Sustaining Economic Development

(a) To what extent is diversifying the economy the best measure taken by Singapore to overcome challenges and optimize opportunities in a globalising world? Explain your answer. [12]

Breaking down the question:

(i) to overcome challenges and optimize opportunities in a globalising worldThis is the topic of the question. You should make sure that each point is linked back to the topic so that you do not go out of point.

(ii) To what extent: The question requires you to take a stand. You can answer in the following ways:

- Diversifying the economy is the best measure taken by Singapore to overcome challenges and optimize opportunities in a globalising world to a small extent.

- Diversifying the economy is the best measure taken by Singapore to overcome challenges and optimize opportunities in a globalising world to a large extent.

(iii) diversifying the economy:This is the given factor. You definitely need to explain this factor in your essay.

- It should come in your 2nd paragraph. - After which, you need to come up with and explain at least two other factors (3rd and 4th paragraph).

2nd paragraph: Explain given factor diversifying the economy 3rd paragraph: Explain another factor Venturing abroad 4th paragraph: Explain another factor Expanding market reach through

economic cooperation

(iv) the best measure:This part of the question requires you to rank all 3 factors (1 given + 2 other factors) in your essay. The ranking should come towards the end of your essay.

Go back to your stand at the beginning of the essay to decide which factor should come 1st.

If your stand is “to a large extent” at the beginning of your essay then your conclusion should look something like this:

In conclusion, I feel that diversifying the economy is the best measure taken by Singapore to overcome challenges and optimize opportunites in a globalising world. This is because...

If your stand is “to a small extent” at the beginning of your essay, then your conclusion should look something like this:

In conclusion, I feel that expanding market reach through economic cooperation is the best measure taken by Singapore to overcome challenges and optimize opportunities in a globalising world. This is because...

Sample Answer

Diversifying the economy is the best measure taken by Singapore to overcome challenges and optimize opportunities in a globalising world to a large extent. However, there are also other measures taken by Singapore to face globalisation such as venturing abroad and expanding market reach through economic cooperation.

Singapore diversifies its economy by developing more than one sector of the economy. Singapore has ventured into areas like Life Sciences and set up supporting institutions which encourages research and development. This include Agency for Science, Technology and Research (A*STAR) and Institute of Molecular and Cell Biology (IMCB). Singapore also tries to develop its service sector such as education and tourism. Leading international universities have been invited to set up branches here. This is so as to create a strong university sector that attracts talent to Singapore. In addition, Singapore promotes its tourism sector by offering man-made tourist attractions to generate further economic growth and attract tourists to Singapore. For example, it had recently built two integrated resorts in Marina Bay and Sentosa. Thus, diversifying the economy helps Singapore overcome challenges and optimize opportunities in a globalising world by remaining competitive and not depending heavily on any one industry. This is especially so in the unpredictable globalising world, should any of the sectors of the economy slow down, the other sectors can continue to generate revenue for Singapore.

Venturing abroad is another measure taken by Singapore to overcome challenges and optimize opportunities in a globalising world by helping Singapore overcome the problem of limited land and labour resources. Singapore invest in nearby countries that have abundant land, lower labour costs and new markets. The Singapore government and Singapore-based companies provide expertise and capital to develop industrial parks in host countries while the host countries provide land and labour for Singapore companies. Today, for example, many Singapore firms have set up their businesses in industrial parks in China and India, and invested in new markets like the Middle East, Africa and Latin America. Hence, venturing abroad is beneficial for Singapore in a globalising world. The spread of investment across the world ensure Singapore’s economic growth is maintained even if the markets and investment opportunities in one particular region are weakened.

Expanding market reach through economic cooperation is yet another way Singapore tries to overcome challenges and optimize opportunities in a globalising world. Singapore has a small domestic market because of its small population. Establishing trade ties with countries around the world enable local

companies to sell their goods to a larger market. Singapore does this by signing Free Trade Agreements (FTAs) with other countries so that Singapore can export its goods in their country easily and enjoy greater profits. Singapore also cooperates with other countries to set up Special Economic Zones with less stringent economic laws to attract foreign investment. Companies will be attracted to set up their businesses in the zone as they can experience lower tax and other incentives. Therefore, expanding market reach through economic cooperation with other countries has helped Singapore overcome its challenges and optimize opportunities in a globalising world as it allows Singapore to increase its economic revenue despite its small population and small domestic market.

In conclusion, I feel that diversifying the economy is the best measure taken by Singapore to overcome challenges and optimize opportunities in a globalising world. It allows Singapore to generate more revenue from various sectors of the economy and not depend on just one industry. Venturing abroad and expanding market reach through economic cooperation, while important, can be unpredictable especially in a globalising world where there are many ups and downs because they rely on conditions in other countries. However, it is essential to note that all measures taken by Singapore are important to overcome challenges and optimize opportunities in a globalising world because they all work to varying extent to further economic growth for Singapore.

(b) Here are three driving forces of globalisation:

developments in transportationdevelopments in communicationstransnational corporations

Which of these is the most significant force? Explain your answer [13]

Breaking down the question:

(i) How to answer:When they list the points for you, explain each point first.

developments in transportation 1st paragraph developments in communications 2nd paragraph transnational corporations 3rd paragraph

(ii) driving forces of globalisation:This is the topic of the question. You should make sure that each point is linked back to the topic so that you do not go out of point.

(iii) the most significant force:This part of the question requires you to rank all 3 factors in your essay. The ranking should come towards the end of your essay.

I think that developments in communications is the most significant force of globalisation. However, the other two forces have also contributed significantly to the progress of globalisation.

Globalisation could not have occurred without improvement in communication technology. Improvement in technology has made communications among people in different locations faster and more convenient. People across the globe can communicate via tools such as telephone, electronic mail, fax and video conferencing. Satellite technology has enabled messages to be transmitted from one location and received in another part of the world almost simultaneously. Optical fibre systems have very large carrying capacity and transmit information at very high speed. Internet allows consumers to access information about new products and places more conveniently and efficiently. Thus, all these developments in communications has helped the process of globalisation by making people, their ideas and their activities in different parts of the world become interconnected or integrated.

Globalisation is also driven by developments in transportation. Improvement in transportation has ‘shrunk’ the world considerably in terms of time taken to get from one place to another. In a globalising world, there is an increasing mobility of goods and people. Improvement in technology beginning from the widespread use of the steam engine to the commercial jet aircraft, large ocean-going vessels and containerisation has reduced the time and cost of moving goods over long distance. At the same time, countries have built efficient and integrated transportation infrastructure such as airports, seaports, railways and highways to facilitate movement of goods and people. The efficient transport network worldwide has made it possible for goods and people to be moved around the world easily. Hence, developments in transportation has helped the process of globalisation by ‘shrinking’ the world and effectively ensuring that movements of goods and people around the world can be done easily and much faster.

Transnational Corporations is yet another driver of globalisation. TNCs are large global firms that operate in a number of countries and have production or service facilities outside the country of their origin. TNCs relocate their production or service facilities for reasons such as sourcing for new markets, lowering the cost of production and sourcing for components from around the world before assembling the final product. Their worldwide operations are coordinated and controlled by the headquarters which are located in the country of origin. For example, the operation of Toyota Motor Corporation in Singapore is controlled by its headquarters in Japan. Therefore, TNCs is an important driver of globalisation as the ensure economies around the world become more integrated as countries can have businesses operating anywhere outside their national boundaries.

In conclusion, I feel that developments in communications is the most significant force of globalisation. It causes the process of integration to happen more rapidly and efficiently. Communication technology has greatly transformed the way one communicates, conducts business, obtains information and purchases goods and services. While developments in technology and transnational corporations also drive the process of globalisation, they are not as significant as developments in communications. In fact, both these factors depend on the advancement of communication technology to assist in their functions. Communication technology, for example, allows TNCS to coordinate and control their worldwide activities easily by ensuring the headquarters and their branches are able to communicate often and efficiently. Even so, all these drivers of globalisation are important and complement each other in driving the process of globalisation and integration. No one force is powerful enough to be able to drive the process alone without the help of the others.