SS issue 3

globalisation

What are the factors that contribute to globalisation?

• Technological advancements

  • Developments in transportation

  • developments in digital technology

• Growth of Multi National Companies (MNCs)

how do technological advancements in transportation contribute to globalisation

• Technological advancements have led to improvements in land, sea and air transportation.

• Speed:

  • improved from 45km/h from the Liverpool and Manchester steam-powered rail in 1830 to the Shinkansen bullet trains in Japan with a speed of 320km/h

• Capacity:

  • from steam-powered ships in the 1800s with limited carrying capacity due to space taken up by its large engine and fuel to container ships since 1956 with a carrying capacity from 25,000 to 600,000 tonnes

• Costs:

  • from being a luxury in the 1950s, flying has now become affordable with the rise of low-cost airlines with lower fares since 1990s

• Transport of goods and people have become so much more efficient, increasing connectivity between people which drives globalisation.

how do technological advancements in technology contribute to globalisation

• From:

  • Smoke signals and carrier pigeons: messages relayed via fire smoke signals or the pigeon post

  • Postal letters: with rise of maritime shipping, postal letters carried between continents by merchant vessel which took months and may be even lost at sea

  • Telegraphs and telephones: telegraph invented in 1830s to transmit electrical signals over a wire installed between telegraph stations. Scientists invented receivers that led to development of telephones in 1871 that allowed human voice to be transmitted over wires.

• To:

  • Smartphones: since 2000s, telephones and mobile phones developed rapidly with wireless networks, mobile processors and camera technology

• Advances in technology have allowed for ideas, people and activities across the world to become highly interconnected as people are now able to communicate with others across different time zones and countries

how does the growth in MNCs contribute to globalisation

• Starbucks: sources its coffee beans from South America and Africa and sends them to be roasted in USA and India. They are then delivered to Starbucks retail outlets across the world in more than 35,000 stores.

• (This can be turned into a Singapore-based example by mentioning that Starbucks have outlets in Singapore.)

• The transport of coffee beans from the supplier to the manufacturer causes an interconnectedness among the different countries, making countries’ economies interdependent. People are able to work in companies owned by MNCs in their own home countries and also consume products from all over the world.

How do we respond to the economic impacts of globalisation?

• Economic impacts of globalisation'

  • on countries

    • economic growth

    • economic vulnerabilities

  • on individuals

    • employment opportunities

    • employment challenges

• Responses to impacts

  • government support

  • Individuals’ acquisition of skills and knowledgea

impact of globalisation on economic growth (Countries)

• increase in a country’s production of goods and services.

• A country’s growth can be measured by using gross domestic product (GDP) over a period of time

  • Singapore’s GDP rose from $2157 million in 1960 to $643,546 million in 2022

• Trade and foreign investments:

  • 1965-1970s: Singapore faced a high unemployment rate, government sought to attract foreign investments, especially in labour-intensive industries (such as garment manufacturing and shipbuilding).

  • End of the 1960s to the early 1970s, Singapore enjoyed strong economic growth. Workforce had more jobs and higher wages.

  • 1970s: Higher wages led to higher labour costs. Singapore became less competitive in labour-intensive industries compared to neighbouring countries (more labour, cheaper costs). Singapore thus began attracting new foreign investments in higher-value industries (such as petrochemicals and engineering).

  • 1980s to 2000s: government focused on pursuing more trade, overseas investment and developing more service sectors (such as finance and info-communications). Active efforts were made to attract MNCs to set up their operations in Singapore.

  • 2010 to 2020s: SG received FDIs from $665 billion in 2010 to $2,479 billion in 2021

• More revenue generated

• can be used to improve infrastructure and standard of living

impact of globalisation on economic vulnerability (Countries)

• Globalisation has resulted in interconnectedness among countries. When the economy of one country is affected, the interconnectedness will cause the economies of other countries to be affected too.

• Russia-Ukraine crisis: Russia is the world’s largest exporter of wheat. Ukraine is often as Europe’s breadbasket. Due to the war, the two countries has caused a supply shortage of grain and skyrocketing food prices worldwide.

impact of globalisation on employment opportunities for individuals

• Increased Economic Growth and Job Creation: Access to the global market boosts demand for goods and services, leading directly to more jobs and improved livelihoods.

• Advanced Skills and Technology Transfer: The influx of MNCs and FDI brings advanced technology and management expertise, enabling local workers to acquire new, valuable skills.

• Flexible, High-Wage Remote Work Opportunities: Digital advancements allow individuals to work remotely for foreign companies, earning higher wages and upgrading their skills without having to emigrate

• E.g. Amazon

  • an international e-commerce company, added 427,300 employees between January and October, pushing its workforce to more than 1.2 million people globally

• results in less unemployment and allows individuals to achieve a higher standard of living

impact of globalisation on employment challenges for individuals

• Job Loss due to Corporate Relocation:

  • MNCs may shift operations to other countries to reduce costs or access specialized skills, resulting in job displacement for workers in the original country.

• Job Displacement due to Automation:

  • Technological advancements and automation can cause a reduction in certain types of jobs, leading to job losses for individuals working in those specific sectors.

• Increased Competition in the Job Market:

  • Globalisation encourages international labour mobility, leading to greater competition from foreign workers in the domestic job market as individuals seek higher incomes abroad.

Responses to impacts of globalisation: government support by economic cooperation

• Economic Cooperation via pursuing Free Trade Agreements (FTAs) to make trade and investment between them easier.

• Bilateral FTAs (between 2 countries) - Singapore-Australia FTA (SAFTA):

  • tariffs on all imported goods are removed, number of Australian universities whose law degrees are recognised in Singapore increased from four to eight, period of stay granted to business visitors between Singapore and Australia increased from one to three months.

• Multilateral FTAs (between 3 or more countries) - the European Union (EU) - Singapore Free Trade Agreement (EUSFTA):

  • the EU would remove tariffs on 84 per cent of all Singapore products entering the EU within the first year and the remaining 16 per cent over a period of three to five years, market access for Asian food products made in Singapore was enhanced.

Responses to impacts of globalisation: government support by attracting and making foreign investments

• The Monetary Authority of Singapore (MAS) and Government of Singapore Investment Corporation (GIC) manage and invest Singapore’s national reserves which are worth hundreds of billions of dollars.

• Monetary Authority of Singapore (MAS),

  • Singapore’s central bank: ensures low and stable inflation in Singapore, which helps attract foreign investors. It also manages and invests the country's foreign reserves, namely foreign currencies accumulated from international trade and investment.

• Government of Singapore Investment Corporation (GIC)

  • manages the rest of the government's wealth long term by investing in a diverse range of foreign assets spread across the world like stocks, real estate and infrastructure

Responses to impacts of globalisation: government support by providing financial support and development of expertise

• Provided financial support for Singaporeans and local businesses during COVID-19

• S$4B STABILISATION AND SUPPORT PACKAGE

  • To support affected workers and firms with: retained jobs and wage support, cash flow support, property tax rebate for tourism sector, defrayed business costs for aviation sector, rental waivers for government-managed hawker centres and properties

• S$1.6B CARE AND SUPPORT PACKAGE

  • To support Singaporean families with: up to S$300 cash for adult Singaporeans, S$100 more for each parent with a child below 21, doubled utilities rebates and more for larger families, S$100 PAssion Card top-up for all seniors, S$100 supermarket vouchers for the lower-income

stabilises the economy by ensuring that firms remain solvent and citizens can continue to spend, promoting a faster and more resilient recovery from economic crises

Responses to impacts of globalisation: Individuals’ acquisition of skills and knowledge

• Continual upskilling is essential

• Individuals risk losing their jobs if they do not possess relevant skills, facing competition from foreign labour or the relocation of Multinational Corporations (MNCs) to other countries.

• Workforce Singapore’s Careers Connect

  • connect with a career coach to look for job opportunities actively

• Career Conversion Programme

  • offers training and does not require prior experience in the industry

• can lead to more and higher-paying job opportunities both locally and overseas.

• ensures that people do not fall behind

• increases job security while reducing the risk for unemployment.

Positive cultural impacts of globalisation: Spread of culture

• American fast-food: Global expansion of chains like McDonald's (over 38,700 outlets worldwide) offers diverse culinary options beyond local traditional fare.

• American media: Media corporations like Disney and Netflix globally broadcast films (e.g., Avengers: Endgame) that share values such as teamwork, heroism, and justice.

• The Korean Wave (Hallyu): South Korean pop culture (e.g., BTS), television dramas, and fashion gained widespread international fanbases across Asia, Europe, and the Americas.

  • Significance & Impact:

• Provides consumers with greater diversity of choices in food and entertainment.

• Encourages cross-cultural understanding, tolerance, and creative collaboration between societies.

Negative cultural impacts of globalisation: Dilution of culture

• Immersion in popular foreign culture and consumer lifestyles leads to local traditions and ethnic practices being sidelined or forgotten over time.

  • Key Examples:

• Music: Singaporeans showing strong preference for Western musicians (e.g., Taylor Swift, Ed Sheeran) over domestic artists (e.g., Tanya Chua, Benjamin Kheng), weakening support for local cultural identity.

• Food: In Japan, KFC's "Party Barrel" marketing campaign established fried chicken as a widespread Christmas custom, displacing traditional cultural practices with Western-inspired commercial habits.

  • Significance & Impact:

• Weakens pride in native customs and interrupts the intergenerational transmission of heritage.

• Accelerates cultural homogenisation, leading to the loss of unique national and community identities.

Responses of countries to cultural impacts of Globalisation

Countries may choose to:

1. reject cultural globalisation

2. limit the influence of cultural globalisation

3. embrace cultural globalisation

• In China, Chinese authorities control foreign film distribution in the country through censorship, policies limiting the import of foreign movies and control of release dates. Foreign films can only be distributed in China through Chinese state-owned cinema businesses. This means that profits are shared with the Chinese cinema businesses. As a result, the majority of movies screened in China are locally produced, with foreign movies only contributing to about 15 percent of the total box office revenue in the country.

Responses of individuals to cultural impacts of Globalisation

• individuals can choose to:

  • embrace the spread of foreign cultural products to enjoy various products and lifestyle choices, and agreeing with the values and beliefs that are promoted by these cultural products

  • or to resist the influences of cultural globalisation due to fears of cultural dilution

• The Korean Wave has enjoyed great popularity in Japan. K-pop tops music charts, K-dramas are broadcast at primetime with high ratings. This has caused a backlash as there are concerns over how Korean influences threaten or dilute Japanese culture and cultural businesses. In 2011, some locals staged protests against Japan’s Fuji Television for airing Korean entertainment shows and K dramas. Some chose not to buy Korean products. Japanese sites that promote Korean culture also has a dramatic decline in number of visitors.

How do we respond to the security impacts of Globalisation?

• Transnational terrorism

  • Vigilance by Individuals

  • Security measures by governments within their countries

  • Cooperation among countries

• Cyber threats

  • Vigilance by individuals

  • Security measures by governments within their countries

  • cooperation among countries

Vigilance by individuals responding to tensions arising from security impacts of globalisation

• Transnational terrorism

  • In April 2015, Arifil Azim, a 19-year-old post-secondary student, was detained under the Internal Security Act for planning to join a militant group and carry out violent attacks. Although he had tried to recruit others, none reported him initially. Fortunately, someone who noticed changes in his behaviour alerted the authorities, enabling the Internal Security Department to investigate andprevent any potential attacks before they occurred.

• Cyber threats

  • Individuals can use 2FA (2 factor authorisation) to add an extra layer of security protecting their accounts and data.

  • Even if a password is stolen, the account cannot be accessed without a second verification step.

  • Avoid suspicious links or downloads, keep software updated, and report phishing attempts or cyber threats.

Security measures by governments to respond to security impacts of globalisation

• Transnational terrorism

  • Governments came up with monitoring and surveillance infrastructure to ensure strict security checks. Technological innovations are installed at land and sea borders include body and baggage scanners, X-ray imaging equipment, heat sensing and security cameras.

  • Additionally, the use of biometrics to verify identity allow countries to mitigate risk of identity fraud. The biometric data could include facial features, fingerprints, and iris patterns.

• cyber threats

  • Through agencies like the Cyber Security Agency (CSA), the government strengthens national cyber defence. CSA oversees and coordinates cybersecurity efforts, develops a skilled workforce, and implements strategies to detect, prevent, and respond to cyber threats, ensuring Singapore’s cyberspace remains safe and secure.

Cooperation among countries to respond to security threats due to globalisation

• Transnationalism terrorism

  • Countries share information on threats or participating in international counter terrorism cooperation.

  • The International Criminal Police Organisation (INTERPOL) is an inter-governmental organisation that works with 195 member countries to improve world safety. In 2019, an officer from the Singapore Police Force was appointed to lead INTERPOL’s Regional Counter Terrorism Node (RCTN). The RCTN enables police units in the Asia Pacific region to work together and encourages the transfer of intelligience concerning terrorist activities.

• Cyber Threats

  • The Asia Pacific Computer Emergency Response Team (APCERT) is an organisation in the Asia Pacific region that promotes regional cooperation on information security. It also facilitates sharing on cyber threat data among countries in the region.

  • APCERT maintains a cooperative network of computer security experts in the Asia Pacific region. This improves the region’s awareness and competency in responding to cyber security challenges.