Singapore's Trade example essay topic

DOING BUSINESS IN SINGAPORE BACKGROUND Founded as a British trading colony in 1819, Singapore joined Malaysia in 1963, but withdrew two years later and gained its independence. It subsequently became one of the world's most prosperous countries, with strong international trading links, (its port is one of the world's busiest) and with a per capita GDP above that of the leading nations of Western Europe. Singapore is located in the South-eastern Asia, islands between Malaysia and Indonesia. Because of this strategic location, Singapore has been known as a trading center almost continuously since the 7th Century, when it was a Sumatran seaport called Temasek. Singapore has probably gone through more changes in the last 30 years than any other country in the world. Family life is particularly important to Asians.

The socialization of children within the family creates powerful patterns, which will remain with your counterpart for life. You will be dealing with the families of your customers, employees, bankers, and other business counterparts. Singapore was settled originally by male immigrants seeking work. Because they left their extended families behind, most families in Singapore consist of only one or two generations.

Today, Singapore is a modern multiracial state. Seventy seven percent of the population is Chinese; fifteen percent is Malay; six percent Indian or Pakistani; and two percent European. Singapore has four official languages: Malay, Mandarin, Tamil, and English. The national language is Malay and English is the primary business language.

The three Asian cultures of Singapore, Malay, Indian, and Chinese, have been influenced by Western culture since the arrival of Portuguese traders in the Sixteenth Century. By the time the British dominated the island, some three hundred years later, local Asians were feeling the full brunt of western imperialism. Its aggressive mercantile spirit and confident Christianity left certain marks, such as the use of English for business. GOVERMENT Singapore is one of the world's few city-states. A city-state is a small self-governed country, primarily dependent upon the commercial activity of a single city. City-states were common in the ancient world and the Middle Ages.

Today only a few survive: Monaco, San Marino, and Singapore. The political history of Singapore is closely intertwined with the person of Lee Kuan Yew, the country's dominant political figure and the only prime minister ever elected. In Asia culture exerts a predominate influence upon politics. There are considerable differences between Asian political systems based upon groups and conformity; on the other hand Western systems derived from concepts of individual rights. Asians prefer the conformity of their own traditions because they want a settled, and harmonious society. Also they tend to be less concerned about legality than westerns.

ECONOMY Singapore has one of the fastest growing economies of the world. Although Singapore has no significant natural resources, its geographical location is key in its success, it possesses a developed infrastructure, a good communications system, political stability and a disciplined work force. Singapore's ability to build export business, develop high technology, and function as a regional base of international corporations, allowed it to create a dynamic economy highly dependent on International trade. In order to operate successfully in Singapore you will need to understand how its economy developed, how it functions, its strengths and weaknesses, the standard of commercial etiquette, and techniques for business negotiation. Business people are people first.

As such, culture is a primary determinant of behavior. Singapore's per capita gross national product exceeds six thousand dollars. Singapore has managed to succeed in business without creating an underclass mired in poverty. There are no homeless. Half the population lives in low rent or government-assisted housing. The government encourages home ownership.

Health, sanitation and recreation standard approximate those in the west. Education is in some ways better. Singapore has no important mineral or agricultural assets. Its domestic market is small. But the Government formula that created Singapore's vibrant economy includes investment in people, incentives for business and free trade policies. Much of Singapore's commercial and economic development was financed through private savings.

A final factor in Singapore's economic success is the government's ability to keep the public informed about the realities of world economics: why wages must be limited, how resources must be prioritized, and why savings and foreign investment are required. Singapore encouraged foreign investment more than any other nation in Asia. A system of financial incentives for "pioneer" industries created many new businesses and new employment. As the first free port of modern times, Singapore set the example for Hong Kong and shows how the world will benefit when all nations trade barriers are removed. In 1993, Singapore's trade totaled $257.1 billion. International trade is the backbone of the country's economy, and since the economy is based on a free trade regime, it allows the free flow of goods into and out of Singapore.

About 96 percent of imports enter Singapore duty-free; there are no quotas, variable levies, minimum prices or similar restrictive measures. Exports follow the same pattern. There are no foreign exchange controls. Therefore, trade regulations are kept to the minimum.

The following nations account for two-thirds of Singapore's trade: Japan, the United States, Malaysia, the People's Republic of China, and the countries of the European Economic Community. By product, two-thirds of Singapore's trade involves petroleum, electronic products, machinery and transport equipment, and basic commodities such as rubber and timber. The monetary Authority of Singapore is responsible for the management of Singapore's financial system. The Board of Commissions of Currency is responsible for currency issue. The Singapore dollar, recently valued at roughly forty-five cents, is a stable currency, which is loosely linked to the United States dollar. MOVIES In a country as diverse as Singapore, the creation of films that are appealing to a market of vastly different moviegoers, is a great challenge.

However, films made in Asia allow to lower costs and can spark the interest not of one country, but of a whole region. For example, the movie "Crouching Tiger, Hidden Dragon", was made in China, but starred a well known Hong Kong star and a Malaysian actress, therefore rendering it appealing to a wider audience. Raintree Pictures is a Singapore film company. It was created in 1998 by Media Corp. Raintree has strive d to produce films that do not look as though they were made in Singapore, but that have a more regional, general Asian feeling. However, one of the problems that Raintree has encountered is the language barrier.

With people speaking Malay, Mandarin, Tamil, and English, it is difficult to decide what language the characters in a film will speak. Although Mandarin is usually the choice, English is often used in this region to communicate. The problem that producers at Raintree have come across is that the actors often do not speak a convincing, fluent English. The production of films in Singapore with a cast composed of both native English speaking actors and actresses, together with Asian talent, could help solve this problem.

Movies could also be made in Mandarin, which is widely spoken throughout North and Southeast Asia. Singapore just launched Channel U, a new television channel in Mandarin, hoping to attract millions of viewers who speak that language. A substantial amount of young viewers in Singapore are bilingual and want more television shows in English and Mandarin, which means this audience would probably embrace movies in either language. Competition in Singapore is scarce. A small company with adequate funding could be able to make movies that appeal to an extensive market. Why do business in Singapore?

Singapore is an attractive base for an Asian corporate headquarters because people speak English; it is less costly than Tokyo or Taipei and it does not have the political problems of Hong Kong. Singapore offers manufacturing corporations well-trained labor at reasonable wages. For traders it offers a free port. For international financiers the island provides a location, which bridges the time gap between business hours of major world stock exchanges. Finally, the government actively encourages foreign trade and investment..