheap costs, market
-Singapore invest in neighbours
-Singapore cooperate with neighbours so both countries benefit
-New markets include Middle East, Africa, Latin America, Europe
4. Expanding market reach through economic cooperation
-Free Trade Agreement (FTA) signed to cut costs and broaden market
-Special Economic Zones (SEZ) are regions in another country that has
less strict economic laws that other parts of the country. Trade is easier
5. Managing resources
a. Developing people
-Promote local entrepreneurship and technopreneurship
-Promote continual learning in the workforce
b. Attracting foreign talents
-Bring more foreign contacts
-More business and job opportunities
-Add diversity to cultural landscape
c. Managing the environment
i. Managing limited resources in Singapore
-Plan the use of land carefully for many things
-Housing, transportation, defence, education, recreation, etc.
-Plan to ensure nature sites are preserved
-Land for waste disposal
ii. Cooperating with regional and international organisations
-Regional include ASEAN
-Meet and work together against issues like haze
-International include signed international agreements to stop the use
of chlorofluorocarbons (CFCs)
iii. Providing public education
-Both in school and public
-Campaigns such as Clean and Green Week, Bring Your Own Bag Day