Economics Assignment- One Belt One Route (OBOR)

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Added on 2020-05-28

Economics Assignment- One Belt One Route (OBOR)

Added on 2020-05-28

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Running head: ECONOMICS ASSIGNMENTEconomics AssignmentName of the UniversityName of the StudentAuthor Note

Economics Assignment- One Belt One Route (OBOR)_1

1ECONOMICS ASSIGNMENTExecutive SummaryOne Belt One Route (OBOR) is an initiative that is taken by China in 2013. There are somecountries, which get benefits from this initiative. Singapore is one of these countries, whosupport this initiative. However, there are various factors which were affected by these OBOrinitiatives. In this report, the effect of OBOR on Singapore’s economy is taken underconsideration.

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2ECONOMICS ASSIGNMENTTable of ContentsIntroduction................................................................................................................................3The capabilities of Singapore companies to capture this opportunity.......................................3Infrastructure..........................................................................................................................4Connectivity...........................................................................................................................4The possible challengers ahead facing by Singapore companies:.............................................6Competitive............................................................................................................................6Politic risk..............................................................................................................................7Exchange rate risks................................................................................................................8Financing the projects............................................................................................................8Corruption and poor governance............................................................................................8Impact of the maritime lanes..................................................................................................8The government’s support and assistance..................................................................................9Monitoring financing condition.............................................................................................9Strengthening RMB business hub........................................................................................10Recommendation:....................................................................................................................10Conclusion................................................................................................................................11Referencing..............................................................................................................................13

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3ECONOMICS ASSIGNMENTIntroductionThe president of China, Xi Jinping, took the initiative of the “One Belt One Road’(OBOR) in 2013. This initiative was taken by the President when he visited to Kazakhstanand Indonesia in 2013 (Lim 2015). There, he announced about the Silk Road Economic Beltand the 21st Century Maritime Silk Road initiatives. These two initiatives are known asOBOR. In China, this became an important foreign policy from different aspects. Moreover,this foreign policy helps China to promote economic cooperation with different countriesalong a road rout. Singapore has a very small boundary. However, the economic condition of this stateis very advanced, compare to other countries of the Southeast Asia (Zhang and Xu 2017).The state has tried to adopt different strategic planning. This is because Singapore hasunderstood that they can only survive if they can balance between West and China. The statehas identified since the beginning of 1980s that the economy of China will growsignificantly. They can understand that this belt, road initiatives (BRI) will bring positiveimpact n the economy of Singapore. This OBOR initiative has provided various opportunitiesfor Singapore. As a result, Singapore warmly accepts this initiative. The state remains anearly and strong supporter of OBOR, from the beginning. “One belt One Route” helps bothcountries to increase their international trade with each other. China’s 30% BRIs are inSingapore. The state can play an important role in three chief areas for OBOR. These arefinancial connectivity, infrastructural connectivity and third-party collaboration.The capabilities of Singapore companies to capture this opportunity:Different companies of China are expanding their business in Singapore. However,companies of Singapore can also give complement to those Chinese companies by giving

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