issue 3 (globalization)

chapter 7

factors that drive globalization

improvements in speed

• goods travel for longer distances, in shorter amounts of time

• the development of the Shinkansen which can cover a distance of 3784km, at maximum speeds of 320 km/h

• the developments of the world’s first railway system in 1830, the Manchester-Liverpoor Rail System, could only cover a distance of 50 km at speeds of 48 km/h

improvements in cost

• with the improvements in technology, the costs for producing new technology which allowed for transport decreased, resulting in the decrease of prices of travelling

• 1950s→ flying was considered a luxury which only the business traveller or the affluent could afforc

• 1990s→ low-cost carriers made flying more accessible to the average person, which allowed for more people to travel

improvements in capacity

• allowed for the transportation of more freight and people worldwide

• 1800s→ merchant ships did not have muh carrying capacity due to the immense size of their engines and fuels, and was unable to import and export goods at large volumes

• 1950s-1960s→carrying capacity skyrocketed, with ships carrying 25k-600k tonnes of goods, the development and popularization of containerization, which is a method of transporting freight in larger volumes, this reduced shipping costs as it made cargo handling easier in ports

improvements in digital communication

• development of digital devices have facilitated the establishment of interconnections made between the ideas and activities of people living in different parts of the world, as it eliminates the having to wait

• 1880s→maritime transported allowed for the transportation of letters as they could be transported by ships, but it would take months for letters to arrive and they often got lost at sea

• 1830s→ development of the telegram allowed for electrical signals to be transported via a wire which connected 2 telegraph stations

• 1870s→ development of the telephone allowed for human voices to be transmitted via electrical signal, allowing people to communicate directly without having to meet face to face

• 2000s→ development of social media platforms and devices like 4Chan and MySpace, the iPhone, enhanced camera and video function, instant messaging and emailing made communication across the globe easier as communication could bypass timezones and regions instantly, with a click of a finger.

growth of multinational corporations

• Starbucks

  • harvests beans from over 30 countries in Latin America

  • transports the beans to roasting facilities in the US and India

  • distributes to warehouses globally for the beans to be packed and distributed to retailers worldwide

  • 2022→ Starbucks had a total of 35k retailers worldwide.

• McDonald's

  • has more than 40k stores worldwide

  • adapted to local palates and flavours to ensure that consumer base is kept active and that demands remain consistent

  • Hong Kong→ sells chicken macaroni soup which is a popular dish in a Hong Kong style diner (cha caan teng)

  • Mainland China→ sells congee and fried doughsticks, which is a popular Chinese breakfast

chapter 8

economic impacts of globalization

economic growth

• 2018→ 59% of the total number of tech-based MNCs in Asia have established HQs in Singapore

• Singapore has invested in China, India and Indonesia→ large population and a greater potential economic growth will likely bring economic growth to Singapore

• 2010

  • FDIs received by SG: $665B

  • Singapore’s FDI’s abroad: $427b

  • Goods traded by SG: $907b

  • Services traded by SG: $274b

• 2023

  • FDIs received by SG: $2843b

  • Singapore’s FDIs abroad: $1523b

  • Goods traded by SG: $1206b

  • Services traded by SG: $837b

economic vulnerability

• Russia-Ukraine war

  • Russia and Ukraine are both major exporters of wheat, corn and sunflower oil

  • Ukraine is the world’s biggerst exporter of neon and noble gases, which are core components in the making of computer chips

  • Russia is a major oil and natural gas producer and exporter

  • flow of goods were disrupted and sanctions were imposed on Russian trade, capital flow and travel

    • Europe was greatly affected as they relied heavily on Russian energy, resulting in soaring energy prices and high inflation across the continent

• US-Iran war

  • the world’s biggest oil supply disruption since the 1970s energy crisis

  • surges in oil and gas prices, disruptions in aviation, tourism and votality in financial markets

    • due to Iran’s closure of the Strait of Hormuz, which disrupted 20% of the global oil supply and liquefied natural gas

    • Oil markets reacted quickly, with prices rising above $90 per barrel!!!!

employment opportunities for individuals

• Amazon’s hiring binge duiring the COVID-19 pandemic

  • Seattle, India and Italy

  • added 427.3k employees between January and October

  • non-inclusive of the 100k temporary workers and 500k delivery drivers who were contractors.

• Growth in Singapore’s population by 1.2%