Eco Paper Essay Example

Eco Paper Essay Nicanor Reyes Street, Sampaloc Manila City, 1008 Metro Manila In Partial Fulfillment in Introduction to Economics Present: An Economic Analysis Submitted by : Gladys Socia Jen Chua Lei Ureta Nicole Yu Jihad Taha Aaron Ogad Christian Vinas Charles Oroceo Nicka Casssandra Jerao Abbygale Evangelista Michaela Ronquillo Abigail Tiongson Submitted To: Dr. Darwin Bonifacio Professor Date Submitted : ______________________ I. Problem: Import-Export Imbalance Introduction:Among the many economic problems faced by the Philippines, the imbalance of imports and exports creates a toll on our development with foreign countries. The negative trade is heavy and only counterbalanced by the service account surplus. Over the last two decades, Philippine exports have shifted from commodity-based products to manufactured goods. However, in the midst of the current global economic recession, the exports of electronics, garments and textiles have yet to reach a level of import neutralization. Economic Anal ysis: Our country produces a variety of different products.But Filipinos don’t give as much patronage to local products as compared to imported goods. If asked, most of our countrymen would prefer purchasing goods from other countries, over products that are domestically grown and produced. Most countries attempt to achieve a trade balance, in which the flow of imports and exports is relatively equal. If a country exports too much, it may not be able to support its domestic needs, while a country which imports excessive amounts of products may not have enough money to support the high volume of imports.In a country with a trade balance, import and export rates are about equal, with nations exporting excess items for sale, and importing the goods that it needs. Historically, the Philippines has been an important centre for commerce for centuries for its ethnic minority, namely, the Chinese who were also its first occupants. The archipelago has also been visited by Arabs and In dians for the purpose of trading in the first and early second millennium. As of 21st century, the country is member in several international trade organizations including the APEC, ASEAN and WTO.Since 1980s, the Philippines have opened their economy to foreign markets, and established a network of free trade agreements with several countries. The United States is one of the Philippines top trading partners. In 2010, according to US Department of Commerce dad, trade between the Philippines and US amounts to US$15. 4 billion. US is also the Philippines largest foreign investor, with foreign direct investment close to US$6 billion at the end of 2009. Under the new Aquino administration, the government plans to open up the country to more foreign investment in industries such as business processing operations, mining and tourism.However, this move may be hindered by restrictions such a prohibition of foreign ownership of land and public utilities. Philippines Import and Export Indicato rs and Statistics at a Glance (2010) Total value of exports:  US$50. 72 billion Primary exports commodities: semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits Primary exports partners:  US (17. 6 percent of total exports), Japan (16. 2 percent), Netherlands (9. 8 percent), Hong Kong (8. 6 percent), China (7. 7 percent), Germany (6. percent), Singapore (6. 2 percent), South Korea (4. 8 percent) Total value of imports:  US$59. 9 billion Primary imports commodities:  electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic Primary imports partners:  Japan (12. 5 percent of total imports), US (12 percent), China (8. 8 percent), Singapore (8. 7 percent), South Korea (7. 9 percent), Taiwan (7. 1 percent), Thailand (5. 7 percent) Although there are many variances that cause the imbalances, the following are some specific reasons .Convergent or divergent dynamics of imports and exports are the first causes of trade balance changes. Everything that impacts asymmetrically on imports and exports can impact the trade balance. In particular, price and non-price competitiveness is relevant. If external pressure forces down the prices at which a country sells its exports, then a trade deficit is more likely (terms of trade effect). In other words, in a hierarchical world, trade balance can reflect political balance of power.A faster GDP growth than trade partners ones usually results in trade deficit, since imports are elastic to GDP (they raise more than proportionally). Currency exchange rate can be very important: possibly due to a fixed exchange rate and a higher inflation rate than commercial partners, an overvaluation of the domestic currency can lead to deep trade deficits on most products and with most countries. A sharp devaluation can dramatically improve all these relationships Our country is producing a lot of different product.But we rarely notice it, we Filipinos patronized the product of our neighboring country because now in our day using foreign and branded products will make you look â€Å"cool† while using Philippine products will make you look cheap, without knowing that some of Philippine product was bought by other countries and they just use their brand name in our products. I think that our government should follow what the Chinese did before, they control the importing of foreign products and let make their people buy their own products. Now as we see the China was one of the richest countries in the world.I think that if we do the same there is a great chance that our country will one day became one of the richest countries in the world. II. Problem: Low Market Development Introduction: Marketing has always been prevalent in creating various impacts on a nations growing economy. Economics is strongly involved with the booming industries through the use of busi ness strategies. Product innovation is also an important factor in the economic development of any country. It is primarily vested on the ability of the constituents to formulate ideas beneficial to both the masses and the countrys financial status.The Philippines, known as a financially democratic country, has an economy that is marked as the 40th largest in the entire world as stated by the 2012 International Monetary Fund statistics. It is also one of the emerging markets in the world as a heavily industrialized country, it has been transitioning from being centered on the agricultural sector to service providing and then to manufacturing various products. According to the CIA Fact book, the estimated 2012 GDP (purchasing power parity) of the Philippines was 424. 355 billion in estimation.Goldman Sachs, an American multinational financing bank, estimates that by the year 2050, the Philippines will be the 14th largest economy in the world. Goldman Sachs also included the Philippi nes in its list of the Next Eleven economies. According to HSBC, another well-known and influential financial institution, the Philippine economy will become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the Southeast Asian region by 2050. These predictions speak highly about the Philippines improvement in the business sector which will probably lift the country out of the 3rd world nation stigma.In order to make the possible improvements, it is suggested that the Philippines must focus more on exportation of goods and services such as: electronic products, semiconductors, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits. With the help of foreign countries charting throughout the globe, the plan on investing more on exportation may be a plausible stepping stone in the transformation of the once forlorn economy to a thriving economy that is at par with first world economies like that of Japan, Singapore and the like.Market development pays a huge page in promoting innovation within the business sectors. This would entail the expanding of potentials markets through new users and new uses. The strategy would have to be remodeled with the use of new geographic segments, new demographic segments, new institutional segments and new psychographic segments in order to reach out to important factors in the market. Economic Analysis/Conclusion: The year 2012 has been a magical year for the Philippines real state industry.Stbale economic growth, low interest rates, and increasing home investment of overseas Filipino workers drove the steady demand in the local property market. Add in the continuous growth of foreign investment, expansion of the off-shoringand outsourcing industries, and the influx of expatriate workers. All these factors have combined to the shape the property boom that is changing the skyline not only of the metropolitan region but of the provincial cities as we ll. The Philippines has the fastest growing economy among Asian countries for the first quarter of 2013 according to the National Statistical Coordination Board (NSCB).Our beloved country is also considered as the 40th largest economy and one of the emerging markets in the world. Philippines is considered as a newly industrialized country. It has been transitioning from agriculture to services and manufacturing. It is said that the quarterly growth rate was the highest record since reformist President Benigno Aquino III took office in 2010 on a promise to fight corruption and cut poverty. The Philippines is on the verge of regaining decades lost to slow growth, thanks to government efforts to instill confidence that have kept the country on the investors’ radar even amid financial volatility. The restoration of macroeconomic balance has helped insulate domestic conditions from recurring global financial turmoil and volatile capital flows,† the Institute of International Finance (IIF) said in report dated Aug. 14. â€Å"The key issue for the near-term outlook is maintaining macroeconomic stability. The strong growth at the turn of the year was not a transitory phenomenon, but evidence that the economy was regaining momentum,† it added. IIF— a group of global financial institutions— noted the economy could surprise with a 7. -percent growth this year, faster than last year’s 6. 8 percent, following the first-quarter uptick of 7. 8 percent. Part of the reason for the sterling performance, the group said, was the Philippines’ â€Å"rising global prominence† hinged on the Aquino administration’s budget discipline and improving public governance. In the SONA last month, Mr. Aquino outlined several economic reforms such as the rationalization of fiscal incentives and the relaxation of the â€Å"cabotage† law, which currently restricts foreigners from plying interisland shipping routes in the country .These planned reforms, as well as the crackdown on smuggling that was also highlighted in the President’s speech before Congress, were welcomed by foreign investors as signs of the administration’s seriousness to further strengthen the country’s economic base. Registered investments for the month reached $2. 5 billion. The bulk of these funds went to publicly listed shares, while the remaining went to peso time deposits and government securities. The registered investments for the month were 11. 3 percent lower than June’s figure, but this was mainly due to the one-time block sale of shares in publicly listed Cosco Capital Inc. the BSP said. Based on the research conducted, the country must appoint credible and competent managerial heads in order to reach its optimal goal in progressing market structures. A marketing manager has to consider certain questions before implementing a market development strategy. For example: 1. Are they profitable? Profitabi lity is an important factor in implementing ideas within a market-centered civilization. Other questions regarding the development of the market would include the following: 2. Will it require the introduction of new or modified products?And, 3. Are the customer and channel well enough researched and understood? The marketing manager uses four groups to focus the market segment decision: existing customers, competitor customers, non-buying in current segments and, new segments. III. Problem: Unemployment Introduction: Unemployment occurs when people are without work and actively seeking work. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.The Philippines remains one of the most resilient economies in Southeast Asia, but such growth is neither sustainable nor inclusive as joblessness remains a problem for most Filipinos. Philippin es jobless rate increased to 7. 5 percent in April from 7. 1 percent reported in January and 6. 9 percent in April of 2012. The unemployment rate was pushed up by job losses in the agricultural sector due to extreme weather conditions. The employment rate reached 92. 5 percent, down from 93. 1 percent a year ago, due to a drop in the number of agricultural workers.Laborers and unskilled workers comprised the biggest group making up one-third (32. 6 percent) of the total employed persons; 57. 5 percent of the total employed population were wage and salary workers and 63. 5 percent were working full time. There were more males (61. 4 percent) than females (38. 6 percent) among the unemployed. The age group 15-24 made up 48. 2 percent of the total unemployed, while the age group 25-34, 30. 9 percent. By education, about one-fifth (21. 3 percent) of the unemployed were college graduates, 14. percent were college undergraduates, and 31. 7 percent were high school graduates. In the latest Asian Development Outlook 2013 released, the Manila-based lender forecasts Philippine gross domestic product to expand 6 percent this year and in 2014. According to ADO 2013, persistently high levels of unemployment and underemployment remain a key concern in the country. As the latest data from the National Statistics Office has shown, about 7 percent of the 40 million labor forces are unemployed, while about 20 percent are underemployed.The Philippines has a strong growth in its hand and the next step for the Philippine government is to translate this strong growth into more jobs that will benefit most Filipinos. President  Benigno Aquino  has promised to cut unemployment to 6 percent at most by the end of his term in 2016. Proposals include easing curbs on foreign investment, boosting tourism and infrastructure to provide more work outside the capital, and expanding farming and fishing, said Economic Planning Secretary Arsenio Balisacan, who’s in charge of the plan.Th e low investment share is because past economic growth has depended more on services that are less capital intensive than industry. We have to provide something like a million new jobs; we do have a significant increase in population. † Almost  half of all jobless  Filipinos are between the ages of 15 and 24, according to the government statistics office. The biggest area of employment remains  agriculture and fishing, which provides work for 30. 4 million people, or almost a third of the population. About 8 percent work in manufacturing.Call center agents are the most in demand, followed by salespeople and service crew, according to  Phil-JobNet, the government’s official job portal. The site has 14,165 vacancies in so-called business process outsourcing. With limited opportunities at home, many jobseekers go abroad to find work. The number of overseas Filipino workers climbed 15 percent in 2011 to almost 1. 7 million, the Philippine Overseas Employment Adminis tration said. The funds they sent home totaled  $21. 4 billion  last year, about 10 percent of gross domestic product. Economic Analysis/Conclusion:One of the reasons why people nowadays are jobless is because people are lazy. The global crisis does take effect on this issue; so does one’s stature in life, but being predominantly sluggish is also a factor in unemployment. One’s financial status can also be a factor, in a sense that without proper and complete education, one’s chances of being hired is gradually slimmed down. Here are points on why a lot of people remain jobless amidst modern globalization efforts: 1. Low self-esteem due to lack of financial aid, 2. The Global Crisis which deeply affects the nation’s economic progress, 3.Educational attainment does not go pass collegiate level due to lack of financial resources. As the days go by, developers take more technological advances in creating more job opportunities for the masses. One example would have to be the efforts done by local institutions such as TESDA – which aims to provide vocational courses and setting lower costs so education can be better attained. This is where the blue collar jobs come in. more and more people are being open to blue collar jobs than white collar jobs due to its attainability to the masses.Even non-collegiate graduates may belonged to the blue collared sector. One of the factors we take much pride in is our bountiful number of English proficient workers in all different kinds of fields of expertise. This is possibly why our industry has reached so much success in business process outsourcing sectors such as call centers. But given those facts, why do we still see an evident gap in the job sector in the Philippines? Around 2. 8 million people are jobless today. According to the World Bank around 10 million people nationwide are unemployed and underemployed.Based on a million Filipinos added to labor force annually in the Philippine s, our government can create 14. 6 million jobs until 2016. Half a million Filipinos graduate college every year, yet a lot of companies still have difficulty looking for credible workers. This is because the courses chosen by the graduates are usually not in-sync with the job description needed for employment. Courses/programs being taken up in school are essential since they give an edge of expertise for someone in the labor force over those whose course may be considered far-fetched.Colleges and universities across the nation are now taking action to revise and update their course offerings that would jive well with the ever-changing trends of the industry and business sector. CHED encourages schools to open new courses leaning towards business, medicine, education, hotel and restaurant management, information technology and, computer courses. It is believed that through this, students will be more mindful and rightfully guided to take courses that are in demand. IV. Recommendati on: * We therefore recommend that Filipinos should support, patronize and buy locally made products.This can help shape the economy and aid in its growth and development. Not only can it help support the money flow and ease financial burdens, it can also be a factor in promoting nationalism amongst countrymen. * We therefore recommend that the government must create steps in further developing and supporting every sector in the economy. For instance, the government should regulate and implement more rigid rules in the overall control of the importation of foreign products. * We therefore recommend that Filipinos be aware of information about the economy and the various ways to help support, preserve and flourish it.