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Chapter 9 How do we respond to tensions arising from the economic impact…
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- Economic impact on countries
2.1: economic Growth
globalisation-> increased trade and investments --> earn more tax revenue --> more jobs and tax revenue --> business expansion greater trade-more companies want to set up there
singapore: need to tap on global economy for trade through Foreign direct investment and Free trade agreements (exchange of goods and services without tariffs or hindrances --> tariff savings and increased trading ) Eg: eg: US-Singapore free trade agreement est in 2004
sg: small domestic market- need to remian competitive to sustain econ growth- necessary to attract foreign investors-focus on more technology and information driven industries
2.2 economic downturn
when one country is in economic downturn other countries may be affected - withdraw investments and low demand - less income and employmenent
example: 2008 financial crisis started in USA, caused fal of stock markets, decline in demand of goods and services and decrease in industrial production - increase in unemployment
Sg reponse: sGreans -those who lost thier jobs were given help finding new ones and retrained with new skills. Lower income families given rental rebates, small business cd be financed with reduced interest rates as well as increased subsidies for insurance premiums, new businesses and companies given further tax exemptions
- Economic impact on Companies
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- Economic impact on Individuals
4.1 higher income
increased mobility--easier to find jobs overseas--better job prospects and higher income +other perks such as extra allowance, free accomodation and flights home
4.2 loss of income
increasing competition--lower income and risk of losing jobs, due to foreign markets offering lower costs / they shut down tomove to a country with lower production cost/ they workers lose jobs due to redundant skills and inabilty to upskill
sg response: MOM came up with the continuing education and training masterplan to help support singaporeans remain employable with new and better skils - training courses, Workfare training support scheme (WTS for older low wage workers-- allows them to upgrade skills, upgrade jobs, earn higher wages