International business Essay Example | Topics and Well Written Essays - 2000 words - 8

International business - Essay Example In this context, the country that consists of one developed city is the new trend in global business and politics. Thus, it is interesting and important to investigate the way Singapore manages to be so prosperous. For this aim, the presented essay overviews Singapore’s open cross-border transaction conditions and explains in detail both the effect of multinational corporations and domestic government on the development of this economy. In the essence of Singapore global business strategy, dependence on trade relations creates the core of its national economy. It is common to deal with this global city as the country that has a strong tradition of protected by government imports in combination with free market economy (Lin and Ewing-Chow, 2014, p. 6). In its essence, Singaporean economy concentrates on â€Å"port, oil processing, multinational corporation manufacturing, some science-based high-tech, a service sector and a growing financial sector† (Preston, 2007, p. 15). In general, Singapore has one of the highest trade to GDP ratio in the world and relies heavily on importing goods like food, energy, and industrial raw materials (Selvam, 2003, p. 69). According to the recent statistics, Singapore is in top-15 of largest merchandise exporter in the world and has a trade to GDP ratio of 404.9 (â€Å"Starting a Trading Company,† 2015). Thus, global business scenario depends on the ability of this count ry to involve foreign investments effectively. In this context, it is evident that Singapore imports all the basic goods. As for the resource base of Singapore, it is similar to Japan in the inability to rely on natural resources. As Dunning (1997) noticed, since nineteenth century, when natural resources were the foundation of development, passed, the key to economic prosperity in the twenty-first century is in ability to create the new knowledge (p. 54). And