International Business Environment: Advantages and Disadvantages of Globalization for Singapore

Running head: BUSINESS ENVIRONMENT
International Business Environment
12/15/2018

BUSINESS ENVIRONMENT 1
Table of Contents
International Business Environment..........................................................................................2
Task 1: Globalization and Trade................................................................................................2
Advantages of Globalization for Singapore...........................................................................3
Gross Domestic Product.....................................................................................................3
Foreign Direct Investment..................................................................................................4
Increase Labor Flows.........................................................................................................4
Low Inflation......................................................................................................................5
Low Unemployment...........................................................................................................6
Disadvantages of Globalization for Singapore......................................................................6
Vulnerable to External Shocks...........................................................................................6
Vulnerable to competition..................................................................................................7
Vulnerable to Global Business Shifts................................................................................7
Inflation..............................................................................................................................7
Singapore Encourages and Restrict International Trade........................................................8
Import Tariffs.....................................................................................................................8
Trade Barriers.....................................................................................................................8
Task 2 Environments..................................................................................................................9
Political Environment.............................................................................................................9
ACE Start-ups..................................................................................................................10
Capability Development Grant........................................................................................10
Early-Stage Venture Grant...............................................................................................11
PIC i.e. Productivity and Innovation Credit.....................................................................11
Technology Enterprise Commercialization Scheme........................................................11
References................................................................................................................................13

BUSINESS ENVIRONMENT 2
International Business Environment
In the twenty first century, the environment of the business is becoming very multifaceted,
interdependent, and vibrant. Management of the business need to rearrange their policies and
styles of management as per the world’s region, they are working in (Gupta, 2013). The
characteristic challenges that are experienced by the management are cultural, economic,
political, legal, and technological. In addition to the huge opportunities, while working in the
international community, it is also related to the comparative high risks and the probable
return on investments in the international market (Brown, 2013). The report is intended
towards analyzing the business environment of Singapore to identify possible business
opportunities for Sainsbury. Besides this, it will highlight the advantages and disadvantages
of globalization on Singapore and discussion of the how the country can encourage or restrict
its international trade with other nations.
Task 1: Globalization and Trade
Globalization is the procedure of integration and interaction among businesses, governments,
and people worldwide. As a multifaceted phenomenon, globalization is said to be a form of
capitalist expansion, which involves the national and local economies integration into a
worldwide, unfettered market economy (Beck, 2018). Globalization has developed because
of advances in communication and transportation technology. With improved worldwide
interactions comes the expansion of international culture, trade, and ideas. Globalization is
mainly an economic procedure of integration and interaction that is related to the cultural and
social aspects (Stiglitz, 2015).

BUSINESS ENVIRONMENT 3
Advantages of Globalization for Singapore
Gross Domestic Product
Source [((Acme Themes, 2018)]
Singapore is considered as one of the best examples while talking about globalization. After
getting separated from Malaysia and experiencing Cold War, Singapore currently lies under
the countries third world group and First World in South East Asia with positive economic
growth. The globalization has supported Singapore in attaining definite economic growth by
enhanced worldwide trade. Definite growth is the actual growth in Gross Domestic Product, a
rightward move of Aggregate Demand curve. Growth in the net exports to the remaining
world increases AD, which in return results in an equivalent rise in the GDP via the
multiplier effect. For economic growth, the country is majorly dependent on exports. In spite
of this, the new exports create the biggest constituent of the GDP of Singapore (Acme
Themes, 2018).