Globalization involves the removal of trade barriers and increasing integration between economies. Singapore has taken advantage of the opportunities presented by globalization by increasing global trade, strengthening economic integration, reducing costs and increasing productivity. Singapore is a newly industrialized economy and one of the five founding members of ASEAN. Singapore, like many nations, imports goods that include machinery and equipment, mineral fuels and chemicals, and exports goods such as machinery and equipment, pharmaceuticals and refined petroleum products to its various trading partners such as Malaysia, Hong Kong, China and Indonesia, making it the 14th largest exporter and the 15th largest importer. Figures 1-4 show imports and exports by commodity. Singapore has a GDP of $274.7 billion and a growth rate of 1.8%. Its current unemployment rate is 1.8% and inflation rate is 4.5%. Globalization has increased international convergence in Singapore as its economy integrates into the global realm and begins to move in sync with another economy. For example, if one economy is experiencing a resurgence in economic growth, this could influence other economies to experience a similar outcome. Singapore demonstrates international convergence by adopting certain reporting methods to attract investors from well-positioned companies, increasing levels of trade and foreign direct investment (FDI) between different economies. Foreign direct investment involves direct investment in foreign assets/enterprises in which they own a significant part of the business. Figures 5 and 6 illustrate Singapore's foreign direct investment outside its economy, as well as foreign direct investment from other countries in Singapore, which depicts the mutual benefit experienced by Singapore and the country......as of mid- document...... adopted a policy aimed at managing the exchange rate and ensuring low inflation as a basis for sustainable economic growth. Because policy is primarily focused on managing the exchange rate, rather than interest rates or the money supply, the exchange rate is the most effective tool for maintaining price stability and plays an important role in reducing the inflation since it consists of both expansionary monetary policy measures as well as contractionary monetary policy that are used to manage the level of inflation so that it meets the needs of the population in purchasing goods and services, as well as ensuring that businesses make a profit . Globalization has a dominant power over all countries in the global realm. Singapore has capitalized on the opportunities afforded by globalization to improve its economy, making it the second pre-eminent economy in the world.