Homework Question on Political Economy in Singapore
- Using the COUNTRY you were assigned earlier in class – please answer each of the following questions:
- What is the predominant political-economy approach of your country? Free trade, not free trade or mixed. Please explain.
- What are the major products made in your country and which of these have significant political constraints in global trade?
- Given what you discovered about your country’s products and political constraints, what other products may you focus on to increase global trade that are not constrained by political / legal issues?
- Among these products, which have the best market conditions (supply/demand) now?
- Which have the biggest potential markets into the future?
- What additional things might your country do to promote a more competitive position for these products and possibly some of the others that are constrained? Sum up – given the COUNTRY you are covering, what are the biggest challenges, biggest opportunities, and what will you do to improve the situation using political-economic tools available to you as a policy-maker / business owner? the country is Singapore
Homework Answer on Political Economy in Singapore
One of the primary commercial hubs in the world is Singapore, a country situated in East Asia. The political economy of the country has changed over the years, making it one of the Four Asian Tigers. Among the variables that have contributed to economic success in Singapore is its membership to AFTA, an economic alliance that aimed at enhancing trade among the East Asian countries through the elimination of tariffs.
The nations benefit from the alliance due to the fact that there is a larger market for their products and also the profit margins in the business are higher due to reduced costs of doing business. The elimination of tariffs by the ASEAN nations in 2010 is a primary contributor to the economic success of the nation. The nation’s diversified economy is heavily dependent on trade especially manufactured products contributing to about 30 percent in 2013.
Singapore participates in both import and export trade where it is ranked position 15 and 14 respectively Trade is the primary pillar of Singapore’s economy, and it has the highest trade-to-GDP ratio in the world. Due to its skilled workforce, corruption-free business environment, location, advanced infrastructure and low rates of taxation, the country has attracted many foreign investors. Multinational companies from Japan, United States, and Europe find the country very attractive to do business; more than 7,000 companies from the regions have established their businesses in Singapore.