Philippines Economy and Exports Overview

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Questions and Answers

Which sector is a significant contributor to the Philippines' export economy?

Textiles and Fabrics

Tourism Services

Agriculture and Livestock

Electrical Machinery and Equipment (correct)

What is a potential outcome if the Philippines fails to maintain a trade surplus?

Increased foreign investments

Economic stabilization

Trade deficit (correct)

Improved livestock production

Which of the following is NOT listed as a top commodity export from the Philippines?

Motor Vehicles and Vehicle Components

Copper Metal

Natural Gas (correct)

Plastic Materials and Plastic Articles

What indicates the Philippines is considered an emerging nation?

Rapid growth in trade Signup and view all the answers

Which stakeholder groups can influence the international business environment in the Philippines?

Industry associations and trade groups Signup and view all the answers

Which of the following reflects a common misconception about economic improvement in the Philippines?

Economic growth is felt by all citizens Signup and view all the answers

Why is technological advancement emphasized for the Philippines in relation to the international market?

To meet increasing demands Signup and view all the answers

What type of equipment is highlighted as significant in the context of the Philippines' exports?

Medical Equipment Components Signup and view all the answers

What does globalization primarily describe?

The increasing interconnectedness of trade and technology Signup and view all the answers

How does culture influence an organization?

It influences beliefs, values, and practices in strategic directions Signup and view all the answers

What significant action did President Ferdinand Marcos Jr. take regarding offshore gaming operators in July 2024?

Implemented a ban on all Philippine offshore gaming operators Signup and view all the answers

Which of the following is NOT a characteristic of culture?

Static Signup and view all the answers

What is the main purpose of acculturation?

To adopt practices of another culture while retaining one's own Signup and view all the answers

Who developed the country similarity theory and in what year?

Steffan Linder, 1961 Signup and view all the answers

How is enculturation primarily different from acculturation?

Enculturation is a subconscious process, while acculturation is conscious Signup and view all the answers

According to the product life cycle theory, which stage follows the 'new product' stage?

Maturing product Signup and view all the answers

What assumption is made about the production location of new products in the product life cycle theory?

Produced in the home country of its innovation Signup and view all the answers

Which process involves adopting elements of a majority culture?

Acculturation Signup and view all the answers

Which approach to ethical decision-making focuses on the action that respects the rights of everyone?

Right-based approach Signup and view all the answers

What was a notable outcome of the ban on Philippine offshore gaming operators announced in July 2024?

Impact on local employment Signup and view all the answers

In what way is culture described as dynamic?

It adapts and evolves with societal changes Signup and view all the answers

What was a key feature of Linder’s country similarity theory?

Preference similarities among consumers in developed countries Signup and view all the answers

Which ethical approach considers actions that benefit the most number of people?

Utilitarian approach Signup and view all the answers

What was a common feature of the Philippines gaming market before the ban in July 2024?

Division of opinion regarding offshore gaming operators Signup and view all the answers

What is the process through which individuals learn and adopt the cultural norms of their society?

Enculturation Signup and view all the answers

What is the role of social organizations in culture?

They facilitate cultural learning and sharing Signup and view all the answers

What concept refers to ownership stakes made by investors in foreign companies?

Foreign Direct Investment Signup and view all the answers

When evaluating ethical decision-making, what should be the first step?

Listen to your instincts Signup and view all the answers

Which of the following best describes the Leontief Paradox?

A situation that contradicted traditional trade theory Signup and view all the answers

What argument is made against treating ethics as aligned solely with culturally accepted norms?

Ethics should be universally applicable to all cases. Signup and view all the answers

What is a characteristic of a common market?

Goods, services, and factors of production flow freely among members Signup and view all the answers

Which approach evaluates actions based on their fairness and justice to individuals involved?

Fairness/justice approach Signup and view all the answers

Which statement best describes an economic union?

It integrates economies and policies among member countries Signup and view all the answers

Which of the following is NOT a type of regional economic integration?

Monetary union Signup and view all the answers

Which regional economic integration type allows member countries to independently determine trade policies with nonmember nations?

Free trade area Signup and view all the answers

What distinguishes a customs union from a free trade area?

Members agree on trade policies with nonmembers Signup and view all the answers

What is a key characteristic of classical country-based theories in international trade?

Emphasis on resource allocation among countries Signup and view all the answers

Which agreement relates to trade-related aspects of intellectual property rights?

TRIPS Signup and view all the answers

What is the primary function of the World Trade Organization (WTO)?

Promote free and fair trade between nations Signup and view all the answers

What is the goal of the WTO agreements?

To enable producers, exporters, and importers to conduct business Signup and view all the answers

Study Notes

Stakeholder Groups

Industry associations, trade groups, suppliers, and labor

Forms of International Business

Key Highlights of the Philippines Economy

Data from Trade Imex Info Solution Pvt Ltd, published February 27, 2023
Reports on current trends in the Philippine economy
Data from the Observatory of Economic Complexity, published May 20, 2024
Data from Aboitiz Intra Capital published December 15, 2022

Top Commodity Exports from the Philippines

Electrical Machinery and Equipment
Computers and Computer Parts
Copper Metal
Fruits, Nuts, and Other Industrial Crops
Gemstones and Precious Metals
Components Used in Medical Equipment
Motor Vehicles and Vehicle Components
Mineral Ore, Slag, and Ash
Animal and Vegetable Fat, Oil, and Wax
Plastic Materials and Plastic Articles
The Philippines is an emerging nation with a rapid growth in trade, infrastructure, and healthcare facilities.

Generalization

The Philippines is an emerging nation with rapid growth in its trade, infrastructure, and healthcare facilities.
The country should maintain a trade surplus to prevent a deficit.

Theories in International Trade

International Trade Theory
Political and Legal Factors that impact international trade
Foreign Direct Investment
Country Similarity Theory (Steffan Linder, 1961): Explains intra-industry trade.
Consumers in countries at similar development stages have similar preferences.
Companies first produce for domestic consumption.
Leontief Paradox
Product Life Cycle Theory (Raymond Vernon, 1960s): A product life cycle has three distinct stages:
- New product
- Maturing product
- Standardized product
The US was a dominant producer in many industries after World War II.

Globalization in the Contemporary World

Trade and technology have made the world a more connected and interdependent place.
Economic and social changes have occurred as a result.
People, money, materials, ideas, and illnesses have traveled globally at a faster rate than ever.

Culture and Ethics

Business culture influences company functions, strategic directions, and employee interactions.
It involves common beliefs, values, and attitudes.
Culture is a factor in business and impacts strategic directions.

Characteristics of Culture

Culture is an integrated system of learned behavior patterns.
It is learned, shared, and transmitted through generations.
Culture can be passed down by parents, social organizations, special interest groups, the government, schools, and churches.
It is multidimensional and consists of independent elements.
It is learned, shared, symbolic, integrated, adaptive, and dynamic.

Acculturation and Enculturation

Acculturation is adopting practices and values of a different culture while retaining one's culture of origin.
It is a two-way process.
Enculturation is the lifelong process of learning one's native culture.
It begins at birth and is primarily subconscious.

Ethics in Globalization

Ethics is a branch of philosophy that seeks virtue.
It deals with what is considered "right" and "wrong" behavior.
Business ethics emerged in the 1970s and international business ethics emerged in the late 1990s.

Is It Ethical?

Listen to your instincts
Get the facts
Evaluate alternative actions:
- Utilitarian approach - Most good and least harm
- Right-based approach- Action that respects the rights of everyone
- Fairness/ justice approach - Action that treats people fairly
- Common good approach - Action that contributes to the quality of life

When is Globalization Ethical and Not Ethical?

Globalization is an important subject for medicine, science, law, and business.
International business ethics can have a strong foundation in national culture.
Some argue that ethics shouldn't follow cultural norms.

Foreign Direct Investment (FDI)

An ownership stake in a foreign company or project made by an investor, company, or government from another country.
It involves a business decision to acquire a substantial stake in a foreign business or buy it outright to expand operations.

World Trade Organization (WTO)

The WTO is the only global organization that deals with the rules of trade between nations.
It aims to promote free and fair trade.
The WTO agreements have been negotiated and signed by most trading nations.

Regional Economic Integration

Regional economic integration allows countries to focus on relevant development issues and encourages trade between neighbors.
There are four main types:
- Free trade area
- Customs union
- Common market
- Economic union

Free Trade Area

The most basic form of economic cooperation.
Member countries remove all barriers to trade between themselves but are free to independently determine trade polices with non-member nations.
Example: NAFTA (Canada, USA, Mexico)

Customs Union

Provides economic cooperation like a free trade area, but members also agree to treat trade with non-member nations in a similar manner.
Example: GCC (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates)

Common Market

Creates economically integrate markets between member countries.
Trade barriers are removed, as are any restrictions on the movement of labor and capital between members.
Example: COMESA (21 member states in Africa from Tunisia to Eswatini)

Economic Union

Countries enter into an economic agreement to remove trade barriers and adopt a single, common currency.
Example: European Union

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Description

Explore the dynamics of the Philippine economy, including key stakeholder groups and top commodity exports. This quiz delves into recent data and trends that highlight the country's growth in trade and various sectors. Perfect for students and professionals interested in international business and economic development.