Importance of global trade in Singapore Essay Example | Topics and Well Written Essays - 500 words

Importance of global trade in Singapore - Essay Example Therefore, the key term will determine what affects Singapore in the global trade and what makes it sustain the world economic dynamics in trade. Global trade refers to the exchange of goods and services between different countries in the world. Therefore, this research will bring out the importance of exchanges of service and goods in Singapore. Singapore has a big role in the global trade. This is concerning its position in the world trade. The country has a good infrastructure in place, and most of its population is educated (Eiras et al., 2011). The country has a number of European companies built there and is among the leading external investor in the world. The country also has a good relationship with many countries. After understanding of the concepts, one develops an interest to research about the effect that Singapore has on the global trade. A discussion of the importance of global trade in Singapore has been explored using SWOT analysis. This will bring more insight of where Singapore is placed at the moment and its effect in the global trade Strengths: Singapore is ranked among the largest exporter of goods and services in the world. With this position, it plays a crucial role in global trade. As a country it gains, more advantage because of its position in the global trade. The country has achieved this through embracing of trade dependence and encouraging globalization. The country also has assured economic security, and this is through the General Agreement on Tariffs and Trade GATT that it acceded in 1973 (Eiras et al., 2011). These forms a system that has rules captured in World Trade Organization that see the country have economic dependence. The country also enjoys the foreign direct investment. It has over 10,000 companies from the European Union operating across a wide range of sectors. This makes Singapore the fifth largest external investor in the world by 2012 (Country Highlights of The