3-1 Key driving forces of Globalization

Developments of Transportation

Developments in Transportation is one of the factors that drives globalization.

Improvements in speed and size of transport modes and development of efficient and integrated transportation infrastructure such as seaports, railways and expressways have “shrunk” the world. This has shrunk the world because the speed, cost and time taken to move from one place to another has significantly reduced. This has increased the movement of ideas, cultures, goods and services all over the world, leading to greater interconnectedness.

Singapore has an efficient and integrated transportation system which facilitates the movement of people, goods and in turn the exchange of ideas, between countries.

Changi Airport serves about 6700 flights per week to and from Changi Airport. It welcomes more than 100 airlines and serves 320 cities in 80 countries and territories. With the construction of new terminals 4 and 5 the traffic through Changi is expected to increase. This improvement in infrastructure can translate to more efficient and faster movement of people and goods across the world.

Growth of Multinational Corporations

Growth of Multinational Corporations is one of the factors that drives globalization.

MNCs are businesses with economic activity in more than one country. The global span of their operations drives globalization as they increase the economic interconnections between people and goods throughout the world. They control aspects of international trade, investment and facilitate the exchange of ideas between countries.

Singapore is a major site of international business today. Since the mid-1980s, many Singapore companies expanded overseas and continue to do so today such as Singtel and EuYanSang. This has created interconnections and interdependent relationships between economic activities in Singapore and the rest of the world. Foreign-owned MNCs have brought many benefits to Singapore in terms of providing employment, higher wages and bringing in new technology and expertise to sustain Singapore’s competitiveness.

Advances in Technology.

Advances in Technology is one of the factors that drives globalization.

The advancement in technology is important as it creates interconnections between ideas and activities of people in different parts of the world. Communication across longer distances can be done in a shorter period of time.

For example, the evolution of the mobile phone offering many special features and functionalities such as faster processing speed and compatibility with more advanced mobile networks has made it more convenient for people to communicate anytime and anywhere. Today, with about 2.2 billion mobile internet users worldwide, many people are able to communicate through messaging and video calls, as well as gain access to a vast amount of information on the Internet.