Trade (2010)
Two-way Trade: US$823.9 billion, +23.6% (2010), +11.1% p.a. (1986–2010)
With China:' $402.6 billion, +24.2% (2010), 48.9% share
Exports: $390.4 billion, +22.7% (2010), +10.8% p.a. (1986–2010)
To China:' $205.7 billion, +26.5% (2010), 52.7% share
Re-exports: $381.2 billion, +22.8% (2010), +14.3% p.a. (1986–2010)
To China:' $201.7 billion, +26.7% (2010), 52.9% share
Imports: $433.5 billion, +25.0% (2010), +11.3% p.a. (1986–2010)
From China:' $196.9 billion, +22.4% (2010), 45.4% share
Singapore
Singapore has a highly developed and successful free-market economy. It has an open, pro-business environment, relatively corruption-free and transparent, stable prices, low tax rates (14.2% of GDP) compared to other developed economies, and one of the highest per-capita gross domestic products (GDP) in the world. Its innovative yet steadfast form of economics that combines economic planning of Singapore Economic Development Board with free-market has given it the nickname the Singapore Model. The economy of Singapore is dominated by government-linked corporations that produce as much as 60% of the country's GDP. These government-linked companies are owned by a government holding agency, Temasek Holdings. Notable Government-linked corporations include Singapore Airlines, SingTel, ST Engineering, MediaCorp and Singapore Temasek Holdings.
Exports, particularly in electronics and chemicals, and services including the posture that Singapore is the regional hub for wealth management (and the opening of the city state's first casino in 2010) provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it does not have. Moreover, water is a scarcity in Singapore therefore water is defined as a precious resource in Singapore along with the scarcity of land to be treated with land fill of Pulau Semakau. Singapore has limited arable land that Singapore has to rely on the agrotechnology park [19] for agricultural production and consumption. Human Resource is another vital issue for the health of Singaporean economy.
Singapore could thus be said to rely on an extended concept of intermediary trade to Entrepôt trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port which makes it more competitive than many of its neighbours in carrying out such entrepot activities. The Port of Singapore is the busiest in the world, surpassing Rotterdam and Hong Kong.[21] In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.
Singapore's government promotes high levels of savings and investment through policies such as the Central Provident Fund, which is used to fund its citizen's healthcare and retirement needs. The overall employer and employee CPF contribution rate is about 35.5% which is similar to high tax rates of developed western countries. Most companies in Singapore are registered as private limited-liability companies (commonly known as "private limited companies"). A private limited company in Singapore is a separate legal entity, and shareholders are not liable for the company's debts beyond the amount of share capital they have contributed.
Singaporean exports in 2006
Singapore's total trade in 2000 amounted to S$373 billion, an increase of 21% from 1999. Despite its small size, Singapore is currently the fifteenth-largest trading partner of the United States. In 2000, Singapore's imports totaled $135 billion, and exports totaled $138 billion. Malaysia was Singapore's main import source, as well as its largest export market, absorbing 18% of Singapore's exports, with the United States close behind. Re-exports accounted for 43% of Singapore's total sales to other countries in 2000. Singapore's principal exports are petroleum products, food/beverages, chemicals, textile/garments, electronic components, telecommunication apparatus, and transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, and textile yarns/fabrics.
The Singapore Economic Development Board (EDB) continues to attract investment funds on a large-scale for the country despite the city's relatively high-cost operating environment. The U.S. leads in foreign investment, accounting for 40% of new commitments to the manufacturing sector in 2000. As of 1999, cumulative investment for manufacturing and services by American companies in Singapore reached approximately $20 billion (total assets). The bulk of U.S. investment is in electronics manufacturing, oil refining and storage, and the chemical industry. More than 1,500 U.S. firms operate in Singapore.
Singapore's largely corruption-free government, skilled workforce, and advanced and efficient infrastructure have attracted investments from more than 3,000 multinational corporations (MNCs) from the United States, Japan, and Europe. Foreign firms are found in almost all sectors of the economy. MNCs account for more than two thirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked corporations.
The government also has encouraged firms to invest outside Singapore, with the country's total direct investments abroad reaching $39 billion by the end of 1998. The People's Republic of China was the top destination, accounting for 14% of total overseas investments, followed by Malaysia (10%), Hong Kong (8.9%), Indonesia (8.0%) and U.S. (4.0%). The rapidly growing economy of India, especially the high technology sector, is becoming an expanding source of foreign investment for Singapore. The United States provides no bilateral aid to Singapore, but the U.S. appears keen to improve bilateral trade and signed the U.S.-Singapore Free Trade Agreement. Singapore corporate tax is 17%.
Year |
Total trade |
Imports |
Exports |
% Change |
2000 |
$273 |
$135 |
$138 |
21% |
2001 |
|
|
|
-9.4% |
2002 |
$432 |
|
|
1.5% |
2003 |
$516 |
$237 |
$279 |
9.6% |
2004 |
$629 |
$293 |
$336 |
21.9% |
2005 |
$716 |
$333 |
$383 |
14% |
2006 |
$810 |
$379 |
$431 |
13.2% |
All figures in billions of Singapore dollars.
Taiwan
Taiwan has a developed capitalist economy that ranks as the 19th largest in the world by Purchasing power parity (PPP), ranks as 18th in the world by gross domestic product (GDP) at purchasing power parity per capita (person) and 24th in nominal GDP of investment and foreign trade by the Republic of China (ROC) government, which commonly referred to as Taiwan. In keeping with this trend, most large government-owned banks and industrial firms have been privatized. With the Technocracy-centered economic planning under Martial Lawuntil 1987, real growth in GDP has averaged about 8% during the past three decades. Exports have grown even faster and since World War II, have provided the primary impetus for industrialization. Inflation and unemployment are low; the trade surplus is substantial; and foreign reserves are the world's fourth largest. Agriculture contributes 3% to GDP, down from 35% in 1952, and the service sector makes up 73% of the economy. Traditional labor-intensive industries are steadily being moved off-shore and replaced with more capital- and technology-intensive industries. Economy of Taiwan is an indispensable partner in the Global Value Chains of Electronics Industry. Electronic components and personal computer are two areas of international strength of Taiwan's Information Technology industry. Institute for Information Industry is responsible for the development of IT industry and ICT industry in Taiwan. Directorate-General of Budget, Accounting and Statistics and Ministry of Economic Affairs (Republic of China) release major economic indicators of the economy of Taiwan. Chung-Hua Institution for Economic Research provides economic forecast at the forefront for the economy of Taiwan and authoritatively researches on the bilateral economic relations with ASEAN by The Taiwan ASEAN Studies Center (TASC). Taiwan Stock Exchange is the host to the listed companies of local industries in Taiwan with weighted financial exposures to the FTSE Taiwan Index and MSCI Taiwan Index.
Taiwanese investors and businesses have become major investors in mainland China, Vietnam, Thailand, Indonesia, the Philippines, and Malaysia. The tightening of labor markets has led to an influx of foreign workers, both legal and illegal. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little from the Asian Financial Crisis of 1997-1999 compared to many of its neighbors. Unlike in neighboring Japan and South Korea, small and medium-sized businesses make up a large proportion of businesses in Taiwan. Taiwan is characterized as one of the Newly industrialized economy since 1970's.
Taiwan is a member of the Asian Development Bank (ADB), the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC) forum. Taiwan is also an observer at the Organisation for Economic Co-operation and Development (OECD) under the name Chinese Taipei. Taiwan is a member of International Chamber of Commerce as Chinese Taipei. Taiwan's top five trade partners in 2010 are China, Japan, USA, the European Union, and Hong Kong.
Foreign trade
Computex Taipei, the second-largest technology trade show in the world, is a globalIT exhibition which attracts many foreign investors.
Foreign trade has been the engine of Taiwan's rapid growth during the past 40 years. Taiwan's economy remains export-oriented, thus it depends on an open world trade regime and remains vulnerable to downturns in the world economy. The total value of trade increased over fivefold in the 1960s, nearly tenfold in the 1970s, and doubled again in the 1980s. The 1990s saw a more modest, slightly less than twofold, growth. Export composition changed from predominantly agricultural commodities to industrial goods (now 98%). The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of U.S. investment. Taiwan, as an independent economy, became a member of the World Trade Organization (WTO) as Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (often shortened to "Chinese Taipei"-both names resulting from PRC interference on the WTO) in January 2002. In a 2011 report by Business Environment Risk Intelligence (BERI), Taiwan ranked third-best globally for its investment environment.
Taiwan is the world's largest supplier of contract computer chip manufacturing (foundry services) and is a leading LCD panel manufacturer, DRAM computer memory, networking equipment, and consumer electronics designer and manufacturer. Textiles are another major industrial export sector, though of declining importance as Taiwan due to labor shortages, increasing overhead costs, land prices, and environmental protection. Imports are dominated by raw materials and capital goods, which account for more than 90% of the total. Taiwan imports most of its energy needs. The United States is Taiwan's third largest trading partner, taking 11.4% of Taiwanese exports and supplying 10.0% of its imports. China has recently become Taiwan's largest import and export partner. In 2010, the PRC accounted for 28.0% of Taiwan's exports and 13.2% of imports (excluding Hong Kong). This figure is growing rapidly as both economies become ever more interdependent. Imports from China consist mostly of agricultural and industrial raw materials. Exports to the United States are mainly electronics and consumer goods. As Taiwanese per capita income level has risen, demand for imported, high-quality consumer goods has increased. Taiwan's 2002 trade surplus with the United States was $8.70.
The lack of formal diplomatic relations between the Republic of China (Taiwan) with Taiwan's trading partners appears not to have seriously hindered Taiwan's rapidly expanding commerce. The Republic of China maintains cultural and trade offices in more than 60 countries with which it does not have official relations to represent Taiwanese interest. In addition to the WTO, Taiwan is a member of the Asian Development Bank as "Taipei, China" (a name resulting from PRC influence on the bank) and the Asia-Pacific Economic Cooperation (APEC) forum as "Chinese Taipei" (for the same reason as above). These developments reflect Taiwan's economic importance and its desire to become further integrated into the global economy.
The Economic Cooperation Framework Agreement (ECFA) with the People's Republic of China was signed on June 29, 2010, in Chongqing. It could potentially widen the market for Taiwan's exports. However, the true benefits and impacts brought by ECFA to Taiwan's overall economy are still in dispute. The newly-signed agreement will allow for more than 500 products made in Taiwan to enter China at low or no tariffs. The government is also looking to establish trade agreements with Singapore and the United States.
The list of used basic literature:
Oatley T. International Political Economy / Thomas Oatley. – fifth edition- Boston: Longman, 2012- 416 p.
Pugel T.A. International Economics: / Thomas A. Pugel – fifteenth edition – New York: McGraw-Hill, 2012 – 770 p.
King P. International Economics, Globalization and Policy: a reader / Philip King, Sharmila King - fifth edition - New York: McGraw-Hill, 2009 – 376 p.
Feenstra R.C. (2004), Advanced International Trade. Theory and Evidence, Princeton University Press.
James Rauch (2008). "growth and international trade," The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.
M. June Flanders (2008). "international economics, history of," The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.
Reuven Glick (2008). "macroeconomic effects of international trade" The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.
Smith, Charles (2007). International Trade and Globalisation, 3rd edition. Stocksfield: Anforme. ISBN 1-905504-10-1.
Stanley W. Black (2008). "international monetary institutions," The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.
Paul R. Krugman International Economics: theory and policy: / Paul R. Krugman – seventh edition- Boston: 2006
Cr. W. Kegley American Foreign Policy: pattern and process / Cr. W. Kegley – 2009
Caves R.E. World Trade and Payments: an introduction / Caves R.E. – Boston, 2007