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Being Part of a Globalised World: How do we respond to tensions arising…

- - - - Higher income
      - Greater competition for jobs benefit some as companies may want to higher them
      - Better job prospects
  - - - Continuing Education and Training Masterplan from MOM supports citizens in remaining employable with better/new skills, offers training courses
      - Workfare Training Support Scheme allows older low wage workers to upgrade their skills to remain employable, upgrade jobs and earn higher wages
- - - - Access to new markets abroad
      - Access to lower labour costs and cheaper resources like land
      - American companies dominate global companies as they leverage opportunities from global economy e.g..Pepsi producing potato chips
      - Singapore companies expand operations overseas, gaining higher profits, government offers assistance like loans
  - - - Introduce new features to products and services
      - Anticipate how much market might change and ensure products remain relevant
      - Since 2000, many SMEs have found it harder to compete with larger companies with same services due to globalisation as they have a small domestic market and shortage of expertise and labour, cannot earn enough profit to sustain operations (Carrefour, French hypermarket chain closed only branch in SG after 15 years)
      - Some play complementary role to MNCs eg. MMI Holdings (SME) supplies hard disks to Seagate Technology (MNC)
- - - - Increased tax revenue benefits countries who can improve infrastructure
      - Increase in trade and business makes available greater variety of goods and services for consumption, benefits population
      - 2004 US-Singapore Free Trade Agreement
        
        Tariff savings
        
        Increased trading between SG and partner countries
    - - Foreign Direct Investment
        
        GDP increased from $1310 per capita in 1960 to $71 138 per capita in 2014
        
        In 2012, FDI of $747.7 billion
        
        Investors attracted as SG enhances business and strengthens important activities, enabling them to expand their business
    - - Competition with local products due to FTAs since local products may be more expensive, affecting livelihood of local businesses
      - Little evidence of transfer of knowledge and skills from foreign companies or investors due to FDI
      - Limited employment opportunities from FDIs which do not benefit locals
      - Economic linkages with domestic businesses are weak/do not bring about significant advantages
  - - - 2008 Global Financial Crisis caused US economic downturn, many European banks lost money due to economic interconnections with US