What this lesson teaches
I can explain what globalisation is and how it links countries and people and makes them depend on each other.
Syllabus K336, Issue 3, Key Understandings. Globalisation shapes the interconnections and interdependence among countries and people.
Make a guess
Singapore buys a small amount of rice from Country A, and Country A sells a little to Singapore. Do you think they depend on each other equally?
- Yes, because a trade link means each side relies on the other the same amount.
- No, because buying a small amount of rice creates no dependence.
- Not necessarily: reliance depends on alternatives on each side.
Show the answer
Not necessarily: reliance depends on alternatives on each side.
A link is not the same as equal reliance. The side with fewer alternatives depends more on the other.
Being connected means having links. Being interdependent means relying on each other, and that reliance is often unequal.
Picture a bag maker that orders custom zips from an overseas supplier. They are connected by orders, payments and deliveries. If each relies on the other for regular supplies or sales, they are also interdependent. Sales revenue is money received from sales before costs are taken off. It is not the same as profit.
Interconnectedness means links between people, businesses or countries. Interdependence goes further: each relies on the other for something, such as materials, services, knowledge, money or customers. A contact list or one message shows a link, not reliance.
Interdependence is often unequal. One business may have many alternatives, while its partner depends heavily on the relationship. To explain interdependence, say what each side needs and how easily it could find a replacement.
- Interconnectedness
- Having links with others.
- Interdependence
- Relying on each other for something.
- Unequal dependence
- One side may rely on the other more.
Real examples to use
Trade over three times GDP
Singapore's total trade is worth more than three times its GDP, one of the highest ratios in the world. Its economy depends heavily on what happens in other countries.
COVID-19 and supply chains
In 2020, factory shutdowns and border closures abroad delayed goods such as masks and electronics parts to many countries, including Singapore.
Worked example: Zips and repeat orders
A Singapore bag maker buys custom zips from a Thai supplier. Half the supplier's sales come from these orders. The bag maker has another supplier it could use; the Thai supplier would need months to find a new buyer.
- The two businesses are interdependent: each relies on the other.
- The Thai supplier depends on the relationship much more.
- So interdependence here is unequal.
Watch out for this
Any link between two countries means they depend equally on each other.
A link is not the same as reliance. First check that one side actually needs the other, then look at each side separately: one may have more alternatives, so reliance is often unequal.
Check your understanding
In the zip example, which business depends more on the relationship?
- The Thai supplier, because half of its sales come from these orders.
- The bag maker, because it buys the zips it needs.
- Both depend on each other equally, since both gain from each order.
Show the answer
The Thai supplier, because half of its sales come from these orders.
Right. It would struggle more to replace the relationship.
Check your understanding
Singapore imports over 90% of its food. What does this show?
- Singapore is food secure, because it can afford to buy from many countries.
- Other countries depend on Singapore, since it is one of their biggest buyers.
- Singapore relies on others, so problems abroad can affect its food supply.
Show the answer
Singapore relies on others, so problems abroad can affect its food supply.
This is dependence created by global connections.