Economic Globalization

I feel that the term Economic globalization refers to the transfer of economic resources from one country to another. This
process is basically driven by International trade, Foreign Direct investment, Capital market and Labour market.

For example, Nike an American company has set up factories in Indonesia. Nike has made use of Indonesia's cheap labour to
lower cost production and gain profits, in turn it has provided jobs for workers there. This has helped to improve Indonesia's
economy with increasing employment figures as Nike started to expand its factories across the country.

In brief, Capital rich countries invest in poor countries while resources(labour, natural) of developing countries are sold to
developed countries.This economic interaction between/amoungst countries causes the world to be more integrated and
interconnected

Economic globalization refers to the expansion of the three main types of cross-border business activity - international trade,
Foreign Direct Investment (FDI) and capital market flow. For example, FDI by Nike where production facilities are set up in
Indonesia, the Philippines, Thailand, Vietnam, and in other low wage nations to lower cost of production.

Economic globalisation refers to the increasing interdependency of the economis of various countries. it is beneficial in the
sense that it opens up the market pool for small nations like Singapore and it allows us to diversify our portfolio by investing in
different countries. However, economic globalisation also increases the vulnerability of countries because of the increasing
interdependency. For example, during the 2008 Financial crisis, the global economy was widely affected even though it started

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in the US. The contagion effect was also demonstrated during the Asian Financial crisis, where the collapse of one of the banks

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in Thailand spread to the rest of the Asian countries Thus, with economies wth more integrated, countries are also prone to
more financial vulnerabilities.

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I believe that economic globalisation refers to the integration and interdependence of the economies of the nations of the world.
This is mainly due to trade and foreign investments like FDIs. By affecting the export, import and investment components of

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GDP, the economic growth of each country is heavily dependent on other countries as well. Smaller countries like
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Singapore, being a "price-taker", would definitely be affected by the global market conditions to a greater extent.
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I believe that technology is a main driving force in economic globalization. It is only with the development of steam
engines, ships and planes etc. is trade made inherently possible and easier. In modern times, the internet would be this driving
force. With the click of a button, people can easily buy international goods over eBay. In fact, investors can wire money and
invest too over the internet.
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Economic globalisation is defined as the increasing economic integration, and interdependence of national, regional and local
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economies across the world through an increase of cross-border movement of goods, services technologies and capital.
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An example of Economic Globalisation includes the creation of GATT (General Agreement on Tariffs and Trade and World
Trade Organization, which has led to the cutting down of tarrifs/barriers and made countries open up their capital accounts.

Economic globalization refers to the integration of world economies giving rise to freer and increased trade, increased capital
and labour movement. It also extols the values of modern capitalism - private ownership and the greater control of resources.
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With the rise in greater trade and movement, it has also led to the creation of multilateral organizations such as IMF to ensure a
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more stable economy. Economic globalization also gives rise to the New International Division of Labour, greater specialization
as well as greater capitalism on the concept of comparative advantage. An example would be Apple branch plants being
relocated to China which has lower labour and land costs. Even within SIngapore, many companies take their production
processes across the sea to Johor which has cheaper production costs.
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Economic globalisation is broadly defined as the shrinkage of economic distances between nations which consists of two
separate but not necessarily mutually exclusive trends: globalisation of production and trade and globalisation of finance and
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capital flows. Formation of economic entities such as MNCs that span across national borders, reaping economies of scale,
scope, increasing returns to scale and capital intensification.

Pros
- Specialized production based on allocation of resources
- Availability of diverse goods and services across national boundaries.

Cons
- Consolidation of economic leverage benefitting the vested interest of select group of individuals.
- Destruction of local businesses and culture
- Income inequality because of limited economic opportunities based on birthright. Lack of meritocracy
- Degradation of environment. Externalities not considered in the purchasing decicsions.
- Inter-connectedness of financial contagion.

Definition: Process of interaction and integration amongst countries, a process driven by international trade and investment and
aided by information technology.

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 Benefits of Economic Globalisation:

-Increases capital inflows to Singapore.

-Labor movements (Inflow of foreign talent into Singapore) Contribute to the country’s GDP.

-Increased Exchange of technology and ideas. Communication and transport networks that are heavily dependent on
technology become more advanced, increasing the convenience and living standards of citizens, hence their welfare ultimately
increases as well.

-Influx of Foreign Direct Investments (FDI), creation of jobs. Singapore ranked first in the Asia Pacific Investment Climate Index
for 2014, repeating its feat for the past two years. Singapore’s FDI overseas also accounted for 21.4% of GDP in 2013,
according to the World Bank. This is another example we can see how economic globalisation can have a significant impact on
the domestic economy.

Problems associated with Economic Globalisation:

-Brain Drain. The emigration of trained and talented individuals for other nations, due to conflict or lack of opportunity where
they are living.

-Economic globalization seeks to spur Brain Drain when the demand of high-level skilled workers is greater in a foreign country
compared to the individual’s home country. This results in a decrease in the home country’s productivity that could otherwise be
generated.

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-Exact costs and benefits are difficult to quantify, however there is still a potential amount of income lost due to workers
immigrating overseas.

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-The extent of this problem can be seen: About 35 million people of Chinese origin are living in more than 150 countries around
the world.

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Economic globalisation involves the global economy becoming more integrated and interdependent. As such, due to the
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interdependency of countries, this has aided the process of trade integration whereby trade is being promoted through
decreasing trade barriers. Trade barriers can be in the form of tariffs and non-tarrifs barriers such as export subsidies or local
content requirement just to name a few. This effectively led to countries having the competitive advantage in producing a good
to trade with other countries which have other competitive advantages. As such, due to this specialization, firms are able to
enjoy large economies of scale and as a result cause a reduction in producing the good.
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Some of the advantages of economic globalisation are the transfer of technology, skills and entrepreneurship and the most
obvious factor is economic growth. This effectively help Singapore who are export-oriented due to low natural resources to
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benefit.

However, some of the disadvantages can be seen when countries dump cheaper products into importing countries and as a
result affected the local production of goods. This might seem to be harmful in the long run as local firms are not able to
compete with the cheaper products of imports.
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Economic globalisation is a phenomenom wher an interdepence of a country with another countries exist. In other words, it is a
phenomenom where a country's economy become significantly dependent with another countries. The example of economic
globalisation is international trade where countries export things which they have a comparative advantage in the production
process and import things which relatively exorbitant for them to produce. Real world example: countries like Indonesia
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exporting palm oils because Indonesia has the comparative advantage in producing the palm oils.In the contrary, Indonesia
importing cars from Europe, United States, and Japan which is relatively exorbitant for Indonesia to produce cars.
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Economic globalisation is certainly characterised by the increase in international trade, whereby national economies are being
merged into a global economy via the improved interconnectedness between different countries. As a result, there is a surge in
the exchange of goods and services. Take for example the Personal Computers market n Singapore, where there are no major
laptop manufacturers, and yet there is still a high computer penetration rate. This is because Singapore heavily imports
computers from foreign manufacturers such as Dell and Lenovo. Hence, it can be seen that economic globalization helps to
widen the choices for consumers worldwide.

Economic globalization is also related to the global flow of labour, whereby it is now easy to emigrate and work in a country
different from one's origins. Domestic helpers primarily from the Philippines and Indonesia often travel to Singapore and to
Hong Kong in order to find work which provides substantial incomes. These often help to provide more opportunities for people
from less fortunate backgrounds.

The global economy also needs to be managed, and international organizations such as the World Bank and the International
Monetary Fund have been set up to serve that purpose. The World Bank helps to fund development projects worldwide
whereas the International Monetary Fund acts as a lender of last resort during financial crises so as to prevent dangerous
financial contagion.

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 Economic globalization can also be observed in the internationalization of numerous supply chains worldwide, whereby
production is no longer confined within national boundaries. This is especially the case for MNCs, which can shift their sources
of production to regions where production costs are lower, hence generating more competitiveness. This is especially the case
for sophisticated goods such as automobiles, whereby the vehicle chassis, the tyres and the seats can be manufactured in
different countries based on their various comparative advantages.

Economic globalization is the integration and interdependence of the global economy, where there is more international trade
taking place, more foreign direct investments (FDI) and a reduction of trade barriers. The economies of different countries
depend on each other to operate successfully. Some benefits of economic globalization are the Free Trade Agreements (FTAs)
and specialization of goods. FTAs such as the NAFTA (North American Free Trade Agreement), allows Mexico, Canada and the
United States to trade without and significant import or export restrictions. Secondly, by specializing in producing certain goods,
the country can produce a higher quality of goods at a lower cost of production. Thus, consumers can benefit from this as they
can consume the goods at a lower price too. Another benefit of economic globalization could be the movement of labour where
people move to another country to contribute to the economy, for example the United Kingdom is employing nurses from India
due to local labour shortages, or Singapore hiring more foreign workers as labour costs is lower. However, economic
globalization also comes with its costs. It may harm economies in less developed countries as the economy there may not be
developed or ready to compete with other more developed economies. Furthermore, countries with limited job opportunities
such as China and India find it difficult to keep skilled workers which results in a labour drain. These workers would go to
countries with a more developed economy so that there are more job opportunities there. Therefore, economic globalization
has its benefits as well as its costs.

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Economic globalisation has brought nations closer through the integration of economies and increased trade of goods,

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services, technologies and capital. This leads to benefits such as improvement in the welfare of developing nations, increase in

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productivity, increased sharing of technological innovations, and many more.

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However, even though there are evident benefits from this form of globalisation, nations should be cautious of overdependence

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with each other, as one the state of one’s economy can affect another. This is evident in the recent financial crisis where the
downfall of the US market resulted in ripple effect felt by nations worldwide.
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Economic globalisation is the phenomenon where international trade in goods and services has become increasingly important,
international financial flows and consumer and producer services too. There are more cross border activities, FDI and
capital.The world/countries hence become more interdependent and production become more decentralised. The two major
driver of economic globalisation are reduced costs of transportation and communication in the private sector and reduced policy
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barriers to trade and investment on the part of the public sector.

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Example will be the flow of labor where foreign talent, foreign workers can come into Singapore and work and the
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regulations/policies are more laxed.

Another example is lower cost of goods and services due to decentralisation of production. As different parts of production are
outsourced to save cost and increase efficiency.

Economic globalisation largely refers to four main types of cross-border activities – international trade, FDI, capital market and
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labor flows. It primarily comprises of the globalization of production and finance, markets and technology, organizational
regimes and institutions, corporations and labor
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Examples of economic globalisation can be easily observed in the economy of SIngapore, where there has been increasing
economic integration and interdependence of national, regional and local economies across the world. For example, trade and
tourism can be seen happening at the Port of Singapore Authority (PSA), large foreign multinational corporations, foreign labor
contributing to the SIngapore economy as well as capital flow through the Singapore Stock Exchange.
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Economic globalisation refers to the deliberate movement by individuals, multinational corporations (MNCs), transnational
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organisations and government to increase the flow of goods, services, people, real capital and money across national borders.
In short, it is the ease in flows of capital as seen in the amount of trade and foreign direct investment FDI around the world.

Some benefits of economic globalisation includes:

- An increase in the production activity leading to a higher GDP growth. Economic globalisation encourages international
trade, which expands the target market of domestic producers. Domestic producers will then be able to reap economies of
scale and countries may choose to specialise due to theory of comparative advantage.
- FDI helps developing/emerging countries grow as FDI brings with them not only capital but also expertise/knowledge. FDI
also helps build the infrastructure needed by emerging countries.

Some negative side effects of economic globalisation includes:

- Increased volatility of economies as many developing/emerging countries are too dependent on certain economies such as
the US
- While international trade has seen a reduced amount of tariffs and quota, it is not totally free for all as there are other forms
of protectionism (through labelling or environmental and health regulations).

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 Economic globalisation is the growing integration and interdependence of economies around the world. The key features of
economic globalisation are the growing scale of international trade, flow of capital across borders and profitable Foreign Direct
Investments (FDI).

There are gainers and losers in this phenomenon. Economic globalisation is said to create new opportunities. For instance, the
rise in FDI in developing countries is seen as a balancing act as it helps their economy to grow at a faster rate. Technology
producers, Cannon and Panasonic are moving the more labour intensive production process to the Philippines where labour
resources are abundant. This helps to bring in labour income to the Philippines. By moving the production to where the
operation cost is the lowest, MNCs can cut cost resulting in greater profit margins and lower cost for consumers.

However, there is a flipped side to every coin. There are also many arguments of MNCs exploitation, be it labour, in sweatshops
where the workers are underpaid and face harsh working conditions, or the environment, for instance, the American
multinational energy corporation, Chevron, was caught in a $19bn lawsuit for its pollution of the Ecuadorean Amazon.

Economical globalisation refers to the increasing economic integration and interdependence of national, regional and local
economies across the world through an intensification of cross-border movement of goods, services, technologies and capital.

This form of globalisation may lead to higher market diversification and product diversification. For instance, in Singapore,
product diversifications is practiced in the form of producing not just pharmaceutical products, but also precision instruments
and electronics. This leads to specialisation and thus lower costs of production.

On the other hand, there may be an increase in the prevalence of capital flight, where assets ormoney repaidly flow out of a
country due to rises in unfavorable financial conditions such as taxes, tariffs, labor costs and capital controls. This results in a

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sharp drop in currency exchange rates and thus reduced purchasing power, causing a liquidity crisis. There may be rises in

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international inequality as the differences in income between the rich and the poor countries increase. There may also be a
proliferation of tax havens as corporations strive to mvoe themselves to areas with reduced taxation, and thus result in

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governments beind involved in tax competitions.

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This may thus lead to cultural globalisation as practices and cultures mainly flow from developed countries to the rest of the

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world. rs e
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Economic globalization is the increasing economic integration and interdependence of national, regional and local economies
across the world through an intensification of cross border movement of goods, services, technologies and capital.

As we progress towards an international platform of trade and interaction, there needs to be an overarching governing body to
facilitate this process. A real world example is the eventual formation of WTO, which was formed to ensure that trade flows
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smoothly between countries, and serve as a forum for cross border negotiations.
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Economic globalisation is the increased interconnectivty and interdependecy of countries upon one another for economic
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growth. Economic globalisation is carried out through flows of goods and services (exports and imports), capital (FDI, foreign
portfolio investment) and labour (international labour migration).

Economic globalisation can be advantageous because MNCs and countries can utilise their comparative advantage to trade
with other countries, thereby increasing the total global output at lower prices, which is beneficial for the consumer.
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However, the increased interdependency can be dangerous because of the contagion effect. in 2008, the Subprime Mortgage
Crisis which started in the US had unprecedented negative effects upon the entire world as consumers and investors began to
lose confidence in the global market and exercised their herd mentality in witholding their spending and investment.

Expansion of
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(a) international trade

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(b) FDI
(c) capital market
(d) labour flows

Engage in free trade, no trade barriers.

e.g. NAFTA which allows Mexico, Canada, and the United States to exchange products and services without significant import
and export restrictions.

Early 2000 full liberalisation in China; could travel around the world freely. Wealth can create more freedom. Politics and
economics can tie together.

Economic globalisation means the integration of economical markets across geographical boundaries. In the modern day
context, the main forces of economic globalisation is trade. This is facilitated by Free Trade Agreements, Regional Free Trade
Area and other trade arrangements. In recent years, more economical links between countries have been identified, such as
labour movement, foreign investment and intellectual property. Many countries have taken on FTAs to expand the market
outreach, while at the same time exposing their markets to the risk of ripple effects, both positive and negative. Singapore,

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 being the Southeast Asian country with strongest links to the western world, was the first in Southeast Asia to fall into recession
during the 2008 financial crisis.

Economic globalisation is the integration of various countries economy into a interrelated web. This has been promoted by
organization such as the World Trade Organization (WTO) which actively pushes for lower of trade barriers to promote further
international integration. The integration of the global economy is further aided by advacement in ICT which allows for rapid
communciation and decision making from around the world. While eocnomic globalisation do have its postive points, it does
have its short-coming. One example will be that of the sub-prime crisis in 2008 where the severe economic downturn in the
United States have a ripple effect across the entire world.

Economic globalization can be seen as a means for a company to move its products into the international market through the
use of a country’s management, culture and people (Davies, 1993). It brings about considerable shifts in the distribution of
economic activities around the world, radically altering the relationships between different units of production in the process.
More importantly, globalization convolutes the already increasingly complex corporate structures in existence.

An example of a company/firm that has benefited from economic globalization is local company Breadtalk. While Breadtalk has
managed to break (successfully?) into foreign economies (particularly Asia – China constituting the bulk), its overseas
outlets/stores are not mere replicas but calibrated to suit local demand and tastes. For instance to ensure that there is a fine
balance between guarding the Singaporean brand and adapting to foreign expectations, Breadtalk insists on offering its
signature Flosss buns across all of its overseas outlets. This includes predominantly Muslim communities such as those in
Indonesia, Malaysia and the Middle East. In order to attract customers in these countries, Breadtalk took efforts to obtain halal
certifications (BT Grp Ltd, 2004). The Flosss bun for example, is topped with chicken floss instead of the usual pork floss.

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Without this understanding, long queues at Breadtalk counters in Jakarta and Kuala Lumpur would not have been possible

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(Wicaksono, 2007).

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Underscored here is the idea that while globalization has indeed provided a platform for companies to venture abroad, it
requires meticulous planning and strategizing before the benefits/rewards can be reaped. Hence, economic globalization

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should NOT be seen in a wholly positive manner but fraught with uneven geographies and power relations.
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Economic globalisation refers to the ever increasing integration and interdependence of world economies. The effects of
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economic globalisation can clearly be seen in international trade where countries depend on one another. For example, the
increase in trade has resulted in Singapore having to rely on raw materials imported from other countries so that we can
manufacture them into items like computer products and export them. Similarly, other countries might have to import these
products and thereafter, export their own goods as well.
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While in theory, this sounds like a sound way of doing trade, economic globalisation has impacts when the economy of a
country takes a downward fall, as can be seen from the recent global recession. This then affects the economies of other
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countries as well, like how Singapore, an open trade dependent economy, suffered a recession as well.
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Economic globalisation refers to the geographical dispersion of economic activities which remain functionally integrated,
resulting in a global economy which is increasingly interdependent and integrated.

This process is propelled by the role of transnational corporations (TNCs), who continually search for ideal locations to situate
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parts of their production process, taking into consideration factors such as cost, infrastructure and talent pool. As these TNCs
expand their operations globally, more economies are 'plugged in' to the global economy. For instance, Nestle has offices in
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more than 100 countries across 6 continents.

Economic globalisation refers to the increased interconnectedness and interdependence of the economies of different
countries. This phenomenon is driven by technological advances which has reduced the cost of making transactions across
borders and distances. Economic globalisation is generally associated with neo-liberal policies, which include reduction in
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tariffs, or the removal or reduction in non-tariff barriers to trade.

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Since last year, a trade and investment deal known as the Transatlantic Trade and Investment Partnership (TTIP) is being
negotiated between the European Union (EU) and the US. Since economic barriers in the form of tariffs between the EU and
the US are already relatively low, the TTIP aims to deregulate both markets and make it easier for companies on both sides of
the Atlantic to access each other's markets.

Proponents of the TTIP say that the agreement will result in multilateral economic growth the the creation of hundreds of
thousands of jobs, while critics say it will lead to a decline in food safety standards, a degradation of the environment, and the
erosion of social and cultural values held in high regard in the EU.

Economic globalization refers to the removal of economic boundaries between nations, leading to increased trade in goods and
services as well as capital flow. Economic globalization was only possible through political globalization - whereby governments
opened up their country's borders.

Some benefits of economic globalization include increased integration of economies, lower prices due to increased competition
in the market and increased consumer choice from diversification. However, there are also costs such as the exploitation of
labour and wage theft, whereby the employer withholds a portion of the employee's rightful salary.

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