Lori Angell
Abstract: This article begins by discussing the history of Singapore in order to analyze the effects that multinational corporations (MNCs) and Singapore had on each other. Singapore’s trading history began in 1819 when the British East India Company established it as a trading settlement from which the British could extend their political and economic influence into East Asia. This historical positioning of Singapore as a place of trade, as well as a strong economy and intelligent work force, served as incentives for MNCs to invest and even base themselves in the internationalized country. Singapore encouraged MNC development with hopes that investments from developed countries would introduce modern technology and the quality of life that inherently follows from technological advancement. MNCs flocked to Singapore because telecommunications allowed them to hold coordinated offices across the globe. Companies were also better able to manage the Asian market from within; they had better market access and did not have to contend with import regulations. Despite the relationship appearing mutually satisfactory on the surface, Singapore experiences negative effects of MNC dominance, including MNC control of technology and MNC constraint on growth and development. Although the relationship between Singapore and MNCs is uneven, one can conclude that entities enter into, and remain in, relationships in order to gain political and economic advantages.
Keywords: Singapore, multinational corporations, trade, investment, growth, development, technology, relationship, market, economy
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