Notes

Singapore's Strategies to maximise opportunities and overcome challenges in a globalising world:
-Diversifying the Economy
SG aims to be a centre for technology intensive, high value-added manufacturing activities such as chemical engineering, pharmaceuticals and life sciences.
Furthermore, SG aims to be regional hub for education and tourism. Towards this end, leading international universities have been allowed to set up branches here. Two integrated resorts are also built in Marina Bay and Sentosa to fence off competition from neighbouring countries.
As a result, developing various sectors of the economy will help to reduce SG's dependence on a single industry market.
The investments are put equally instead of focusing in one area.
By allowing to do so, it reduces the risk of being affected by recession.
It will also mature demostic economy which results in stability of economy.
By doing so, it will boost the economy as more TNCs foreign investments will be attracted due to stability of economy.
SG will also remain competitive as there will be more foreign talents.
Therefore Diversifying the economy is one of the strategies to maximise opportunities and overcome challenges in a globalising world.

-Nuturing Growth of SMEs
Nurturing the growth of small and medium enterprises (SMEs) can help to overcome the challenges in a globalising world. SMEs are important providers of jobs and support TNCs' operation such as supplying components.
It also enhances SG's image as regional manufacturing and service hub. For instance, there are many F&B companies in SG such as Polar Cafe, Bengawan Solo and Yakun.
Although, there also challenges to this SMEs as they might lack of resources to compete with bigger companies, low technology, outdated operations, family-run business may result in shortage of skill professionals, small domestic market and lack of capital to venture abroad.
However, the SMEs aid these challenges by loaning from banks, conduct seminars and workshop on how to run businesses, net working opportunities, govt incentives such as entrepreneur of the year award, tax exemption of first 100k inc
As a result, it reduces the effect of economic slow down in Sg as SME are local based companies which still generate income for SG even if TNCs are gone.
SME also generate jobs and provide employment opportunities which results in social stability
As such, with Social stability, SG can still enhance the attractiveness as service hub.
In this way, SG will remain competitive in economic growth.
Therefore, nurturing SMEs is one of the strategies.

-Venturing abroad:
With limited land and resources, SG has to look beyond our national boundary to achieve future growth.
This is achieved through regionalisation, which means investing in nearby countries that have abundant land,lower labour costs and new markets.
Such cooperation not only benefits the countries involved, but also promotes development in the region.
For instances, SG govt and SG-based companies provide expertise and capital... Developing industrial parks in host countries such as Vietnam-SG IP
As a result, SG benefitted from strategic locations which are highly accessible to major cities.
As there are rich investors and resources in major cities, the investors will be attracted to invest in SG companies
Hence, there will be increase in capital and expertise, sg can also benefit low labour cost in other countries which would cut down production rates and increase profits.
It also ensure SG's economic growth is maintained .
Therefore, venturing abroad in one of the strategies.



Impact of Globalisation:

Economic:
Positive;
-Improvement in standard of living.
Globalisation has generated much wealth and prosperity due to the increased economic activity and opportunities it has created for business and economies.
People enjoy higher standard of living as gov. use increase revenue on education,health,defence,housing and transportation.
people also enjoy better quality of life as globalisation results in more product choices available in the market.
-Improve employment opportunities
skilled professionals are able to move to other countries in search of better employment opportunities and higher standard of living.

Negative:
-Widening income gap between the poor and the rich.
while many countries have enjoyed the rapid development of globalisation, it has also contributed to the spread of proverty.
wealth of the rich countries generated by international trade and manufacturing, thus the profit goes back to TNCs.
Proverty of countries caused by trade restrictions, production of low-value goods and services and retrenchment.
-Increase competition among nations
there is much competition between countries to lower cost of production in order to attract TNCs investments, which has the effect of destroying local business and causing unemployment.
developing countries frequently lose their best talents to countries that can offer better opportunities. this has the impact of hindering the country's progress.
As a result, with globalisation it has result in both positive and negative economic impacts.
with positive impact in improving of standard of living, it allows for better quality of lives with many choices. this is a result of improvement in employment opportunities.
with employment opportunities people will have a stable income and job
However, not everyone will enjoy the positive impact of Globalisation as it also resulted in widening income gap between the poor and the rich. the widening of income gap is a result of competition among people and nation.


Social:
Positive;
-Increased awareness of foreign culture
increased travel and access to the internet have heightened people's awareness of other people's way of life, history and culture.
negative:
-Loss of local culture;
Existence of global brands such as Starbucks tend to dominate the consumer market in developing countries, creating largely homogenous culture around the world.
eg. pop culture such as MTV, Hollywood, compete with local traditions, culture, beliefs, and language.

As a result, with globalisation it has resulted both negative and positive social impacts.
with positive impact of increased awareness of foreign culture, it allows people from around the world to increased knowledge about the history and culture of other people and this also allow better appreciation & relations between different people.
However, with increasing awareness of foreign culture it also led to the loss of local culture. Thus, this influence the youth negatively as they are attracted to popular culture and slowly lose interest in their own local culture. Hence, many people will feel that the countries where popular culture comes from are forcing their beliefs, culture and languages upon their local culture.


Environment:
Positive;
-Environment Management
greater awareness among countries that sustainable development is the key to the future growth. Hence, it is important to preserve the environment so that future generations can have enough resources to meet their needs.
Challenged that energy use is expected to grow by more than 50% over the next 25 years in order to sustain the development of countries such as China and India.
Increased awareness of the importance of conservation and finding new source of energy.
-Alternative Sources of energy
globalisation can lead to sharing of technology to search for and uterllise alternative sources such as wind, solar and geothermal energy.
currently, such alternatives are not always possible for countries.
Negative;
-Environment degradation
rainforests are seen as cheap sources of land. they are frequently destroyed for development of industries, agriculture, transportation and housing. since 1970, more than 600,000 square km of rainforest has been destroyed for development purposes.
In indonesia, forest are disappearing due to clearance for cash plantations and development projects, leading to environmental problems such as soil erosion, animal and plant extinction, increased flooding, landslides and air pollution.
-Global warming
increased movement of goods has led to greater quantities of greenhouse gases such as carbon dioxide and nitrogen oxides from aeroplanes, ships and other form of transport.
Factories also emit an enormous amount of gases everyday.

As a result, Globalisation has resulted in both positive and negative environment impact .
with positive impact in environment management it will allow people to be more aware of the environment so that people will know how to sustain the environment so that future generations will have enough resources to meet their needs.
with more awareness that resources may run out, will search and share technology, ideas on alternative sources of energy on how to sustain the environment.
However, due to increasing economic activities, transportation also emit large amount of harmful gases that led to global warming and do harm to the environment that we are living in.