GE 102 NOTES.pdf

1 BACKWARD (UPSTREAM) VERTICAL INTEGRATION  form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain  Focuses on own production  Ensuring supply for business...

1 BACKWARD (UPSTREAM) VERTICAL INTEGRATION  form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain  Focuses on own production  Ensuring supply for business Example: Jollibee, San Miguel Corporation Advantages Disadvantages  Cost Reduction  High Capital Investment  Improved Supply Chain Control  Reduced Flexibility  Increase Profit Margins  Operational Inefficiencies  Enhance Competitive Advantages  Increased Complexity and Management Challenges  Risk of Over-Capacity and Under- Utilization FORWARD VERTICAL INTEGRATION  Business strategy where a company expands its operations into areas that are closer to the end consumer  Gain more control over the distribution process, reduce costs, and increase market share.  Acquiring or merging with companies that are further along the supply chain, such as distributors or retailers EXAMPLES: FORD, AMAZON Advantages Disadvantages  Enhanced Efficiency  It may cause complacency in some  Risk management companies.  Better customer service  The increase of overheads and  Developing new core costs. competencies  Many companies can tread outside  Competitive advantage their core competencies.  Better cost control HORIZONTAL INTEGRATION  Acquiring other companies that reside along a similar area of the supply chain.  Horizontal integration help companies grow in size and revenue, expand into new markets, diversity product offerings, and reduce competition. Example: Facebook & Instagram, Disney & Pixar GLABEN  2 Advantages Disadvantages  May result in efficiencies and  May reduce value or synergy if merger economies of scale is not performed successfully  May reduce company risk through  May result in a clash of management product and market diversification styles with multiple leadership teams  May increase profitability through coming together new cross-selling opportunities  May result in regulatory issues if a dominant market share is formed CONGLOMERATE  Large corporation that consist of a collection of different companies, often operating in various industries  These companies are typically not related, but owned and managed by a single corporate structure  To diversify operations to reduce risk, to prevent losses in other sector if one company suffers a loss. Example: SM Investment Corporation, San Miguel Corporation, Samsung Group Advantages Disadvantages  Risk reduction through  Management Complexity Diversification  Lack of Focus  Financial Stability  Financial Risks (all business has  increased Market Power financial risks) IMPORTING AND EXPORTING IN GLOBAL MARKET Importing  Transfer of goods and services from one country or region to another in exchange for money or other goods and services. The buyer of such goods and services is referred to an "Importer". Advantages Disadvantages  Access wider range of goods  Importation of items from other  Cost reduction countries can increase the risk of  Introduction of new technologies getting them which is no more common  Reduce dependence on existing in the warm weather. markets.  It leads to excessive competition.  It also increase risk of other diseases from which the country is exporting the goods. Exporting  Producing a product or good in one country and selling it to another  Exporting forms an integral part of international trade. Exports help countries expand their market globally. This way, customers also have access to products from around the world. GLABEN  3 Advantages Disadvantages  Exporting is one way of increasing  Extra costs your sales potential  Domestic Competitions  Reducing risk and balancing Regulations growth Country’s reputation on  Gain knowledge & Experience stake  Increasing sales & profit FIRST SUGAR IMPORTATION FIASCO Sugar Importation – countries buy sugar from foreign suppliers to fulfill domestic needs Fiasco - Complete Failure (Kapalpakan) 1. Background: Sugar Shortage in the Domestic Market.  Cause of Shortage: Poor harvest in the 2021–22 crop year led to a significant shortage of sugar in the Philippine domestic market.  Price Increase: The shortage resulted in a price surge, sparking concerns over possible hoarding and smuggling by traders. 2. Controversy over Sugar Importation  Sugar Order No. 4 (SO 4): Released by the Sugar Regulatory Administration (SRA) on August 9, 2022, directing the importation of 300,000 metric tons (MT) of sugar to fill the production gap.  Unauthorized Action: Press Secretary Trixie Cruz-Angeles stated that President Marcos did not authorize the order.  Resignations and Inquiries: Following the controversy, SRA Administrator Serafica, Undersecretary Sebastian, and SRA board member Beltran resigned. The order was scrutinized by both houses of Congress.  Defense of Actions: -Sebastian cited a memorandum from Executive Secretary Vic Rodriguez as the reason for his actions, asserting he acted in good faith. - Valderrama argued that the decision was based on official data, supply-demand analysis, and consultations with stakeholders. 3. Senate Inquiry and Subsequent Actions  Senate Inquiry: Senate Blue Ribbon Committee investigated Sugar Order No. 6 (February 6, 2023) after a resolution by Senator Risa Hontiveros.  Reorganization of SRA: President Marcos initiated a reorganization of the SRA following the controversy, appointing David John Thaddeus Alba as acting administrator and new board members. GLABEN  4 4. Continued Government Response  Importation Plans: Despite the averted Sugar Order No. 4, President Marcos suggested the possibility of importing around 150,000 MT of sugar to stabilize the market for the rest of 2022.  Negotiations with Traders: Efforts were made to secure price concessions and consider direct imports by manufacturers to control sugar prices. SUGAR IMPORTATION FIASCO 2.0 Controversial situation in the Philippines in early 2023 where the government imported a large amount of sugar. The controversy centers around the government's decision to allow only three specific companies to import the sugar, which many people believe was unfair and potentially corrupt.  The government imported a lot of sugar: They claimed it was to help lower prices and ensure was enough sugar for everyone.  -But people think only a few big companies benefited: These companies were allegedly chosen unfairly and made a lot of money from the import  This might have hurt local sugar farmers: Local farmers potentially lost business due to the imported sugar.-  People are angry because they think it's corrupt: They believe the government favored these companies for personal gain.-  The Senate is investigating: They are trying to determine if there was any wrongdoing and if the government acted fairly The controversy is nicknamed "Fiasco 2.0" because it's similar to a previous scandal in 2022 involving sugar importation. This situation highlights concerns about corruption and the impact of government decisions on local businesses and farmers. Senator Risa Hontiveros, a vocal critic, pointed out that these three importers were selling refined sugar at ₱85 per kilo, significantly higher than the ₱25 per kilo wholesale price in Thailand. She alleged that the government's policy was "murky" and lacked transparency. The government, however, defended its actions, stating that the importation was "legitimate and fully authorized" to address rising inflation and sugar prices by establishing a buffer stock. The Senate investigation is ongoing and expected to shed light on the alleged irregularities and determine whether the government acted appropriately in handling the sugar crisis. The outcome of the investigation will likely have significant implications for future sugar importation policies and the overall sugar industry in the Philippines. CONCLUSION: The ongoing Senate investigation into the "Sugar Importation Fiasco 2.0" will determine if the government acted fairly and transparently in importing sugar. The outcome could lead to changes in sugar importation policies to prevent similar controversies in the future and promote fairness for local farmers and consumers. GLABEN  5 ASIAN REGIONALISM Asian regionalism refers to the process of political, economic, and cultural integration among countries in Asia. It involves cooperation and collaboration to address common challenges, promote economic growth, and enhance security in the region. Economic Benefits 1. Trade and Investment: Regional agreements like the Regional Comprehensive Economic Partnership (RCEP) enhance trade opportunities, allowing the Philippines to access larger markets and attract foreign investments. 2. Economic Growth: Participation in regional economic integration can boost GDP through increased exports and job creation in sectors like manufacturing and services. 3. Infrastructure Development: Regional initiatives often include infrastructure projects that benefit the Philippines, improving connectivity and logistics. Political and Security Implications 1. Regional Stability: Engaging in regional forums helps the Philippines address security challenges, such as maritime disputes in the South China Sea and terrorism, fostering a more stable environment. 2. Diplomatic Relations: Asian regionalism allows the Philippines to strengthen its diplomatic ties with neighboring countries, enhancing cooperation on various issues like disaster response and public health. 3. Collective Bargaining: The Philippines can leverage regional partnerships to enhance its bargaining power in international negotiations, particularly in trade and environmental agreements. Cultural and Social Aspects 1. Cultural Exchange: Regional cooperation promotes cultural understanding and exchange, helping to strengthen ties with other Asian nations and fostering a sense of shared identity. 2. People-to-People Links: Initiatives that promote tourism and educational exchanges contribute to stronger relationships and understanding among Asian countries. Challenges and Considerations While there are numerous benefits, the Philippines also faces challenges within Asian regionalism, such as:  Balancing Relations: Navigating complex relationships with major powers like China and the United States can be difficult.  Domestic Concerns: Ensuring that regional agreements align with local interests and address issues like labor rights and environmental sustainability is crucial. Overall, Asian regionalism plays a vital role in the Philippines' development, providing opportunities for growth while also requiring careful navigation of its complexities. GLABEN  6 UNITED NATIONS ORGANIZATION HISTORY League of Nations (1920) - first worldwide intergovernmental organization, Purpose: maintain world peace Date: Founded in 01/10/1920 in Paris Peace Conference which ended World War 1. As World War II (1941) raged, U.S. President Franklin D. Roosevelt and British Prime Minister Winston Churchill met aboard a ship in the Atlantic Ocean and issued the Atlantic Charter. This document outlined their vision for a post-war world, emphasizing self- determination, economic cooperation, and collective security. This laid the groundwork for the establishment of the United Nations. On January 1, 1942, representatives of 26 Allied nations signed the Declaration by United Nations, pledging to continue fighting the Axis powers. This was the first time the term "United Nations" was used, representing the alliance against the Axis. As the war continued, the Allied leaders discussed the post-war order and the structure of the new international organization. At the Dumbarton Oaks Conference in 1944, the framework for the UN was drafted, including the creation of the Security Council and the General Assembly. Representatives from 50 countries met in San Francisco from April to June 1945 to draft the UN Charter. The conference was chaired by U.S. diplomat Alger Hiss. On June 26, 1945, the UN Charter was signed, and the organization officially came into existence on October 24, 1945, after the Charter was ratified by a majority of signatories, including the five permanent members of the Security Council (the United States, the Soviet Union, China, France, and the United Kingdom). Early Years of United Nations  The organization quickly became the central forum for addressing global issues.  The adoption of the Universal Declaration of Human Rights  Supported the decolonization process. United Nations in the Present  Conflict resolution, humanitarian intervention, and peacekeeping  In 2000, the UN launched the Millennium Development Goals (MDGs),  The UN continues to address a wide range of global issues, including climate change, terrorism, nuclear proliferation, and humanitarian crises.  Building on the success of the MDGs, the UN adopted the Sustainable Development Goals (SDGs) in 2015, a set of 17 goals designed to address global challenges such as poverty, inequality, climate change, environmental degradation, and peace and justice by 2030. GLABEN  7 GENERAL ASSEMBLY One of the six principal organs of the United Nations (UN), serving as the main deliberative, policymaking, and representative organ of the organization. Established under the UN Charter in 1945, it provides a unique forum for member states to discuss and coordinate on international issues. STRUCTURE The General Assembly is composed of all 193 UN member states, each having one vote. This ensures that every member state, regardless of size or power, has an equal voice in the discussions and decisions of the Assembly. FUNCTIONS AND POWERS 1. Debate and Discuss 2. Decision - making 3. Recommendations 4. Electing members SESSIONS AND PROCEDURES 1. Annual Sessions – Held every 3rd Tuesday of September 2. Committees - First Committee (Disarmament and International Security) Second Committee (Economic and Financial) Third Committee (Social, Humanitarian and Cultural) Fourth Committee (Special Political and Decolonization) Fifth Committee (Administrative and Budgetary) Sixth Committee (Legal) 3. Resolutions and Reports - Draft resolutions proposed by member states or committees are discussed and voted on. Resolutions that pass are then reported to the UN Secretary-General and other relevant UN bodies. THE SECURITY COUNCIL  Lead in determining the existence of a threat to the peace or act of aggression. It calls upon the parties to a dispute to settle it by peaceful means and recommends methods of adjustment or terms of settlement.  In some cases, the Security Council can resort to imposing sanctions or even authorize the use of force to maintain or restore international peace and security.  To impose binding obligations to 193 UN members Security Council’s Five Permanent Countries: China, France, Russia, UK, and US and Ten elected members meet regularly to assess threats to international security, including civil wars, natural disasters, arms proliferation, and terrorism. GLABEN  8 Under the United Nations Charter, the functions and powers of the Security Council are: to maintain international peace and security in accordance with the principles and purposes of the United Nations; to investigate any dispute or situation which might lead to international friction; to recommend methods of adjusting such disputes or the terms of settlement; to formulate plans for the establishment of a system to regulate armaments; to determine the existence of a threat to the peace or act of aggression and to recommend what action should be taken; to call on Members to apply economic sanctions and other measures not involving the use of force to prevent or stop aggression; to take military action against an aggressor; to recommend the admission of new Members; to exercise the trusteeship functions of the United Nations in "strategic areas"; to recommend to the General Assembly the appointment of the Secretary- General and, together with the Assembly, to elect the Judges of the International Court of Justice ECOSOC (The Economic Social Council)  Deals with economic, social, cultural and health matters as well as human rights and fundamental freedoms.  Established: June 26, 1945 by the UN Charter.  Purpose: To coordinate and promote international cooperation on economic, social, and environmental issues.  Significance: Serves as the main platform for policy dialogue on sustainable development. KEY FUNCTIONS OF ECOSOC 1. Policy Review and Recommendations - conducts studies, makes policy recommendations, and advises the UN on global economic, social, and environmental issues. 2. Coordination of UN Agencies - coordinates the activities of UN specialized agencies such as the World Health Organization (WHO) and UNESCO to ensure they work towards common global goals. 3. Monitoring Progress on Sustainable Development Goals (SDGs) - tracking the global progress toward achieving the 2030 Agenda and the 17 SDGs, providing guidance and facilitating partnerships. STRUCTURE OF ECOSOC 1. Membership  54 member states elected by UN General Assembly  Members serve for three years term  Seats are based on geographic regions GLABEN  9 2. Tackling Global Challenges  ECOSOC addresses critical issues such as climate change, poverty reduction, and social inclusion.  Works to reduce inequality and promote inclusive economic growth and sustainable development ECOSOC IN GLOBAL DEVELOPMENT 1. Promoting Global Partnerships  ECOSOC brings together governments, NGOs, civil society, and the private sector to collaborate on shared global goals.  Facilitates cooperation and mobilizes resources to achieve long-term development objectives. 2. Tackling Global Challenges ECOSOC addresses critical issues such as climate change, poverty reduction, and social inclusion. Works to reduce inequality and promote inclusive economic growth and sustainable development. 3. Key Initiatives Focuses on health, education, gender equality, and environmental sustainability through its partnerships with specialized agencies like WHO, UNESCO, and UNEP. TRUSTEESHIP COUNCIL supervising the administration of Trust Territories placed under the International Trusteeship System was established in 1945 as one of the principal organs of the United Nations its creation was a direct result of the decolonization process that followed World War II its mandate was to oversee the administration of trust territories, which were former colonies or mandated territories that were deemed unable to govern themselves to promote the advancement of the inhabitants of the Trust Territories to promote their progressive development toward self -government or independence THE MAIN TASK OF TRUSTEESHIP COUNCIL 1. Monitoring the progress of territories 2. Providing Recommendations 3. Reporting to the General Assembly PALAU The last trust territory to achieve independence 1994. (End of responsibilities of trusteeship council) after PALAU gained independence Trusteeship Council’s duty was suspended True purpose: help invaded countries GLABEN  10 The Secretariat – provides the necessary administrative and logistical support for the UN's work and helps to ensure that the UN's decisions and programs are implemented effectively organizes meetings, Implementing UN decisions and programs, Coordinating UN activities, providing services to UN member states, Providing International Cooperation The Secretariat provides support functions to all of the UN's principal organs, including the General Assembly, Security Council, Economic and Social Council, Trusteeship Council (until its suspension), and International Court of Justice. These support functions include: Research and analysis- providing information and analysis to UN bodies. Translation and interpretation-facilitating communication between representatives from different countries. Conference services- organizing and managing UN conferences and meetings. Logistics- providing logistical support for UN activities. Personnel administration- managing the UN's workforce. ICJ (International Court of Justice) Highest court a continuing and autonomous body that is permanently in session established in 1945 PURPOSE 1. CONTENTIOUS CASES- solve dispute between 2 countries 2. Advisory Opinion – legal advice in accordance with article 96 of the UN charter STRUCTURE – Composed of 15 judges from different geographical region. Takes 2/3 of the judges in order to decide. ICC (International Criminal Court) Deals with individual charges against the gravest crimes such as: genocides, war crimes, crime against humanity, and crime of aggression.  To end impunity KEY FEATURES 1. Fair Trials 4. Victim’s voices are heard 2. Prosecution is independent 5. Participating victims, witnesses are protected 3. Defendants are entitled to fair proceedings 6. Outreach creates a two-way dialogue GLABEN  11 IMPUNITY  A situation in which there are no effective measures to penalize violations CAUSES  Nepotism  Corruption  Manipulation of the system FIGHT AGAINST IMPUNITY To fight impunity, international and national criminal law establishes that certain crimes are not subject to any statute of limitations. The Statute of the International Criminal Court (ICC) was adopted in Rome in July 1998, as the result of a diplomatic conference organized under the aegis of the UN. The Statute entered into force on 1 July 2002, when the sixtieth state ratified it. DUTERTE’S CRIME AGAINST HUMANITY BEFORE THE ICC  The Philippines joined the ICC in 2011 it was the 117th country to join  War on drugs during June 30, 2024  Deaths: 12,000 Filipinos; 2,555 was killed by the PNP THE EFFECTS OF WAR ON DRUGS  Psychological distress  Bullying  Violent behavior  Stopped education In June 29, 2024 only 8 Police officers have been given prison sentences. DUTERTE’S VIOLATIONS 1. Extra Judicial Killing – Killing w/o lawful authority 2. Violation of Human Rights  Right to Life (Article 3 of the Universal Declaration of Human Rights): This is the most basic human right, stating that everyone has the right to life, liberty, and security. Extrajudicial killings directly violate this right by unlawfully depriving individuals of their lives without due process.  Right to a Fair Trial (Article 10 of the Universal Declaration of Human Rights): Every individual has the right to a fair and public hearing by an independent tribunal before being deprived of liberty or life. Extrajudicial killings bypass legal processes, depriving victims of the chance to defend themselves in court.  Freedom from Torture or Cruel, Inhuman, or Degrading Treatment (Article 5 of the Universal Declaration of Human Rights): Many victims of extrajudicial killings are subjected to torture or cruel treatment before they are killed, further violating their human dignity. Violation of Human Rights Ending Phrase GLABEN  12 ICA (International Court of Arbitration)  Is a method of resolving disputes between parties from different countries outside of the court system. Purpose: provide a fair, efficient, and enforceable means of resolving disputes w/o the need for litigation in national courts History: (ICC) was founded in 1923 under the leadership of Étienne Clémentel, the first president of the International Chamber of Commerce (ICC) and a former French Minister of Finance. ROLE: PROVIDES A NEUTRAL and efficient platform for resolving international commercial disputes. administering arbitrations arbitrator management monitoring proceeding scrutinizing award cost management emergency proceeding GLOBAL PRESENCE AND OFFICES The ICC International Court Paris, France (Headquarters) New York, USA São Paulo, Brazil Singapore Abu Dhabi, UAE Hong Kong ADVANTAGES DISADVANTAGES Neutrality limited availability Expertise potential for bias Efficiency costs Confidentiality limited discovery Enforceability ADDITIONAL ITLOS – International Tribunal for the Law of the sea PCA- Permanent Court of Arbitration AT- Arbitral Tribunal SAT- Special Arbitral Tribunal AT is PCA “ad hoc body” or PCA is made for the purpose of AT GLABEN