U8: Globalization Page:55-58 half Flashcards Preview

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Flashcards in U8: Globalization Page:55-58 half Deck (19):
1

Definition of Globalization (Page 55)

This is the name for the process of increasing connectivity and interdependence between Singapore and the rest of the world internationally and regional parts for example: SEA & ASEAN markets and businesses because of dramatically sped up technological advances in the telecommunications infrastructure and the Internet.

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Benefits of globalization (Page 55 -56)

1. Increased Trade
2. Increased Investment
3. Developed countries benefit

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Constraints of globalization (Page 56)

1. Environmental Costs
2. Labour Drain
3. Less Cultural Diversity

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1A Increased Trade: Definition

1 Increased trade

Globalization enables [greater trade and competition between different economies], leading to [lower prices, greater efficiency and higher economic growth.]

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Increased Trade: Free Trade

Free Trade is a way for countries to exchange goods and resources. This means [countries can specialise in producing goods where they have a comparative advantage] (this means they can produce goods at a lower opportunity cost).

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Increased Trade: When countries specialise there will be several gains from trade.

Benefits/Advantages from trade.

1. Lower prices for consumers.
2. Greater choice of goods.
3. Bigger export markets for domestic manufacturers.
4. Economics of scale through being able to specialise in certain goods. /Benefits gained from producing goods at one scale.
5. Greater competition.

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2A Increased Investment

Globalization has also enabled increased levels of investment. It has made it easier for people to attract short term and long-term investment, Investment by multinational companies can play a big role in improving the economies of developing countries.Globalisation has also enabled increased levels of investment. It has made it easier for people to attract short term and long-term investment. Investment by multinational companies can play a big role in improving the economies of [developing countries].

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3A Developed countries benefit

Globalization [benefits developed countries], [as industries in developing countries need to be able to develop.] The [rapid growth of the economies] has made the region attractive to foreign investors, with [promising economic and financial gains.]

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1D Environmental Costs

One [problem of globalization] is that it has [increased the use of non-renewable resources.] It has also contributed to [increased pollution and global warming].

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2D Labour Drain

[Globalization enables workers to move freely.] Therefore, [some countries find it difficult to hold onto their best skilled workers, who are attracted by higher wages elsewhere.]

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3D Less Cultural Diversity

Globalisation has led to [increased economic and cultural influences.] There is arguably less cultural diversity because [specific cultures are now blurred] as [people adapt/accept/assimilate one another’s cultures/practices.] Hence [we are less distinct in our identification to a particular race/culture.]

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Key developments in globalization (pg 57)
The two most prominent pro-globalization organizations are the: (INTERNATIONALLY)

1) World Trade Organization: (WTO)
2) World Economic Forum: (WEF)

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Key developments in globalization (pg 57)
1) World Trade Organization (WTO)

The World Trade Organization was set up to formulate a set of rules to govern global trade and capital flows among member countries.

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Key developments in globalization (pg 57)
2) World Economic Forum: (WEF)

The World Economic Forum is an effective and powerful networking forum for many of the world’s business, government and not-profit leaders.

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(Regionally) the Association of Southeast Asian Nations Free Trade Association (ASEAN FTA)

Nearer home, the launch of the Association of Southeast Asian Nations Free Trade Association (ASEAN FTA) has brought about closer intra-regional cooperation among member countries, resulting in a regionalisation towards the growth triangle of Singapore, Malaysia and Indonesia.

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Factors contributing to globalization in Singapore (pg 57)

1. Pragmatic business-oriented government (PROBIZ)
2. High quality human capital
3. Extensive infrastructure improvement
4. Greater national commitment towards establishing a free trade region
5. Inflow and outflow of direct foreign investment
6. Increasing numbers of state-owned enterprises
7. Rising private consumption

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Implications of globalization for the individual employee (pg 58) 1 of 2

- People will have greater access to employment opportunities.
- Effective labour and employment policies will enhance an individual’s adaptability to the labour force, and improve trade and investment activities that will eventually benefit the work force.
- There is increasing accessibility to quality education and skills training.

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Implications of globalization for the individual employee (pg 58) 2 of 2

- Individual employees will have more opportunities to be posted overseas to work.
- Employees will also benefit from learning the social cultures of the foreign country and get to interact with their peers.
- Employees also need to be mindful that they face greater competition from foreign workers. Therefore, they need to constantly upgrade themselves to remain employable.

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Implications of globalization for the individual employee (pg 58)

- People will have greater access to employment opportunities.
- Effective labour and employment policies will enhance an individual’s adaptability to the labour force, and improve trade and investment activities that will eventually benefit the work force.
- There is increasing accessibility to quality education and skills training.
- Individual employees will have more opportunities to be posted overseas to work.
- Employees will also benefit from learning the social cultures of the foreign country and get to interact with their peers.
- Employees also need to be mindful that they face greater competition from foreign workers. Therefore, they need to constantly upgrade themselves to remain employable.