Globalization Chapter 2, Sec 4 Social Studies. What is Globalization? The process by which PEOPLE, THEIR IDEAS and THEIR ACTIVITIES in DIFFERENT PARTS.

Globalization

Chapter 2, Sec 4 Social Studies

What is Globalization?The process by which PEOPLE, THEIR IDEAS and THEIR ACTIVITIES in DIFFERENT PARTS OF THE WORLD become INTERCONNECTED or INTEGRATED

Globalization as a term is new but the Process is not …

It shows how the world has “shrunk” and how people, goods and information can be moved easily around the world

Important to Note…

So, if you are asked to assess HOW EFFECTIVE globalisation has been… you have to ask yourself HOW MUCH INTERCONNECTION AND INTEGRATION HAS TAKEN PLACE BETWEEN PEOPLE, THEIR IDEAS and THEIR ACTIVITIES in DIFFERENT PARTS OF THE WORLD

Examples of Globalization

The InternetSelling local products (e.g. OCK Curry Puff) in the global market (e.g. Malaysia, China, Indonesia, etc)Attending lectures by a British professor teaching in an American University via a web-conference in NUS

Examples of Globalization

People in different parts of the world:Wearing Made in China clothesDriving Made in Japan carsSipping Australian Wine while watching the LIVE telecast of a soccer match in Germany

Pizza 12

What do you think is the message of this video?Is there a more serious issue behind the spoof?How much globalization goes into our pizzas?http://www.youtube.com/watch?v=yQE4j5Mxr1M

Key Driving Forces of Globalization

1) Developments in transportation and communicationsEnables globalization by encouraging it:

Transport systems are the means by which people, products and materials are transferred from one place to anotherCommunication systems are the means by which information is transmitted from place to place in the form of ideas, instructions and images


1) Developments in transportation and communicationsTransportation

Improvements in transport technology has “shrunk” the world19th century steam engine 20th century jet engine, large ocean-going vessels move peopleContainerisation moves goods fast and cheap over long distances (ships trucks)


1) Developments in transportation and communicationsTransportation

Increasing mobility of goods and peopleCountries have built efficient and integrated transportation infrastructure (e.g. airports, seaports, railways, highways to facilitate movement)


1) Developments in transportation and communicationsCommunications

Faster and more convenient communicationPeople all over the globe can communicate via telephone, e-mail, fax, video conferencing, etcSatellite technology allows for simultaneous communicationOptical fibre systems can transmit large amounts of information and very high speeds



Internet has enabled consumers to access information instantly, conveniently and efficientlyInternet has transferred the way people communicate, do business, obtain information and purchase goods and services



Transnational Companies can operate as information from the head office can be easily and effectively transmitted to every branch office anywhere in the world


2) Transnational CompaniesLarge global firms that operate in a number of countries and have production and service facilities outside the country of their originExample: Microsoft, Toyota


2) Transnational CompaniesTNCs set up operations in different parts of the world because:

Sourcing for new marketsLowering cost of productionProduction of different parts for products and assembly done in a variety of countries

Impact of Globalization1) Economic Impact

Improvements in Standards of LivingIncreased Competitions among Nations

Investment and MarketTalent

Widening Income Gap between the Rich and Poor

Impact of Globalization2) Social Impact

Increased Awareness of Foreign CultureLoss of Local Culture


Environmental DegradationDeforestation and Related ProblemsGlobal WarmingEnvironmental Management

Impact of GlobalizationEconomic Social Environmental

Good Effects- Improvement in Standard of Living- Competition Among Nations (Investment & Market)

Good Effects- Increased Awareness of Foreign Culture

Good Effects- Environmental Management

Bad Effects-Competition Among Nations (Talent)- Widening Income Gap between the Rich and the Poor

Bad Effects- Loss of Local Culture

Bad Effects- Global Warming- Deforestation and Related Problems


Improvements in Standards of LivingAs countries trade and open their doors to foreign investment, they earn more revenue• As a result, their citizens benefit from a

higher standard of living• Free trade allows for a larger variety of

foreign goods for the consumer to choose from

• Better quality of life

Impact of Globalization

1) Economic ImpactIncreased Competition Among Nations

Investment and Market• Globalisation means more competition as TNCs

source for the cheapest places to lower their cost of production

• Governments have to compete with each other to attract these foreign corporations to invest

• When China opened its doors to foreign investment in the 1970s, industrial cities like Suzhou, Wuxi and Dalian were formed

Case Studies

Dalian Industrial Park (China)Tanjung Pelepas Port (Malaysia)Don Muang Airport (Thailand)

Dalian (Northern China)

Well-developed infrastructure to support industrial growthSeaport handles high passenger and container cargo volumesAirport handles more than 88 routesMore than 10 banks and financial institutions Renowned financial institutions

Dalian (Northern China)

Foreign manufacturing companies enjoy lower taxation ratesHi-Tech Industrial Park which encourages R&D in ITRapid growth stems from all these initiatives

Tanjung Pelepas Port (M’sia)Rival port along the Straits of MalaccaWorld’s biggest container shipping line, Maersk (Denmark) shifted its business from Pasir Panjang CT in Singapore to Tajung PelepasTanjung Pelepas intends to compete with Singapore and move into the forefront of the transshipment business in SE AsiaThe draw of Tanjung Pelapas its is cheaper rates and flexible operations

Don Muang Airport (Bangkok)

Surging traffic put Bangkok’s Don Muang Airport as 12th busiest compared to Hong Kong (14th) and Singapore (24th)



Investment and Market• Competition for markets and investment is

intense• Countries that are better able to offer incentives

to investors will be more successful in attracting investment and markets

• This results in further growth for the country when infrastructure is more developed



Talent• Highly skilled people are in high demand all over the globe• Globalisation allows people to move freely from one

country to another in search of employment• Advanced economies with stable or shrinking populations

seek new talent pools• Emerging economies seek back their best and brightest• E.g. India’s Brain Drain (e.g. Computer)


1) Economic ImpactWidening Income Gap Between the Rich and the Poor

Due to rapid development in many countries and the spread of poverty in othersDeveloped countries experience rapid income growth as they own most of the manufacturing activities



These developed countries and their TNCs are able to attract investments, skilled labour and resources away from poor areasInternational trade has generated much revenue for them



However, Developing Countries face trade restrictions put up by Developed CountriesThey are not capable of manufacturing better quality goods that fetch higher prices Poorer nations are only attractive for labour-intensive and low-cost ventures


Widening Income Gap Between the Rich and the Poor

The rich developed countries prosper with better opportunities while the poor developing countries face economic uncertainties like retrenchmentWidening income gap can lead to social problems, increasing tension between the rich and the poor

Impact of Globalization2) Social Impact

Increased Awareness of Foreign CultureTravel, the Internet, mass media (products of globalisation allow you to learn more about foreign culture

Loss of Local CultureGlobal (Western) brands dominate consumer markets in developing countriesCreation of homogenous culture across the worldSpread of pop culture and erosion or loss of local cultureNegative influence of youthEnforced beliefs

Impact of Globalization3) Environmental Impact

Depletion of natural resources by TNCsConcern over profits vs. protection of the environmentLack of funds to implement environmental protectionEnvironmental Degradation

Deforestation and Related ProblemsGlobal WarmingEnvironmental Management


Environmental DegradationDeforestation and Related Problems

• Rainforests cut to make way for development• Rainforests cut down for industries, agriculture, housing,

forestry, cattle ranches• Planting of cash crops• Projects to achieve higher level of economic development

Global WarmingEnvironmental Management


Environmental DegradationDeforestation and Related Problems

• Soil erosion, extinction of flora and fauna, flooding and haze• Loss in tourism (haze)• Water pollution

Global WarmingEnvironmental Management


Environmental DegradationGlobal Warming

• Large amount of greenhouse gases produced by increased usage of airplanes and ships

• Factories and transportation also emit greenhouse gases, contributing to the increase in world average temperature.

Environmental Management• Greater awareness• Sustainable development is the key to further growth• Source for alternative energy

Singapore’s Strategies Challenges faced by Singapore:

Strategies to Maximise Opportunities and Overcome Challenges

Diversifying the EconomyTechnology-Intensive, High Value-Added ManufacturingLife SciencesRegional Hub for Services (Education) Tourism (Integrated Resorts)


Diversifying the EconomyTechnology-Intensive, High Value-Added Manufacturing• Life Sciences

– Genetics, new medical treatments– Gene therapy, new drugs, genetically modified

food products– Setting up of supporting institutions like

A*Star IMCB (Institute of Molecular and Cell Biology)

– Help and support biomedical R&D capabilities


Diversifying the EconomyTechnology-Intensive, High Value-Added Manufacturing• Apart from encouraging R&D, Singapore

continues to attract TNCs to set up their high value-added manufacturing activities

– E.g. Seagate (Generate jobs, affirms Singapore’s position as a manufacturing hub)


Diversifying the EconomyRegional Hub for Services (Education) • Complementing local universities, leading

international universities have set up branches in Singapore

– U Penn’s Wharton School of Business, Chicago Graduate School of Business, Shanghai Jiao Tong University

– Strong university sector which attracts talent


Diversifying the EconomyRegional Hub for Services (Tourism)• Generate economic growth

– Two Integrated Resorts (IRs) will be built in Marina Bay and Sentosa

– Stiff competition from other countries as tourist destinations

– Singapore cannot offer natural tourist attractions and so must offer innovative man-made attractions to attract tourists

– Investment of capital by investors Jobs and economic growth


Nurturing the Growth of Small and Medium Enterprises (SMEs)

Venturing Abroad

Expanding Market Reach Through Economic Co-operation



Provide jobsSupport operations of TNCs by supplying them with components (e.g. supplying thread, buttons to a garment factory)Enhance the attractiveness of Singapore as a regional manufacturing and services hub



Problems faced by SMEs• Unable to compete with big corporations due

to a lack of resources (e.g. small furniture shop vs. IKEA)

• Lack expertise in using advanced technology • Family-run business Shortage of skilled

personnel• Small domestic market



Helping SMEs• Loan schemes from banks• Association of Small and Medium

Enterprises (ASME) set up to provide enterprises with help

• Training, regular seminars and workshops• Tax exemption for new companies



Problems faced by SMEs• Unable to compete with big corporations due

to a lack of resources (e.g. small furniture shop vs. IKEA)

• Lack expertise in using advanced technology • Family-run business Shortage of skilled

personnel• Small domestic market


Venturing AbroadDue to limited resources, Singapore has to look overseas to achieve further growth

• Regionalisation Investing in countries with land, labour and new markets

– Allows Singapore and the host country to grow and promotes development in the region

– China (Suzhou)– India (Karnataka)

• Spread investment across the world allows for Singapore’s growth to be maintained even if markets and investment opportunities in one country / region is weakened

Why Karnataka?

Near Mumbai, Chennai and New Delhi

Skilled IT Professionals

Encourages Foreign Investment and Supports Businesses



Due to our small population, we have a small domestic marketEconomic and trade ties must be established with other countries to enable local companies to sell their goods to overseas markets• Sign Free Trade Agreements (FTAs)



Benefits of FTAs:• Enjoy more choice in goods and services• Standards will improve with increased

foreign competition• Singapore companies can sell their goods

overseas and increase their profits• Local companies find it easier to venture

abroad



Establishment of Special Economic Zones (SEZs)• A geographical region in a country where

there are less stringent economic laws• Zones of rapid economic growth by using

tax incentives to attract foreign investment


Managing Resources EfficientlyDeveloping PeopleAttracting Foreign TalentManaging the Environment• Managing Limited Land Resources• Co-operation with Regional and

International Organisations• Public Education


Managing Resources EfficientlyDeveloping People•Promoting Local Entrepreneurship and

Technopreneurship– With globalisation, business competition

will increase– Singapore needs more local

entrepreneurs to take risks and come up with products to compete with global competitors


Managing Resources EfficientlyDeveloping People•Promoting Local Entrepreneurship

and Technopreneurship– Amending bankruptcy laws to allow

failed entrepreneurs to start again– Recognising outstanding

entrepreneurs


Managing Resources EfficientlyDeveloping People

• Promoting Continuous Learning among the Workforce– Globalisation will render some jobs obsolete– Singapore Workforce Development Agency (WDA)

established to ensure workforce remains competitive

– Skills Upgrading (Employability Skills Systems – ESS)– Equip workers with skills to cope with new demands

and job environments– Skills Development Fund (SDF) – financial assistance

to employers to encourage training and skills upgrading


Managing Resources EfficientlyAttracting Foreign Talent• Declining birth rate and requires new skills in

a knowledge-based economy– Need to attract foreign talent to meet manpower

needs– Foreign Talent also brings in foreign business

investment potential– Create more business opportunities More Jobs– Adds diversity to our cultural landscape and makes

us cosmospolitan– Foreign Talent with specialised skills

Three Pillars of Sustainable Development


Managing the Environment• Managing Limited Land Resources

– Singapore is small (680km2) so land planning is important to maximise land use

– Challenging not all land can be developed

– Land use planning must ensure that high-standard facilities for housing, transportation, recreation, commerce, defence and education must be built to ensure sustainable growth


Managing the Environment• Managing Limited Land Resources

– Preservation of nature sites– Singaporeans can enjoy natural environment– Waste Disposal

– Current facilities on Pulau Semakau landfill will last up to 2030

– Need to prolong lifespan while sourcing for alternatives

– Infrastructure includes waste disposal plants at Tuas, Ulu Pandan, Tuas South and Senoko


Managing the Environment• Co-operation with Regional and International

Organisations– Co-operating with ASEAN to solve the haze issue– Helping Indonesia detect forest fires with satellite

imaging– Hosting ASEAN Ministerial Meeting on Haze – Globally, Singapore signed agreements to restrict

the use of harmful ozone depleting substances – Phased out the use of chlorofluorocarbons (CFCs)


Managing the Environment• Public Education

– For effective long-run environmental protection, Singaporeans must adopt environmentally-friendly ways and be instilled with a sense of responsibility and personal interest to keep their surroundings clean

– Education in schools and for the general public– Recycling and waste minimisation– Clean and Green Week– Bring Your Own Bag Day

Globalization Chapter 2, Sec 4 Social Studies. What is Globalization? The process by which PEOPLE, THEIR IDEAS and THEIR ACTIVITIES in DIFFERENT PARTS.

Documents

world slide

images slide

movement slide

yqe4j5mxr1m slide

high speeds slide

integrated globalization

globalization chapter

people containerisation