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Discuss the socio-economic impacts of globalization on Singapore.

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Introduction

MNCs & Industrialisation in Singapore 1a. Why is Singapore attractive as a location for new factories owned by foreign companies This is because firstly Singapore have exceptional infrastructure in communication and transportation. Singapore has the world's busiest port with efficient cargo and container handling and the airport Changi International Airport has the most air-links in the Asia-Pacific region. Singapore has a strategic location together with its state-of-the-art communication facilities. This thus enables MNCs to conduct their business transaction from Singapore to any county in the world with great efficiency. Singapore is also close to the expanding Asia-Pacific markets, for example Malaysia, thus this would attract MNCs to Singapore to set up their headquarters here before venturing into this new markets. Also Singapore has many industrial facilities and specialised parks. They have also served to attract MNCs to Singapore. For instance, the international Business Park and Changi Business Park have pre-constructed facilities for companies to conduct administrative and manufacturing activities at the same location. Also Singapore has a highly skilled and disciplined labour force. This is an added bonus and attraction to MNCs as with the increasing number of MNCs dealing in technology-based manufacturing, Singapore has increased its pool of Information Technology professionals. Furthermore, Singapore has political stability. The Singapore government have established a high level of stability within the county. ...read more.

Middle

The sale of the manufactured goods overseas is a source of foreign exchange 2a. What factors have encourage the rapid industrialization of Singapore in recent times? The government aims towards an innovation and knowledge economy by developing a world-class workforce with capabilities in business, technology, innovation, production and services, and international market development have encouraged rapid industrialization in the sense that there is a larger labour pool for company to choose from. Continuous improvement in improving existing products and developing new ones through Research and Development in areas such as electronics, computer hardware and software, and chemical. The Singapore government have promote R&D and high-technology industries, a good example would be JTC developing the Singapore Science park situated next to the National University of Singapore. The government have also given tax incentives to manufacturing firms involved in R&D. They also provide funds to local companies to encourage to carrying out R&D. This thus has encouraged the rapid industrialization of Singapore because new and improved products have been researched on and introduced. Also, given our limited resources, the government R&D efforts have been focused on those areas that Singapore has already built up reasonable world standing and which are of eventual relevance to industry. The government have enhances links to other global technological centres. And thus generate rapid industrialization. ...read more.

Conclusion

blow as we might not be able to support our industries and have the technology provided by the MNCs to produce these high-value products which amounts to a reasonable percentage in the country's revenue. Also local firms may wind up their business when they cannot compete with the MNCs for the local market. This is because these MNCs would have a much bigger capital and thus would be able to invest more into R&D their production cost would also be allow and thus sales cost would be lower than the local firms. Furthermore if there is an economic recession in a particular county, which invest heavy in Singapore, the Singapore industry and economy will suffer a great loss as well since they are inter-related. A good example would be the current pending war on Iraq, which have caused much uncertainty in the US market. Thus the US economy have declined steady, this thus have caused Singapore to follow suit as US as seen in the figure invest about 24% in Singapore Industries. The more Singapore industries is dependant on foreign investments, the higher a risk is has to be adversely effected when any particular economy suffer from a economic blow. The Singapore economy would thus not be very stable is reliant on the global economic situation. It would therefore not be economically independent and a global economic blow turn would throw it into a great economic ression. ...read more.

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