Globalisation

Globalisation is a phenomenon that has occurred for centuries yet has emerged in the limelight in the recent decades. As globalisation accelerates in our environment, we are more inclined to integration and interdependence. In reminiscent of a coin, globalisation too has impacted the world in both positive and negative manners (Chen, Puig and Walker 2007).

Both Singapore and America has reaped benefits from the process of globalisation taking effect in the economy, industries and various business sectors.

After Singapore gained independence, the country’s globalisation strategy was to produce jobs to tackle the rampant unemployment in the workforce. With effect, the presence of multinational corporations (MNCs) tackled the unemployment issues in return of lower cost operations. This proved to be a feasible plan however, the issue of labour shortages occurred as a consequence of depending on foreign labour.

As such, the economy suffered due to a decrease in productivity in the industries. To remain competitive against the world economies, Singapore encouraged local companies and MNCs two key policies - to utilise operation channels which were capitally intensive and the need to raise standards in skills and value add production. The main goal was to hoist technology in the manufacturing sector in Singapore.

Despite the adverse effect of MNCs on the productivity of industries, MNCs have been instrumental in driving Singapore’s economy with technology, resources and management of expertise (Huang, Roy, Ahmed, Heng and Lim 2002).

It is mandatory for companies to manipulate their opportunities and strengths to be able sustain them in the streak of competitiveness globally. Hence, Singapore chose to stress on advocating local companies to internalize in the 1990s. They were persuaded to continuously upgrade their skills, ensure diversification in their operations and inculcate a strong business mindset. To attain a standing of a well developed country,...