The global business environment and the influence of key global drivers on Singapore

Globalisation is method that has caused different economies and cultures to be more inter-connected through global network trades, capital flow and technology. Globalisation enables businesses in different countries to generate goods and services allowing them to develop a comparative advantage. This allows them to reduce the prices for the consumers causing a growth in incomes resulting in a gain in economic welfare. (tutor2u, 2019)

The global business environment is the environment in diverse independent countries that affects the home of the business and influence any decisions made on resources. This can be divided into two different environments, external and internal. Businesses that operate globally have to be aware of the social environment of other countries they operate in, this can be done through learning the language and the culture of the country.  (icmrindia, 2019)

Globalisations has resulted in the coming together of more advanced economies and this has resulted in an argument that the growth of the wellbeing gap between the more advanced and less advanced economies. Global economy focuses on the effect trade has and the expenses and advantages of free trade, it focuses on difficulties in the global economy, financial crisis, and the increase of trading blocs.  (economicsonline, 2019)
From 1995, Singapore has been part of the World Trade Organization and has upheld low trading barriers. There are many benefits for businesses trading in Singapore such as low taxes, corruption free system, low barriers to trade, world class infrastructure and many more.  (grantthornton, 2019)

The incorporation of nationwide economies into a worldwide economic system is the most significant growth and development of the last century. Globalization has resulted in an extraordinary growth and development in trading between different countries. The graph below shows the value of global exports from 1800 to 2014, as it can be identified from the graph we have a lot more trade today than what was a century ago. (ourworldindata, 2019)

  (ourworldindata, 2019)

PESTLE Analysis
Political/Legal	According to the PERC, Singapore is identified as having the lowest political risk in their region. Singapore is recognised as an independent, self-governing country, this means that the people designate their own government which has resulted in political strength. Due to their independence, there has been a development in business prospects. Although their political risk is low, it is known that free speech is restricted for other parties. (pestleanalysis, 2019) Singapore has a corruption-free legal system in place that is aimed at making sure that rights and contracts are respected and any differences can be resolved efficiently.  (Startupdecisions, 2019)
Economic	Singapore is seen as a free market economy that is quickly evolving. Their per-capita revenue is the highest, the legal and fiscal business background plays an important role in this. The Singapore government participated in expanding and diversifying their economy which therefore lead to a higher success in tourism. Singapore saves a lot on expenses due to cheaper labor costs from other countries, so therefore a factor that negatively impact Singapore’s economy is an increase in labor costs. (pestleanalysis, 2019)
Social	In majority of the areas in Singapore, women are given the same rights as men, this includes employment and education. (nationsencyclopedia, 2019) Singapore’s population in 2019 was recorded as 5.68 million people. The general marriage (GMR) for women fell more than men since 1980, for women it declined from 67 to 41 per 1,000 unmarried female’s age ranging from 15-49 from 1980 to 2018 whereas for men it fell from 55 to 43 per unmarried males aged 15-49 in the same period of time. The divorce rates have remained around 6 to 7 per 1,000 married people aged 20+ for men and women since 2004 after it increased from 4 in 1980. (singstat, 2019) in 2017 Singapore had the highest life expectancy of 84.8 years. (straitstime, 2019)
Technological	Singapore’s technical development plays a major role in the improvement to the way of life. The introduction of the internet made communication easier, improved social interaction and even resulted in reduced costs and time of managing business. Singapore’s IT arrangement has resulted in the infiltration amount for household internet to be over seventy per cent which has led to the success of the e-commerce. The country also has over 10Mbps of internet available which has motivated multinational businesses to arrange local operations in Singapore. (pestleanalysis, 2019)
Environmental	Environmental factors affecting Singapore are pollution, limited freshwater resources, and forest fires from Indonesia causing smoke and fog. In Singapore there is also limited land available so therefore this results in waste removal issues. Another major issue for Singapore is the increasing sea levels, the reason that they are at risk is because majority of their infrastructures are not even two meters over sea level. (factsanddetails, 2019)

Opportunities
An opportunity for Singapore is to resolve their issues with Malaysia and Indonesia regarding land which therefore may result in them being able to increase the land available to them.  Another major opportunity for Singapore is the emerging markets and the growth and development in other countries, this gives them the opportunity to enter new business areas and markets and with more business changes they are able to expand globally making and increase their ecommerce. (mindomo, 2019) A major opportunity available for Singapore is the rising customer base and the better quality of life of the consumers which results in a higher demand for high end products especially regarding technology. Singapore can use this information to make changes and evolve to meet the needs of the consumers.

Threats
A threat Singapore face is Terrorism as many countries do but with their security they have managed to escape attacks in the past. The Ministry of Home Affairs (MHA) observe and inspect the people coming into the country for the purpose to identify a potential risk regarding terrorism if it is there. Singaporean people do not see terrorism as a major threat but the MHA would rather avoid devastation in the country. (pestleanalysis, 2019) Singapore is considered vulnerable to cyber-attacks as in the past they have suffered cybersecurity breaches. Singapore is the main technological hub of Southeast Asia so therefore due to this high level of technology they have various different cyber defences systems in place but without enough ‘peopleware’, the software and hardware in place is not enough. (kr-asia, 2019)

A global driver drives globalisation up or else restrict it. Below is a table that identifies and explains what the key global drivers are and relates them to Singapore.

Key global drivers
Cost	Singapore is identified as one of the most progressive economies in the world, the country managed to make its way through the economic disaster back in 1997 and again in 2008. Their economy currently has no foreign debts and a high government income which is the reason they are recognised as an advanced economy. The economy of Singapore is supported by the trades in manufacturing, technology, financial facilities and tourism. Their main trade is the manufacturing sector which funds roughly 25% of Singapore’s yearly GDP. Singapore was classified as the second most open economy and most pro-business government globally. In 2017 Singapore’s GDP stood at S$107 billion. (guidemesingapore, 2019)
Technology	With advancements in technology in Singapore it makes it easier to transport goods and provide a service all over the world and gives them remote access. Singapore plays a major role in innovation and research and development in the most active economic area. Some government agencies are continuously helping business in Singapore, they do this through providing them with the resources they need to meet their business goals and objectives. Singapore is actively producing an environment that aims to invite inventive global start-ups, an example of this is Taiger, who moved its holding company and main operations to the shores of Singapore to be able to us its innovation ecosystem to its benefit. (forbes, 2019)
Market	Singapore market is becoming more accessible and bigger markets are available, but this means more competition. The growth of ride-sharing amenities is due to the wants and demands of the consumers and as a result of this there is greater employment for drivers and advanced commuting opportunities. A major impact on the rise of the ride-sharing market is the customer loyalty schemes and advertising campaigns. (gomedici, 2019)
Government	Singapore has several government regulations in place, and this is an important factor as to why they are recognised as an independent, self-governing country. There are laws in place to instruct that contributors in the market do not occupy anti-competitive actions that could potentially offend or damage other companies or the consumers. Singapore follow the Personal Data Protection Act, Singapore oblige their business to receive permission from customers or employees before they can use their personal details for any purpose.  (startupdecisions, 2019)