NYJC_H2_ECON_ESSAY_QN_6

6. ‘Globalization is much like fire. Fire itself is neither good nor bad. Used properly, it can cook food, sterilize equipment, form iron, an d heat our homes. Used carelessly, fire can destroy lives, towns and forests in an instant.’ www.globalenvision.org In the light of the above statement, assess measures that the Singapore government may adopt to manage globalisation. [25] Synopsis Students are expected to identify and explain positive and negative effects of globalisation and showing how the Singapore government adopts measures to exploit the benefits of globalisation and reduce the harm from globalisation.                 PoliciesPolicies to maximize benefits Policies to minimize costs Limitations Conclusion Costs (No)

Suggested essay approach: 1. Define the (economic) ‘Globalization’ concept/phenomenon 2. Identify the possible dimensions that describes/facilitates the concept/phenomenon  Global market – the impact of opening up of new markets on globalised economies (eg. different marketing strategies for different regions/countries)  Interdependent economies – leading to the international trade multiplier where countries are becoming less insulated from economic shocks regardless of its origins  Trade in factors of production – regionalization and freer trade (via FTAs) between members and non-member economies and the impacts of capital (FDI flows) & labour mobility  Technology as a facilitating agent – the speed of technology changes (in communication & transportation) in promoting a more inter-c onnected environment and newer organizational and operational structures  Growing significance of MNCs/TNCs – its growing influence on the world economy and the implications for governments in having to tweak their domestic policies to ensure the continued existence of these firms by providing infrastructural (physical & social) support 3. Explain and analyse how the dimensions of globalization could have a varied (positive &/or negative) impacts in terms of:  goals for an economy – macroeconomic or microeconomic  time frame of impacts - short-run & long run 4. Assess the economic benefits and costs to Singapore. 5. Explain policies to maximize the economic be nefits and minimize the economic costs to Singapore. 6. Explain limitations of the policies. 7. Conclusion and Evaluation Expectations:  Knowledge and understanding in usage of Economics jargon & terms. For e.g.: Impact on LT capital a/c, current a/c, AD, real NY, inflation, comparative advantage, economies of scale.  Demonstrate the ability to apply Economics fundamentals and reasoning in explanation.  Use economic framework/tools of analysis ie . diagrams (AD-AS, DD-SS, etc.) to support analysis.  Use real-life examples to demonstrate the app lications of globalization to substantiate answers.  Demonstrate a good understanding of the Singapore economy in the globalized world.  Explai