9. Economic Impacts of Globalisation

Chapter 9 - How Can We Respond to the Economic Impacts of Globalisation? Economic Impacts +ve -ve On Countries Economic Growth: increase in a country’s production of goods and services - can be measured using Gross Domestic Product (GDP) over time - countries’ goods sold globally > larger market > can increase production to meet demand - economic growth also due to foreign investments > bring in capital and advanced technology > can build production facilities and raise productivity Economic Vulnerability: due to interconnections and interdependent relationships, what happens in one country can affect other countries - events such as economic and political crises can affect other countries’ economies - countries experience economic vulnerability differently due to degree of participation - SG is highly integrated SG GDP increase from $2.16bil in 1960 to $390.6bil in 2014 foreign companies like Hyundai invest money and employ people to set up a factory to make electric vehicles in Singapore. - Global Financial Crisis (2008) - COVID-19 (2020) - Israel-Hamas War (2023) - US-Iran War (2026) Russia-Ukraine War (2022) - Russia: largest exporter of wheat - Ukraine: known as Europe’s breadbasket - ban on Russia’s energy exports > soaring energy prices and inflation - flying ban but airlines fly around 20% of goods, have to detour, more fuel $$

On Companies (not in textbook but just in case they ask) economic growth? larger market - more income can expand across the world competition other countries expand - local countries face greater competition - less income Carousell, e-commerce company that has expanded across SEA, Taiwan, Hongkong, Canada many chinese F&B chains (HDL, Mixue, Chagee) are super popular in SG, leaving local businesses struggling On Individuals Employment opportunities - country is open to global economy > larger market > higher demand > more jobs > livelihood for individuals - MNCs and FDIs use more advanced technology > jobs with higher skills and wages - advancements in digital technology and transportation > increased mobility overseas > can find better jobs overseas Employment Challenges - MCS relocate to other countries to save costs/access expertise > lose jobs - advancements in technology > automated jobs using machines - individuals relocate to work in other countries > greater movement of labour > locals face greater competition from foreign labour during COVID-19 pandemic, Amazon, international e-commerce company, went on “hiring binge” - 427,300 employees added btw Jan and Oct 2020 (warehouse workers, software engineers, technical specialists) Urban hawker: food hall in NYC Singaporean hawkers have found success opening stalls there selling Singaporean food like chicken rice. venturing overseas, our local hawkers can charge more as our dishes are viewed as speciality items there. 2023, Amazon st