Name: _____________________________ ( ) Class: _______ Date: ___________

Chapter 9
Economic impacts of globalisation
(A) Economic impacts on COUNTRIES

Economic Growth

 Challenges Singapore face:

▷ ________________ population and market size

▷ Needs to tap on ___________ _________________ for trade to sustain economic growth

 Two ways Singapore taps on global economy for trade

1. ________________ ____________ __________________ (FDI)

• Investments in a Singapore company by a company from another country

• In 2012, FDI amounted to $___________ billion

• Major investors: __________, Netherlands, British Virgin Islands, Japan, UK

etc

2. ________ ___________ __________________(FTAs)

• ____________ between countries to establish a free trade area

• Exchange of goods and services without ____________ or hindrances

• 2004: ______________________________________________________ (USSFTA)

• FTAs – Is it Good or Bad?

 Beneficial for trade and investment

 Enhance _________________ relations

✗ Increased ___________________ due to cheaper products

from other countries
✗ Local producers or businesses’ _______________ and
development would be affected
✗ Little evidence of any substantial transfer of __________________ or skills
from foreign companies to the locals
✗ Limited ____________________ opportunities for the locals

 Economic growth  more ________ revenue  good job opportunities for Singaporeans

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Economic Downturn

 Because economies of various countries are interconnected and interdependent due to

globalisation, one country’s downturn could therefore affect the _____________ of another
country.
 A country may withdraw its _______________ or reduce its _____________ for goods and
services from other countries
 This leads to __________ income and employment for the countries affected.
 Eg, _____________________________________

2008 Global financial crisis

How did Singapore respond to the crisis

 For Singaporeans
▷ Help workers who lost their jobs to _____________________________
▷ Given opportunities to be __________________ with new skills
▷ Lower income families given _____________________________

 For Businesses
▷ Financing with _____________________________ and __________________________
for insurance premiums for SMEs
▷ New businesses & smaller companies were granted _____________________________

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 (B) Economic impacts on COMPANIES

Higher Profits / Market Share

MNCs set up • Lower _________ costs Higher profits /

____________ in ______ markets
different locations • Cheaper ________ and raw
materials
• Cheaper production costs

Refer to page 285 and find out more about successful Singapore companies which have
benefitted from globalisation.

Lower Profits / Market Share

Small and medium enterprises (SMEs) contribute more than _____ per cent of economic output and
70 per cent of ____________________ in Singapore.

• Some challenges facing SMEs

▷ Small ___________________ market, Insufficient _____________
▷ Competition from bigger companies, Shortage of ____________ and expertise

• Some incentives offered by the Singapore Government

▷ Financial assistance to help at different stages of ______________
▷ Aids in SME’s efforts to venture ________________
▷ Facilities partnerships between SMEs & larger corporations
▷ Financial assistance in the form of _________, grants and ________ incentives

Companies that successfully innovate Companies that lost out in the

and reinvent itself competition

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(C) Economic impacts on INDIVIDUALS

Higher Income Lower Income

Increased _______________ Increased mobility of people and _____________

 

Able to look for jobs overseas Increased __________________


better job _______________,
higher income and _________
(not just competing locally but globally)

• Accept lower income or risk losing their jobs

• Lose their jobs as they are unable to equip

themselves with new ____________

• Lose their jobs as companies _____________

to places with ____________ labour costs
Eg, In the 1970s, many _______________ lost their
jobs as labour costs in China / India were lower.
Eg, Uniqlo moved product operations from China to
______________ where labour costs were half of
China’s.

• Government initiatives to help workers stay employable

▷ ___________________
 To equip all Singaporeans with the relevant skills for jobs in the future
 Life-long effort
 Every Singaporean aged 25 & above will receive an initial credit of S$500. This will
be topped up periodically.
 The credit can be used on any government approved course

▷ _____________________________________________ (CET) Masterplan

 Training allowance for working Singaporeans who sponsor their own training
 Workfare Training Support Scheme (WTS) to allow older low-wage workers upgrade
their skills

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  Training Commitment Award to encourage workers to go for continuous skills
upgrading

Economic Impacts

(A) Countri (B) Companies (C)

es ______________

Higher ___________
Economic Economic ___________ / Higher _________ of
Profits /
Growth __________ Market Share Income Income
Market Share

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 Social Studies
Formative assessment 2
Understanding Free Response Questions

Name: _____________________________ ( ) Class: _______ Date: ___________

Extract 1

Companies outsourcing operations into China had been fashionable from since the 1990s. This is
because outsourcing will make labour cost relatively low. Workers in the manufacturing and other
low-skilled industries are especially at risk. In the periods of 2001 to 2008, the U.S. has lost 2.4m
jobs to China.

(a) Extract 1 states that due to the practice of outsourcing, many Americans lost their jobs to
cheaper labour in China, especially those in the manufacturing and other low-skilled
industries.
In your opinion, how could Singapore prevent the loss of jobs due to MNCs moving their
operations to countries with lower labour costs? Explain your answer using one ways.

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