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9 How do we respond to
tensions arising from some
economic impacts of
globalisation?
Being Part of a
Globalised
World: Is it
Necessarily
Good?
Chapter 8:
What does it
Mean to Live
in a
Globalised
World
Chapt...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
Made possible by the driving
forces of globalisation
In a global economy, these
interconnections are intensified
due to in...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
Agriculture Manufacturing
Tourism Trade and
investments
that determine the impact on a
country’s economy
When a country
ex...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
More tax revenue

Improve infrastructure for
country
Therefore, most countries try to leverage on the opportunities
from ...
1. Limited natural resources
to support production for
its own consumption.
2. Small domestic or local
market
1. Global ec...
Trade

Foreign Direct Investment (FDI)
Investments in a Singapore company
by a company from another country.
FDI in Singapore
$1363.7 billion
Major foreign investors in
Singapore :
1. USA
$280.9 billion,
2. British Virgin Islands
$...
Trade

Free Trade Agreement (FTAs)
Treaties between countries to
establish a free trade area where the
exchange of goods ...
Substantial amount of tariff
savings and increased trading
between Singapore and
partner countries.
E.g. US-Singapore Free...
Why was USSFTA important to Singapore?
With greater trade, there will
be more companies looking
to set up in Singapore.
1. Generate more tax
revenue for Singapor...
Cheaper products produced by other countries can
be imported to a country due to FTAs.
Competition with local products tha...
Lesser benefits
for domestic
businesses in
various areas
for FDI
Little evidence
of substantial
transfer of
knowledge and
...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
In times of economic downturn, a country may withdraw its investments
or reduce its demand for goods and services from oth...
E.g. 2008 Global Financial Crisis
(refer to pages 280-281)
1. Triggered by USA
2. Fall of stock markets
3. Decline in dema...
Fourth largest US investment bank in 2008
• Employed 25,000 people worldwide
15th Sept 2008, it filed for bankruptcy.
Its ...
Singaporeans
1. Workers who lost their jobs
were
• given help finding new
ones.
• given opportunities to be
retrained with...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
One way for MNCs to obtain higher
profits is through setting up
operations in different locations
• Allowed access to lowe...
American companies dominated
the global companies e.g. Pepsico.
Many Singapore companies
gained higher profits by going
global as they expand their
operations overseas.
Ranges from healt...
Using the examples of Singapore companies from the articles
given, what strategies and values do you think helped them
to ...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
Companies also face increased competition from other
companies in a global economy.
This is a trade-off due to globalisati...
Thus, a company needs to
constantly innovate and
reinvent itself or risk losing its
share of the market or profits.
How?
C...
contribute more than
They are important to Singapore’s economy
50% 70%
of economic output of employment
Since 2000, globalisation resulted in spread of MNCs, bigger
local companies and SMEs.
1. Unable to compete with
larger companies that sell
similar products or
services
2. Small domestic market
3. Shortage of ...
1. Some SMEs are able to
understand local
conditions and choose to
offer goods and services
which appeal to the locals
2. ...
E.g. Goh Joo Hin Pte Ltd is
the company behind New
Moon, Skippy and Mili.
The company remains
competitive through
strategi...
E.g. MMI Holdings, an SME, is the supplier of hard drive disks
for US-based Seagate Technology, an MNC.
1 Various forms of financial assistance
to help SMEs at different stages of
growth
2 Aids in SMEs’ efforts to venture
abro...
MNCs which are
unable to
anticipate
changing markets
and ensure that its
products and
services remain
relevant and
competi...
2012: French
hypermarket chain,
Carrefour, closed its
two branches in
Singapore after 15
years (Plaza
Singapura and Suntec...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
Globalisation created
mobility which
benefit individuals by
providing
opportunities for
people to collaborate
on local and...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
Globalisation made it easier for
people to look for jobs overseas.
This is usually encouraged by better
job prospects and ...
There will be those who benefit
from this as overseas
companies may want to employ
them due to their skills.
However, othe...
Chapter 9:
How Do We Respond To
Tensions Arising From Some
Economic Impacts of
Globalisation?
Economic Impacts
on Country
...
Some workers have to contend with lower income or risk losing their jobs.
Reason: Companies get more access to foreign mar...
E.g. USA in 1970s was affected when many Americans lost their jobs since
it could be done by people in China and India at ...
First started operations in Shenzhen China due to low labour cost.
However, China manufacturing and labour costs rose, mak...
Some workers lost their job due to
inability to equip themselves with
skills required for the job.
Nature of skills evolve...
Loss of jobs and income can be experienced by workers of
different skill types.
Individuals who lost their jobs can
be tho...
Ministry of Manpower (MOM)
came up with Continuing
Education and Training (CET)
Masterplan to support
Singaporeans in rema...
For older workers, MOM created
the Workfare Training Support
Scheme (WTS) which allows them
to upgrade their skills in ord...
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)
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Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)

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These slides introduce Chapter 9: How do We Respond to Tensions Arising from some Economic Impacts under Issue 3: Being Part of A Globalised World to the Secondary 3 and 4 students who are studying Social Studies for the Singapore current syllabus 2016.

These slides are divided into 3 areas.
1. Economic Impact on Country [Slide 3]
2. Economic Impact on Companies [Slide 29]
3. Economic Impact on Individuals [Slide 50]

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Social Studies Chapter 9 How do We Respond to Tensions Arising from some Economic Impacts (slideshare)

  1. 1. 9 How do we respond to tensions arising from some economic impacts of globalisation?
  2. 2. Being Part of a Globalised World: Is it Necessarily Good? Chapter 8: What does it Mean to Live in a Globalised World Chapter 9: How Do We Respond to Tensions Arising From Some Economic Impacts of Globalisation Chapter 10: How Do We Respond to Tensions Arising From Some Cultural Impacts of Globalisation Chapter 11: How Do We Respond to Tensions Arising From Some Security Impacts of Globalisation
  3. 3. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  4. 4. Made possible by the driving forces of globalisation In a global economy, these interconnections are intensified due to increased economic activities across different locations in the world, which can in turn lead to economic interdependence between different parties. Development in transportation Multinational corporations (MNCs)
  5. 5. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  6. 6. Agriculture Manufacturing Tourism Trade and investments that determine the impact on a country’s economy When a country experiences economic growth, it is able to earn more tax revenue and potentially generate more jobs for its people over a period of time.
  7. 7. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  8. 8. More tax revenue  Improve infrastructure for country Therefore, most countries try to leverage on the opportunities from participation in the global economy. More trade and business  Provide a greater variety of goods and services for consumption
  9. 9. 1. Limited natural resources to support production for its own consumption. 2. Small domestic or local market 1. Global economy provide Singapore with expertise, products and service 2. Singapore encourages foreign investments 3. Singapore invests in other countries
  10. 10. Trade  Foreign Direct Investment (FDI) Investments in a Singapore company by a company from another country.
  11. 11. FDI in Singapore $1363.7 billion Major foreign investors in Singapore : 1. USA $280.9 billion, 2. British Virgin Islands $117.9 billion etc. Why was Singapore able to attract these foreign investors to trade? Singapore’s ability to enable businesses to enhance and strengthen their important activities here and leverage on economic opportunities in Singapore.
  12. 12. Trade  Free Trade Agreement (FTAs) Treaties between countries to establish a free trade area where the exchange of goods and services can be conducted, without tariffs or hindrances, across their borders.
  13. 13. Substantial amount of tariff savings and increased trading between Singapore and partner countries. E.g. US-Singapore Free Trade Agreement (USSFTA) (Read pg. 278) Electronics and information technology Chemical and petrochemicals Textile
  14. 14. Why was USSFTA important to Singapore?
  15. 15. With greater trade, there will be more companies looking to set up in Singapore. 1. Generate more tax revenue for Singapore 2. Create more job opportunities for Singaporeans This will be beneficial for Singapore’s economic growth
  16. 16. Cheaper products produced by other countries can be imported to a country due to FTAs. Competition with local products that may be more expensive. Livelihood of local producers or businesses affected. Some may have to close down due to their inability to compete with these cheaper products.
  17. 17. Lesser benefits for domestic businesses in various areas for FDI Little evidence of substantial transfer of knowledge and skills from foreign companies or investors Limited employment opportunities for locals Economic linkages with domestic businesses are weak or do not bring about significant advantage to them
  18. 18. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  19. 19. In times of economic downturn, a country may withdraw its investments or reduce its demand for goods and services from other countries. This will lead to less income and employment for the countries affected.
  20. 20. E.g. 2008 Global Financial Crisis (refer to pages 280-281) 1. Triggered by USA 2. Fall of stock markets 3. Decline in demand for goods and services 4. Decrease in industrial production increase in unemployment 5. Affected employment of more than 50 million people.
  21. 21. Fourth largest US investment bank in 2008 • Employed 25,000 people worldwide 15th Sept 2008, it filed for bankruptcy. Its collapse was linked to the 2008 Global Financial Crisis. Banks and investors all over the world became reluctant to extend further loan for fear of not being repaid. This led to more businesses to close down as they could not borrow money to fund their investments.
  22. 22. Singaporeans 1. Workers who lost their jobs were • given help finding new ones. • given opportunities to be retrained with new skills. 2. Lower income families were given assistance through rental rebates. Businesses Smaller Singapore firms could keep their operations going as they could obtain financing with reduced interest rates and increased subsidies for their insurance premiums. New businesses and smaller companies were granted further tax exemptions • They paid little or no taxes.
  23. 23. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  24. 24. One way for MNCs to obtain higher profits is through setting up operations in different locations • Allowed access to lower labour costs and cheaper resources such as land and raw materials. • Obtain their components from one location but assemble them in different parts of the world  cheaper production costs.
  25. 25. American companies dominated the global companies e.g. Pepsico.
  26. 26. Many Singapore companies gained higher profits by going global as they expand their operations overseas. Ranges from healthcare, food, fashion and technological expertise. Singapore government provides loans, grants and tax incentives to aid these companies. Capitaland Keppel Charles & Keith BreadTalk
  27. 27. Using the examples of Singapore companies from the articles given, what strategies and values do you think helped them to globalise successfully?
  28. 28. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  29. 29. Companies also face increased competition from other companies in a global economy. This is a trade-off due to globalisation impacts on companies. Impact: It is harder to compete for a share of profits from the global economy
  30. 30. Thus, a company needs to constantly innovate and reinvent itself or risk losing its share of the market or profits. How? Constantly introducing new features into its products and services Must anticipate how a market might change and ensure that their products and services remain relevant.
  31. 31. contribute more than They are important to Singapore’s economy 50% 70% of economic output of employment
  32. 32. Since 2000, globalisation resulted in spread of MNCs, bigger local companies and SMEs.
  33. 33. 1. Unable to compete with larger companies that sell similar products or services 2. Small domestic market 3. Shortage of expertise and labour Many SMEs are unable to earn enough profit to sustain their operations.
  34. 34. 1. Some SMEs are able to understand local conditions and choose to offer goods and services which appeal to the locals 2. Others play complimentary role to the MNCs.
  35. 35. E.g. Goh Joo Hin Pte Ltd is the company behind New Moon, Skippy and Mili. The company remains competitive through strategies like offering a wide range of food products and keeping abreast of market trends in processed food.
  36. 36. E.g. MMI Holdings, an SME, is the supplier of hard drive disks for US-based Seagate Technology, an MNC.
  37. 37. 1 Various forms of financial assistance to help SMEs at different stages of growth 2 Aids in SMEs’ efforts to venture abroad 3 Facilitates partnerships between SMEs and larger corporations 4 Provides financial assistance in the forms of loans, grants and tax incentives
  38. 38. MNCs which are unable to anticipate changing markets and ensure that its products and services remain relevant and competitive could face lowered profits and bankruptcy.
  39. 39. 2012: French hypermarket chain, Carrefour, closed its two branches in Singapore after 15 years (Plaza Singapura and Suntec City) due to competition from other companies offering similar products in Singapore.
  40. 40. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  41. 41. Globalisation created mobility which benefit individuals by providing opportunities for people to collaborate on local and global scale. Collaboration can take place through the Internet (videoconferencing) or face-to-face (people travelling across the world) Mobility can also cause challenges due to increased competition in securing employment.
  42. 42. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  43. 43. Globalisation made it easier for people to look for jobs overseas. This is usually encouraged by better job prospects and higher income overseas. This created greater competition as individuals compete with people from the same country and others from everywhere in the world.
  44. 44. There will be those who benefit from this as overseas companies may want to employ them due to their skills. However, others may be vulnerable as they may lose their jobs.
  45. 45. Chapter 9: How Do We Respond To Tensions Arising From Some Economic Impacts of Globalisation? Economic Impacts on Country • Economic Growth • Economic Downturn Economic Impacts on Companies • Higher Profits / Market Share • Lower Profits / Market Share Economic Impacts on Individuals • Higher Income • Loss of Income
  46. 46. Some workers have to contend with lower income or risk losing their jobs. Reason: Companies get more access to foreign markets offering lower labour costs.
  47. 47. E.g. USA in 1970s was affected when many Americans lost their jobs since it could be done by people in China and India at a lower cost. Over time, income increases in China and India. Companies shifted to Vietnam, Myanmar, smaller Indian cities, inland Chinese cities, Eastern Europe and Central America due to cheaper labour. Companies which have outsourced to Vietnam
  48. 48. First started operations in Shenzhen China due to low labour cost. However, China manufacturing and labour costs rose, making it unprofitable for the company. In 2013, Uniqlo moved to Vietnam where labour costs were half of China’s.
  49. 49. Some workers lost their job due to inability to equip themselves with skills required for the job. Nature of skills evolved over time. E.g. when countries moved from agriculture to manufacturing and service industries, skills will change. Skills have also moved from technological to cognitive skills such as information processing and interpersonal skills.
  50. 50. Loss of jobs and income can be experienced by workers of different skill types. Individuals who lost their jobs can be those who are not highly skilled and are lowly paid. • Difficult to be reemployed Workers who are highly skilled like engineers can also be replaced by equally skilled workers from other countries who command lower salaries.
  51. 51. Ministry of Manpower (MOM) came up with Continuing Education and Training (CET) Masterplan to support Singaporeans in remaining employable with new and better skills. MOM offers training courses relevant to Singapore workers.
  52. 52. For older workers, MOM created the Workfare Training Support Scheme (WTS) which allows them to upgrade their skills in order to remain employable, upgrade their jobs and earn higher wages. Refer to article on Workfare Income Supplement.

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