“A Critical Analysis of a Multinational Logistics Provider’s Entry into Singapore’s Global and Domestic Hub”
Business and Economics of the Asia Pacific Countries
The Asia Pacific region is known as the most dynamic region in the world accounting for over half the worlds GDP and over 60% of exports. (Chen. M. 2004). Asia's current account surplus is projected to fall by 3% of regional GDP in 2010 and 2011 and from 5% from 2007. Making a modest contribution to the narrowing of global imbalances, while vulnerabilities still remain with global financial conditions, could cause Asia's link with these advanced economies to have repercussions for the region. (IMF. 2010).
As a multinational logistics company based in the USA, whom are looking to expand their business in the Asia Pacific region, need to decide on which Asia Pacific countries best fit a potential gateway. For a freight forwarding company the most important factors that contribute to a gateway are the strategic geographical location, size of the port and airport and how accessible they are, infrastructure, customs, resources, security and technology. (Expeditors. 2010) The country which best suits these indicators is Singapore.
Singapore firstly, is in one of the best strategic locations in the region, situated between Malaysia and Indonesia and south of China makes it a prime location as a gateway connecting the East to the West. Secondly, Singapore has a highly efficient port and airport with the highest in technology and security; as far as ease of doing business is concerned, especially western business’ Singapore is the best in Asia, English being the business language as well. (Communicaid, 2009). (Chen, Min. 2004) states “the Chinese, known for their hardworking ethic, maintain close family ties and through networking dynamics have prospered in the booming economies of Taiwan, Hong Kong, Singapore and other major ASEAN countries”. Chen also states... [continues]
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