The Impact of Globalisation on Singapore - Case Study Example

The Impact of Globalisation on Singapore Name Course Name and Code Instructor’s Name Date Table of Contents Table of Contents 2 Introduction 3 Economic Aspect 3 Cultural Impact 7 Environmental Impact 7 Conclusion 8 References 9 Introduction Globalisation can be defined as the international integration that arises from the interchange of ideas, products, worldviews and culture. Globalisation allows interchange of resources and culture across the world through either information technology or physically visiting the region. Globalisation affects a country differently and the purpose of this report is to discuss the impact of globalisation on Singapore. Economic Aspect Globalisation has played an important role on the economy of Singapore. The standards of living have improved because of policies and legislations associated with globalisation (Steger, 2009). For example, free trade has allowed the residents to sample different international and local brands, and through the process, the Singapore government improves the economy because of increased levels of income, which the government utilises in improving on health, infrastructure, education and defence. In addition, presences of numerous products and manufactures increases competition across the nations involved playing an important role on market and investment (Ritzer, 2011). Different countries across the world competes against each other with the aim foreign trade investments and in turn, the country creates employed that improves on the living standards of the citizens. Moreover, foreign investments increase foreign exchange and other factors that are associated to international business operations (Daniels, Radebaugh and Sullivan, 2007). In addition, globalisation in Singapore champions maximisation on talent in that persons can move from one country to the other in searching employment and leisure activities (Steger, 2009). The people of Singapore can easily utilise this platform to search for employments that are beneficial while others would participate in extra curriculum activities that results in earning of incomes (Daniels, Radebaugh and Sullivan, 2007). However, Globalisation affects the people because it widens the income gap between the poor and the rich (Daniels, Radebaugh and Sullivan, 2007). Globalisation contributes to spread of poverty due to intensive competition for the markets and investments. Foreign companies have immensely resources and they utilises these resources resulting in increase in their revenues while affecting the local companies (Ritzer, 2011). The foreign companies are better placed to draw resources, skilled people and investments when compared to Singapore companies and hence most of the profits are repatriated back to the mother country of the companies (Barbara, 2008). Nevertheless, the companies and businesses that are located in Singapore can access additional markets for their products. Globalisation creates a large market and the firms can produce more products with the aim of sustaining and increasing their revenues (Steger, 2009). In addition, the Singapore companies and businesses benefits from economies of scale, which translates to reduction of production costs resulting in increase of revenues for these companies that are involved. Moreover, such approaches results in multiplier effects wherein improvement in revenue collection results into additional benefits to the society and the economy of the region (Daniels, Radebaugh and Sullivan, 2007). For example, more revenues results in increase in employment opportunities translating in improvement of living standards of the people of Singapore. Globalisation is also important when it comes to sourcing of raw materials for their products. Globalisation provides an opportunity whereby access to sources from across the world is made easier and these ram materials can be achieved cheaply because of specialisation (Ritzer, 2011). Moreover, it is easier for these firms to purchase of regions with cheapest materials based on global sourcing principle. This approach reduces the cost of production while increasing revenues, hence more profits, and benefits for the stakeholders (Daniels, Radebaugh and Sullivan, 2007). Even though globalisation benefits the local society, over standardisation of services and products may hinder further development (Daniels, Radebaugh and Sullivan, 2007). For example, many businesses across the world that utilises computers employ the use of Microsoft’s Windows operating system (Steger, 2009). Standardisation of produces and services is beneficial to the society and economy but it is prone to more threats (Joshi, 2009). Standardisation contributes to lack of production diversity, creation of barriers to entry to competitors or smaller producers (Austin and Sallabank, 2011). This shows globalisation is important but sometimes can affect the way smaller or local businesses can compete against developed companies or producers (Ritzer, 2011). Multinationals also may institute measures and approaches that may inhibit the way the local business operates. The organisation that champions globalisation usually bases their analysis on the changing operational requirements such as the cost of product and labour (Daniels, Radebaugh and Sullivan, 2007). These multinational companies choose between the countries based on favourable regulatory regimes and such strategies inhibit the way a society operates (Steger, 2009). The multinational companies may decide to operate as local companies dictating the labour policies and pushing the salaries and wages lower when compared to free market equilibrium (Daniels, Radebaugh and Sullivan, 2007). Such practices affect negatively the employment opportunities and labour industry in Singapore. Apart from controlling and manipulating the salaries and wages, the international organisations become threat to job opportunities. The domestic market may loss jobs because the organisations may decide to produce some of the products from their home country and hence preventing the local communities from been employed (Ritzer, 2011). For example, the international organisations may bring customised products and they just of to assemble rather than producing at the host region (Daniels, Radebaugh and Sullivan, 2007). In utilising such approaches and their resource strength, local industries and businesses may decide to close shop and hence loss of employment opportunities. Globalisation brings together countries and creates interdependence of economies (Austin and Sallabank, 2011). The continuous and increasing relationship between Singapore and other countries possess some significant threat to the Singapore economy (Steger, 2009). For example, if one country experience negative economic shock, the other countries within the interdependency principle are also affected negatively. For example, the mid 1990s financial problems in Asian countries because of failure of some Japanese banks or the United States of America subprime housing market problem triggered numerous complications that affect numerous countries across the world (Daniels, Radebaugh and Sullivan, 2007). In addition, overspecialisation by one country may affect the economy of that region if a negative aspect occurs to the economy of the region. Hence, globalisation may destabilise the economies of many countries and regions. Cultural Impact Globalisation for Singapore affects both negatively and positively the society. Positively, the people of Singapore become more aware of foreign culture (Ritzer, 2011). Through globalisation, the people of Singapore are aware of different cultures and it has made the people to learn about culture and history of other nations. Negatively, globalisation contributes to loss of local culture (Steger, 2009). Some multi corporations are introducing products and services that spread pop culture to the people of Singapore (Daniels, Radebaugh and Sullivan, 2007). In addition, globalisation is viewed by many people of influencing their youths in a negative manner and contributes to lose of local culture interests. Environmental Impact The environment is another sector that is affected because of globalisation. Globalisation contributes to environmental degradation especially when it comes from deforestation and related problems. Globalisation requires both land and water to operate effectively (Steger, 2009). Due to scarcity of land, government provides space for these companies and the location of these companies affects negatively the environment. Some industries require more water and such demands affects the way the society and local communities can utilise the resources (Sorrells, 2012). In addition, the movement of goods and services from one region to the next contributes to global warming. These goods and services are moved on ships and planes and these transport means produce huge amounts of greenhouse gases that affects the entire environment (Austin and Sallabank, 2011). However, globalisation improves on the environment through championing environmental management strategies (Ritzer, 2011). Globalisation has increased awareness towards environment management and dictates the amount of energy that is required (Steger, 2009). Many of these businesses require energy and through environmental management, environmental strategist has encouraged sustainability and conservation of sources of energy. In addition, globalisation has offered opportunities of utilising alternative sources of energy towards sustaining the environment (Daniels, Radebaugh and Sullivan, 2007). Conclusion In conclusion, globalisation is inevitable and Singapore is not prone to the benefits and threats associated with globalisation. Some of the threats to Singapore include erosion of culture and environment, economic disability and loss of employment. On the other hand, the benefits associated to globalisation in Singapore include increased business operations, improvement of living standards due to creation of employment and cheaper products, and encouraging environment management strategies. Generally, globalisation is important but the Singapore government and people should devise and implement strategies that reduce the impacts of negative consequences while championing the positive benefits. References Steger, M. 2009. Globalization: A Very Short Introduction. New York: Oxford University Press Ritzer, G. 2011. Globalization: The Essentials. New York: John Wiley & Sons Sorrells, K. 2012. Intercultural Communication Globalization and Social Justice. Thousand Oaks: Sage Pubs. Daniels, J., Radebaugh, L., and Sullivan, D. 2007. International Business: environment and operations, 11th edition. New York: Prentice Hall. Joshi, R. 2009. International Business. Oxford: Oxford University Press Austin, P., and Sallabank, J. 2011. "Introduction". In Austin, Peter K; Sallabank, Julia. Cambridge Handbook of Endangered Languages. Cambridge: Cambridge University Press. Barbara, C. 2008. International legal personality: Panacea or pandemonium? Theorizing about the individual and the state in the era of globalization. Saarbrücken: Verlag Dr. Müller Read More