Globalization, which begun with Columbus’ transatlantic journey in 1492, has evolved into a whole new scale that has never been seen before (Friedman, 2007). It has become a worldwide phenomenon marked by the elimination of borders between nations, and is without a doubt an integral part of our society (Vergnaud, 2004). The reasoning behind globalization’s rapid growth is a simple one, the human race is a race dependent on social interaction. Humans can simply not survive without the help of others as by working together humans provide each other with the many resources they need from food to clothing to entertainment.
Singapore, as a state-city with over 5 million residents is one such example. Globalization’s powerful effect has affected the country in many ways, both good and bad, and has transformed the once small isolated island into an economic powerhouse. The way that globalization has most affected Singapore is through the development of free trade. By connecting the world together, globalization created a world where consumers compete at an “immediate information” level, giving them the ability to influence the market right from their desks.
Globalization also created more accessible and safe ways to transport goods. This enabled Singapore, a small country with little natural resources, to find new opportunities to grow and prosper. Thus, allowing Singapore to skyrocket to a staggering GDP per capita of $60. 500, ranking 6th in the world (Index Mundi, 2012) and rank 1st in trade (“The Globalization Index”, 2007). Globalization also has allowed Singapore to develop technologically. So much so, that Singapore ranks 1st in Asia and 3rd globally in technological innovation (“Global Innovation Index”, 2012).
Technology can be seen in all aspects of life in Singapore from health to entertainment to even education. One such example is CREATE or Campus for Research Excellence and Technological Enterprise, an international research campus and innovation hub which both uses and creates innovations in high-end technology. Globalization also creates a weakness in Singapore’s economy, namely leaving the country vulnerable to the effects of volatility in another country.
With the widespread interconnectivity of several different global economies, the fall of just one can have devastating effects on the rest of the world. One such example would be the euro crisis. With 13. 1% of total imports coming from the European region, the euro crisis heavily impacts the Singaporean economy for the worse (“EU Bilateral Trade”, 2012). At the end of the day globalization is a very powerful tool which can cause great benefits but can result in devastating impacts when not used carefully.
Globalization has helped Singapore develop from a small isolated island into one of the world’s economic powerhouses through free trade, technological development and vulnerability to international crisis. Whether globalization is good or bad is still debatable, it is clear that globalization’s impact on Singapore is a significant one. Reference EU Bilateral Trade And Trade With The World. (2012). Retrieved October 18, 2012, from http://trade. ec. europa. eu/doclib/docs/2006/september/tradoc_113443. pdf Friedman, T. L. (2007).
The World Is Flat: The Globalized World In The Twenty-First Century. Penguin. Index Mundi. (2012). Country Comparison GDP – per capita (PPP), Retrieved October 18, 2012, from http://www. indexmundi. com/g/r. aspx? v=67 Mejia-Vergnaud, A. (2004). Effects of Globalization. Society, 41 (3). 66-70. The Globalization Index. (2007). Foreign Policy (163), 68-76. The Global Innovation Index. (2012). Retrieved October 18, 2012, from http://www. globalinnovationindex. org/gii/main/fullreport/files/Global%20Innovation%20Index%202012. pdf