SS content chapter 8 and 9 notes

Chapter 8 Chapter 8 notes: Chapter 8_What does it mean to live in a globalised world.pdf What is globalisation? ● Connections between different countries made possible through technology - Economic connections [Buying products from other countries] - Cultural connections [Communicating / friendships across different countries] ● Example: Apple Inc. - Designed in the US, different parts procured from all over the world are assembled in China - If iPhones don’t sell well, Sales and profit of apple inc will drop Workers who extract raw materials that are used to produce components of iPhones will lose their jobs Retail shops will lose a huge source of revenue - Apple depends on other countries for cheap labour and manufacturing costs + selling - Other countries depend on apple for income and jobs - Fulfills the concept of interdependence ● Example: Starbucks - Starbucks supply chain connects producers and consumers around the world - Brings together experts and local farmers to transfer knowledge - Brings new technology (transport and to countries along its supply chain) - Connects consumers around the world through common cafe experiences ● Globalisation is the connection of different parts of the world that leads to expansion of international cultural and economic activities - Interdependence on other countries as well Multinational Corporations [e.g. starbucks, mcdonalds, google, meta ai] ● Large companies that operate in various countries ● May have subsidiaries(parent and sub company relationship) or acquire other companies ● They drive globalisation through supply chains that are global in scope - Supply chain is a network of individuals and companies who are involved in creating a product and delivering it to the customer ● The global span of MNCs’ operations results in the movement of people, goods and services across the globe. ● MNCs may choose to operate in different countries due to advantages such as a more affordable supply of raw materials or labour and the right skills at a lower cost.

● When MNCs set up subsidiaries in other countries, they increase the interconnections between people, activities and goods throughout the world. At the same time, they facilitate the exchange of ideas between countries. Relationship between Small Medium Enterprises (SME) and MNCs ● Example: - Google taught the Fotohub and upskilled their digital skills with advice and help to better manage their site and reach a wider audience through advertisements, improving their online ordering process and reviews - Impact: 94% increase in website foot traffic and 40% in orders - Connected through Enterprise SG Do you think technological advancements or growth of MNCs play a more significant role in driving globalisation? ● Actually, they reinforce each other Technological Advancements Growth of MNCs ● Developments in modes of land, sea and air transportation enable MNCs to move people, goods and services around the world in larger volumes quickly at lower costs ● Developments in digital technology have led to more efficient and reliable long-distance communication across borders and time zones, facilitating the business activities of MNCs ● The need of MNCs to move their goods efficiently provides incentive for developments in transportation. Countries also continually develop and improve their transport infrastructure and services to attract MNCs ● The need for reliable communication tools to coordinate MNCs’ business activities across the globe encourages developments in digital technology

Chapter 9 Chapter 9 notes: C9 Economic impact of Globalisation.pdf How can we respond to the Economic impacts of Globalisation? The cartoon illustrates the unequal impact of globalization on the rich and poor. It depicts a large wave labeled "globalisation" approaching two groups: the wealthy, who are safely in a sturdy boat, and the poor, who are struggling in the water without protection. Globalisation benefits the rich: The wealthy are shielded from its negative effects, likely due to access to resources, political influence, and economic stability. Globalisation harms the poor: The underprivileged are vulnerable, as they lack the means to navigate the challenges globalisation brings, such as job displacement, economic instability, or environmental degradation. Widening inequality: The cartoon critiques how globalization, instead of uplifting everyone, often deepens the gap between rich and poor. Overall, it suggests that globalization is not inherently bad, but its benefits are unequally distributed, favoring the wealthy while leaving the poor to struggle. What is the global economy? ● Refers to the integration of economies around the world into one system, making the economies interconnected and interdependent ● Example: 1. International Trade ➔ Countries participate in the global economy mainly through international trade, where they buy and sell goods and services from each other ➔ International trade occurs because countries may need or want goods and services that: - They are unable to produce themselves OR - Will be cheaper/of better quality when produced by other countries ➔ International trade makes countries interdependent on one another. ➔ However, not all countries participate in international trade to the same degree since some may be less dependent on international trade than others 2. International Investment

➔ Countries also participate in the global economy by investing in one another ➔ Investments that a country makes in another country or receives from another country are called foreign investment 3. Foreign Direct Investment ➔ Businesses from one country can set up operations in another country, or invest in businesses of another country for typically, a long period of time ➔ FDIs arise because businesses see opportunities to cut costs, increase profits or expand their market by setting up operations in another country. ➔ Benefits of FDIs: - When a country receives FDIs, it often results in an inflow of foreign equipment, talent and expertise. - FDIs help to increase the amount of goods and services produced locally and/or - promote the transfer of skills and expertise to local businesses and workers and create jobs with higher wages. ● Economic competitiveness: ➔ Through international trade and investment, a country’s economy becomes tied to other countries’ economies and integrated into the global economy. ➔ Countries may try to improve their economic competitiveness to promote international trade and investment with other countries. ➔ This refers to the factors that determine the level of productivity of a country. The more competitive the economy is, the more attractive the country is to foreign investors. What are the economic impacts of globalisation? 1. On countries [economic growth vs e