Responses to the Economic Impacts of Globalisation

28 vocabulary flashcards covering key terms, institutions and concepts related to globalisation’s economic impacts and responses, as discussed in the lecture notes.

Globalisation

The increasing interconnectedness and interdependence of world economies, cultures and populations through trade, investment, technology and migration.

Foreign Direct Investments (FDIs)

Long-term investments where businesses from one country establish or expand operations in another, bringing capital, jobs and knowledge transfer.

Economic Growth

An increase in a country’s output of goods and services, commonly measured by rising GDP, often spurred by trade, investment and technology.

Economic Vulnerability

A country’s susceptibility to external shocks—such as recessions or conflicts—caused by its dependence on global markets and supply chains.

Interconnectedness

The degree to which economies, firms and individuals are linked through trade, finance, technology and information flows.

Transfer of Knowledge

The movement of skills, expertise and technological know-how from one firm or country to another, often via FDIs or partnerships.

Capital (Economic)

Man-made resources—machinery, tools, buildings—used in production to increase scale, speed and efficiency.

Gross Domestic Product (GDP)

The total market value of all final goods and services produced within a country in a given period.

E-commerce

Buying and selling goods or services over electronic networks, expanding firms’ reach to global consumers at lower costs.

Free Trade Agreement (FTA)

A treaty between two or more countries that reduces or eliminates tariffs and other trade barriers to boost cross-border commerce.

Bilateral FTA

A free trade agreement signed between two countries, e.g., the Singapore-Australia Free Trade Agreement (SAFTA).

Multilateral FTA

A free trade pact among three or more parties, e.g., the EU-Singapore Free Trade Agreement (EUSFTA).

Employment Opportunities (Benefits)

New and higher-skilled jobs created through economic growth, foreign investments, and global labour mobility.

Employment Challenges (Costs)

Job losses or wage pressure arising from relocations, automation and increased competition in global labour markets.

Multinational Corporation (MNC)

A firm that owns or controls production or service facilities in more than one country, e.g., Apple or Uniqlo.

Technological Advancements

Innovations in machinery, ICT and transport that lower production costs and enable wider market access.

Monetary Authority of Singapore (MAS)

Singapore’s central bank, tasked with maintaining low, stable inflation to keep the country attractive to investors.

Government of Singapore Investment Corporation (GIC)

A sovereign wealth fund that invests Singapore’s foreign reserves globally to generate long-term returns and spur growth.

Economic Development Board (EDB)

A government agency that promotes investments and supports industries to enhance Singapore’s economic competitiveness.

Stabilisation and Support Package

A S$4 billion government aid package launched during the pandemic to protect jobs and sustain livelihoods.

SMEs Go Digital Programme

A 2017 initiative helping small- and medium-sized enterprises adopt technology to stay competitive globally.

Economic Cooperation

Collaborative actions—such as FTAs—taken by governments to boost trade, investment and shared prosperity.

Adaptability (Skills Upgrading)

The practice of continually learning new skills and being open to career shifts to stay relevant in a fast-changing economy.

Singapore-Australia Free Trade Agreement (SAFTA)

A bilateral FTA that removes most tariffs and deepens economic ties between Singapore and Australia.

European Union-Singapore Free Trade Agreement (EUSFTA)

A multilateral pact that enhances trade in goods and services between Singapore and EU member states.

China-Singapore Free Trade Agreement

A bilateral treaty facilitating tariff reductions and investment flows between China and Singapore.

Economic Interdependency

The mutual reliance of national economies on each other’s markets and resources, amplifying both benefits and risks.