According to the 2014 Index of Economic Freedom, Singapore is the second freest economy in the world. Since then, Singapore has gone on to sign Free Trade Agreements (FTA) with 32 trading partners (Ministry of Foreign Affairs, 2012), which has had a beneficial impact on Singapore’s economy. Having a small domestic market, Singapore has had to maintain an open economy that is highly dependent on external demand. As FTAs encourage trade between countries by eliminating trade barriers, they are crucial to Singapore’s economy. According to the Ministry of Trade and Industry Singapore (2011), in 2010, external demand accounted for nearly three-quarter of Singapore’s total demand, and Singapore’s FTAs have indeed increased its domestic exports.
This impacts components like charges and government spending, which eventually influence the economy. A more prominent level of government burning through frequently invigorates the economy. Financial Economy of Singapore is in light of its part principally and entre pot for neighbor nations. The primary reason of its key geographic area and the passage to the straits of Malacca. The nation did not have minerals and other essential items as oil and gasses to fare however it served a noteworthy financial capacity by transhipping and handling of products adjacent grounds.
Resulting in a financial crisis as the government and banks had failed to constrain the financial system’s creation of private credit and money. The lack of responsibility in the government and banks led to the downturn in the economy now known as the great recession. (document I) Starting in 2007 there was a noticeable increase in mortgage
The fact was that the U.S. economy was heavily dependent on defense orders, and, after the end of the war, their number decreased, which led to a recession in the American military-industrial complex. Inadequate monetary policy conducted by the U.S. Federal Reserve System in the 1930s and an increase of duties on imported goods are often cited as other fundamental causes of the Great
The Singapore government is also trying to foster future growth sectors such as aerospace, precision engineering and especially life sciences. Biotechnology is a growing industry that caters to medical and the need of an aging population. Singapore has a very business-friendly environment that encouraged investment in manufacturing. It's service sector drives Singapore's economy and provides jobs to 80% of 3.03 million workers and employees. commerce and trade, shipping and logistics are essential industries.
The financial crisis and recession in the U.S. spread globally through both financial and trade linkages. When the mortgages backing these securities began to fall in value, the value of the securities themselves began to fall. Investors attempted to liquidate their holdings when they see their assets price falling. Due to the absent of the buyers in the market, these assets became frozen. The interest rate (LIBOR) which they lent money to one another will began to raise by the international banks when the credit became scare and there is a lack of confidence in U.S. Financial
This contributes a lot in carrying out the business operations. Apart from this, the government of Singapore invests a lot in diversifying the economy, and political parties play the most active role in the development of the economy (PESTLE Analysis of Singapore, 2017). So, with the help of this it can be clearly stated that economic factor is quite favourable in case of Singapore airlines where the sound economy system of the nation has acted as the development tool for the business. No such economic fluctuations are present in the nation that adversely affects the performance of the organization, and this is the main reason due to which Singapore airlines are able to earn higher profits and revenue by conducting overall operations in the market. However, some constraints regarding the economic performance of Singapore are present that takes into consideration rise in the labour cost, labour shortage and decline in the level of
The crisis was specifically characterized by accumulating debt levels and extremely high structural deficits of the government. Unfortunately, the Great Recession left a weakened banking sector that has already recorded huge capital losses. The strong relationship between the survival of many Europeans government and their financial stability prompted the government to bail out banks that were badly affected by the Great Recession (Obstfeld et al 2009, 480-486). Thus, the banking sector is obviously in a very weak condition to intervene in the
a) U.S sub-prime financial crisis on Japan Impact on Capital Markets Due to the eruption of the sub-prime financial crisis, Japanese banks were greatly affected by the capital losses from their equity shareholdings in the Capital Markets as stock prices declined sharply. Japanese banks tried reducing the amount of cross-holdings of shares on banks' balance sheets; however, they were still exposed to the volatility caused by equity shareholdings. On December 2008, the Japanese government passed a law which allowed capital injections. On March 2009, three regional banks obtained capital by applying to the authorities. In the summer of 2007, Japanese stock prices had hit a recent peak; however, it began a gradual but substantial decline through the fall of 2008 due
This was prevalent during the Asian financial crisis when economy was adversely affected by the then-weak banking sector. Against the backdrop of the Asian financial crisis, many countries have undertaken the massive reform of their financial sectors. In the case of Malaysia, the governments have