Explain how a country and its people can respond to the economic challenges of globalisation, such as competition and job change, through skills, support and staying competitive

What this dot point is asking

This dot point asks you to explain how a country and its people can respond to the economic challenges of globalisation. The examiner wants you to show that globalisation brings economic change, such as competition and shifting jobs, and that a country can respond rather than simply accept the costs: by upgrading skills, supporting affected workers, and staying competitive. A strong answer explains each response and makes the key point that responses must help those who lose out, not only chase the gains.

The answer

Upgrading skills and education

A central response is to help workers upgrade their skills. Because globalisation changes which jobs are in demand, workers need to keep learning new skills throughout their lives. The government can provide training, education and lifelong-learning schemes so workers can move into new and better jobs as old ones change. Upgrading skills matters because it keeps workers employable and lets a country compete on quality and ability rather than only on low cost.

Supporting affected workers

Globalisation causes some workers to lose their jobs when work moves to cheaper countries or industries shrink. A good response supports these workers: through retraining for new jobs, help finding work, and financial support during the transition. This matters because it reduces hardship for affected families, eases resentment against globalisation, and stops valuable workers from being left behind. Helping the losers is part of making globalisation work for everyone.

Staying competitive and attracting investment

A country can respond to competition by staying competitive itself: being efficient, stable, well-governed and skilled, so that global companies want to invest and create jobs there. Good infrastructure, a reliable legal system, and a capable workforce attract investment that might otherwise go elsewhere. For a small, open economy, staying competitive is how it keeps the jobs and growth that globalisation can just as easily move away.

Why responses must share the gains

The economic gains from globalisation are uneven, so responses must share them and cushion the losses. If only some people benefit while others suffer, support for openness weakens and society can divide. By upgrading skills, supporting affected workers, and keeping the economy competitive, a country can enjoy the benefits of globalisation while protecting those who would otherwise be left behind. The aim is to make globalisation work for the many, not just the few.

Examples in context

Example 1. Skills and lifelong-learning schemes. Singapore encourages workers to keep learning new skills throughout their careers through national training and lifelong-learning efforts. This helps workers stay employable as globalisation changes which jobs are in demand, a clear example of responding by upgrading skills.

Example 2. Staying attractive to global business. By being stable, efficient and well-governed with good infrastructure, Singapore attracts global companies to invest and create jobs. This shows responding to competition by keeping the economy competitive, and it links to the role of individuals and the government in responding.

Try this

Q1. State two ways a country can respond to the economic challenges of globalisation. [2 marks]

• Cue. Any two of: helping workers upgrade their skills, supporting workers who lose their jobs, staying competitive, and attracting investment.

Q2. Explain how upgrading workers' skills helps a country cope with globalisation. [3 marks]

• Cue. Because globalisation changes which jobs are in demand, training and lifelong learning let workers move into new and better jobs as old ones change, keeping them employable and letting the country compete on ability rather than only on low cost.

Q3. Explain why a country should help workers who lose their jobs to globalisation. [3 marks]

• Cue. These workers lose out through no fault of their own, so support such as retraining and financial help reduces hardship, eases resentment against globalisation, and keeps a capable workforce, sharing the gains and cushioning the losses.