Foreign Economic Policies in the Philippines
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Questions and Answers

Who is the 'overseas power' that the candlemakers are competing with?

  • China
  • The Sun (correct)
  • The Philippines
  • The United States

    • Which economic policy is Frédéric Bastiat satirizing in the Candlemakers’ Petition?

  • Free Trade
  • Communism
  • Protectionism (correct)
  • Mercantilism

    • What is the main argument made by the candlemakers in the Candlemakers’ Petition?

  • Free trade will lead to cheaper prices for consumers.
  • Candlemakers should be allowed to import candles from other countries.
  • Protectionism will help domestic industries grow. (correct)
  • The government should regulate the price of candles.

    • What does the text use as an example to illustrate the effects of free trade?

    <p>The domestic market for clothing in the Philippines (A)</p> Signup and view all the answers

    What is the effect of no-trade on the price of clothing in the Philippines?

    <p>Prices will be higher than in the global market. (C)</p> Signup and view all the answers

    What is the world price of clothes in the Philippines, according to the text?

    <p>₱100 per unit (D)</p> Signup and view all the answers

    What is the main reason why the Philippines cannot affect the world prices of clothes?

    <p>The Philippine clothing market is relatively small compared to the global market. (A)</p> Signup and view all the answers

    What is the equilibrium price of clothing in the Philippines if there is no trade?

    <p>₱200 per unit (B)</p> Signup and view all the answers

    What criteria signifies a well-developed context in an essay?

    <p>Context is well-developed with accurate and relevant ideas. (D)</p> Signup and view all the answers

    Which point relates to the organization of ideas within an essay?

    <p>There is evidence of coherent transitions between ideas. (C)</p> Signup and view all the answers

    What is an indication of poor syntax in an essay?

    <p>Failure to capitalize letters and misuse of punctuation. (B)</p> Signup and view all the answers

    How can content be rated as satisfactory?

    <p>There is some evidence of context but requires more details. (B)</p> Signup and view all the answers

    Which element is crucial for maintaining the essence of an essay amidst minor distractions?

    <p>Minimal distractions in regard to syntax. (D)</p> Signup and view all the answers

    What is a consequence of having irrelevant inclusions in an essay?

    <p>Distractions that may hinder understanding. (A)</p> Signup and view all the answers

    What signifies excellent syntax in an essay?

    <p>Effective use of words, punctuation, and capitalization. (D)</p> Signup and view all the answers

    What is a potential drawback of free trade policies?

    <p>Issues of unfair competition for local producers (B)</p> Signup and view all the answers

    What is one method governments may use to protect local businesses from competition?

    <p>Imposing protectionist policies in the form of tariffs (D)</p> Signup and view all the answers

    How do governments typically impose tariffs on imported goods?

    <p>In ad valorem form based on the value of the goods (C)</p> Signup and view all the answers

    What is a likely consequence of imposing quotas alongside tariffs?

    <p>Limitation on the quantity of imported goods (D)</p> Signup and view all the answers

    What can be a benefit of trade for countries, despite protectionist measures?

    <p>Lower prices for consumers (D)</p> Signup and view all the answers

    What does government intervention through tariffs aim to achieve?

    <p>Support local producers against international competition (D)</p> Signup and view all the answers

    Which of the following describes a tariff?

    <p>A tax imposed on goods at the point of import (C)</p> Signup and view all the answers

    What aspect of free trade might lead to opposition from domestic suppliers?

    <p>The rise of multinational corporations (A)</p> Signup and view all the answers

    What is the primary purpose of imposing tariffs on imported goods?

    <p>To increase local production and reduce imported goods consumption (A)</p> Signup and view all the answers

    What are quotas primarily aimed at achieving regarding imported goods?

    <p>Limiting the quantity of imports (D)</p> Signup and view all the answers

    What is a significant impact of the Rice Tariffication Law on the price of rice?

    <p>It is expected to theoretically decrease the price due to increased supply (A)</p> Signup and view all the answers

    What percentage of ownership can foreign investors have in select businesses in the Philippines according to the 60-40 equity rule?

    <p>40% (B)</p> Signup and view all the answers

    What is one of the main uses of the funds collected from rice import tariffs?

    <p>To enhance local rice competitiveness through innovation (B)</p> Signup and view all the answers

    What distinguishes prohibitive quotas from other types of quotas?

    <p>They aim to stop all imports completely (D)</p> Signup and view all the answers

    How does the government benefit from the Rice Tariffication Law regarding tariff excess?

    <p>By using excess tariffs to support local farmers (D)</p> Signup and view all the answers

    What is the effect of a lower tariff on the importation of goods?

    <p>It lessens imports but does not eliminate them (C)</p> Signup and view all the answers

    What must the price of clothes in the Philippine market equal when opened to international trade?

    <p>₱100.00 per unit (B)</p> Signup and view all the answers

    What does the horizontal line at ₱100.00 represent in the context of international trade?

    <p>Supply curve for imports (A)</p> Signup and view all the answers

    Which of the following best describes protectionism?

    <p>Protecting local industries from foreign competition (C)</p> Signup and view all the answers

    What will happen to the domestic price of clothes in the Philippines when international trade opens?

    <p>It will decrease to match the world price (A)</p> Signup and view all the answers

    What distinguishes a prohibitive tariff from a nonprohibitive tariff?

    <p>Prohibitive tariffs are set very high to discourage imports (B)</p> Signup and view all the answers

    How does the quantity of clothes supplied domestically change at the world price of ₱100.00?

    <p>It remains unchanged at 100 units (C)</p> Signup and view all the answers

    What governs the direction of trade when the equilibrium price is higher in the no-trade situation compared to the world price?

    <p>Goods will flow into the country (A)</p> Signup and view all the answers

    What is the main effect of imported clothes flowing into the Philippine market?

    <p>Decreasing the price to align with imports (A)</p> Signup and view all the answers

    What is the main economic issue that Frédéric Bastiat is satirizing in "The Candlemakers’ Petition"?

    <p>The dangers of government intervention in free markets (C)</p> Signup and view all the answers

    In the satire, who represents the "rival" that the candlemakers are complaining about?

    <p>The natural element of sunlight (B)</p> Signup and view all the answers

    What is the candlemakers' proposed solution to the issue they are facing?

    <p>Asking the government to close off all sources of natural light (D)</p> Signup and view all the answers

    What is the main point Bastiat is trying to make through this satire?

    <p>Free markets are more efficient and beneficial than government-controlled ones. (A)</p> Signup and view all the answers

    Which of the following is NOT a reason why the candlemakers' petition is considered satire?

    <p>The petition is a genuine plea for government protection. (A)</p> Signup and view all the answers

    What is the significance of the candlemakers' petition in the context of economic policy?

    <p>It provides a historical example of the unintended consequences of government regulations. (B)</p> Signup and view all the answers

    Which of the following is a key takeaway from Bastiat's "The Candlemakers’ Petition"?

    <p>Protectionism can have unforeseen negative consequences on the overall economy. (D)</p> Signup and view all the answers

    Which of these statements best describes the relationship between the candlemakers and the sun in Bastiat's satire?

    <p>The candlemakers are rivals competing for the same market share. (B)</p> Signup and view all the answers

    Study Notes

    Foreign Economic Policies

    • Students will be able to explain foreign economic policies and apply macroeconomic policies in the Philippines.
    • The module examines specific foreign economic policies using a satirical example from Frédéric Bastiat (1845).
    • The example, the "Candlemakers' Petition," criticizes protectionist policies.

    The Candlemakers' Petition

    • The satirical petition by French candlemakers argues for a law to close all windows and other openings to block sunlight.
    • The rival is the sun.
    • The petition highlights the absurdity of protectionist policies that aim to protect domestic industries by preventing competition from foreign rivals.

    Free Trade and No-Trade

    • The Philippine clothing market is analyzed hypothetically to illustrate free trade.
    • The world clothing price is set at $100.
    • Without trade, the domestic price is relatively higher ($200).

    Protectionism and Barriers

    • Protectionism is any policy of the state to protects domestic industries from international competition.
    • Tariffs are taxes on imported goods, aiming to reduce imports.
    • Prohibitive tariffs aim to eliminate imports.
    • Non-prohibitive tariffs aim to curtail imports without eliminating them.
    • Quotas limit the quantity of imported goods.

    Rice Tariffication Law

    • The Rice Tariffication Law (RA 11203) liberalizes rice imports, lowering domestic prices.
    • The law establishes tariffs on rice imports from ASEAN and non-ASEAN countries.
    • The collected tariffs make up a Rice Competitiveness Enhancement Fund (RCEF) for irrigation, storage, and research.
    • Some benefits are lower rice prices, increased supply, and financial assistance for farmers.

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    SLG-SocSci5-4.1-Foreign-Economic-Policies PDF

    Description

    This quiz explores foreign economic policies and their application in the Philippines, utilizing Frédéric Bastiat's satirical 'Candlemakers' Petition' to illustrate the absurdity of protectionism. Students will analyze the implications of trade policies and their effects on domestic industries, using real-world examples like the Philippine clothing market.

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