INTERNATIONAL TRADE and FOREIGN INVESTMENT

Singapore International Trade and Foreign Investment

Singapore International Trade and Foreign Investment

Introduction

Singapore is a country with huge economic potential and a high level of income per capita. Within this decade from 2000 to 2010 we observe a significant growth in the economy in terms of its foreign trade and investment. Singapore has an edge in this department as compare to other Asian countries due to their strategic geographic location and their approach towards their economy's growth. Singapore is located on the continent Asia is part of the Association Southeast Asian Nations (ASEAN) and is classified by the IMF International as an economy advanced. The surface of Singapore reaches the 680 square kilometers and has a population of 4,351,400 people. In recent years, evolution has been followed holder of great strength and dynamism from an economic point of view. Singapore is a trade-driven economy whereby both foreign trade and investment of this country is at its optimum. Singapore has well developed transport and convenient facilities and is an important link for the world as it links Asia, Europe, Africa, Oceania, the aviation center. Singapore is the second most competitive economy in the world, according to the World Competitiveness Yearbook 2007.

Discussion

International Trade is the exchange of goods and services between countries. This kind of trade leads to the global economy, when prices or demand and supply depend on events occurring in the world. Singapore realizes that international trade allows them to expand markets for goods and services that were not available to them without it and with the help of this it has attained competitive edge over the past ten years (2000-2010). International trade turnover is its gross domestic product of nearly three times, electronics, petrochemicals, finance, shipping; service-based manufacturing and services are the corresponding engines of economic growth. The United States of America, Europe, Japan and china, are highly dependent on Singapore for trading in the market. To stimulate economic development, the new Government "to create a new Singapore", from the traditional economy to a knowledge economy, and climbing strategic planning, it has joined proactively with Japan, the United States and other countries signing bilateral free trade agreements.

The main trading partners of Singapore in terms of its imports in the period of 2000 to 2010 are Malaysia (16.8%), USA (14.1%), Japan, (12.0%), China (8.6%), and Taiwan (5.1%). In relation to their exports include Malaysia (15.8%), USA (14.3%), Hong Kong (10.0%), China (7.0%), and Japan (6.7%). Here, are the most important products in trade commercials made by Singapore. The product with the largest volume of export is Electrical appliances and equipment, and representing 38.05% of the total flow of exports.

Products (main exports in 2000-2010) Participation in exports of Singapore Relative Position world

Electrical appliances and equipment 38.05 7

Machinery and mechanical appliances 22.53 9

Fuels, mineral oil 8.49 22

Organic chemicals 6.63 8

Whole. other products 3.53 11

Optical, measuring, medical 3.01 1

The above mentioned table is a snap-shot picture showing where Singapore in terms of its export ...