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Other JCs Set A Q6b Discuss whether a modest and gradual appreciation…

- - - - how sg benefits from globalisation with low inflation
        
        AEG
        
        improve BOP position
        
        increase invesement
        
        investors are more willing to invest in a country that has price stability
    - - effective
        
        helps mitigate cost push inflation which is impt for sg given that we are heaviy reliant on imports
        
        ensures that we are not limited by a small dd
        
        likely to be effective
        
        it is impt for affecting our imports and exports
        
        the negative impacts are unlikely to occue becuase sg is near full nmt
        
        so no negative growth
        
        even if have negative growth it can be mitigated
      - not effective
        
        appreciation may conflict with other goals
        
        dampens inflaitonary pressures if economy is near full nmt
        
        if economy is below full nmt it causes negative growth
        
        lowers SOL
  - - - how sg benefits from globalisation with low inflation
        
        increase in X-M
        
        actual EG
        
        effective or not
        
        not effective
        
        increased dependency on external trade
        
        fall in import tariffs
        
        increase in imports
        
        CA deficit
        
        deg of tech is limited since foreign MNCs train their own staff rather than locals
        
        neessary
        
        due to our small dom dd
        
        effecive
        
        FTA bring about a fall in prices for raw materials