ECODEV1
ECODEV1
ECODEV1
Manila, Philippines
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Presented by:
Names of Members
Acuzar, Joyce
Brucal, Camille M.
Danao, Ma. Erika D.
Obra, Lei
Rey, Alexis Mae R.
Presented to:
MR. IRENEO R. AGUILAN
December 3, 2018
I. INTRODUCTION
2. What are the factors that makes up the foreign direct investment in the
Philippines?
1. (a) Advantages
Firstly, with FDI, international trade made it easier, and spurr economic
development which creates a beneficial environment for the investors and to the
local industry. They build new companies and create new opportunities for
people to be employed and this leads to increase in income and buying power of
the people that leads to an economic boost. Another one big advantage is, the
development of human capital resources. Foreign direct investment allows
resource transfer and other exchanges, where new technologies and skills can
be access by different countries. It also reduced disparity between revenues and
costs which means countries can make sure that it can be sold easily, and
production cost will be the same. The workforce productivity in the Philippines
also increased with the facilities and equipment provided by the Foreign direct
investment. Another big advantage is the increase of our country’s income. With
higher wages, the national income increases. As a result, economic growth
spurred.
(b) Disadvantages
However:for all its positive aspects or advantages, the foreign direct
investment has this what we called, disadvantages or cons. Political issues can
instantly change, it can be risky. As we notice there are changes in our country’s
exchange rates it is because of FDI, that can be an advantage of one country
and can be disadvantage to another. The major effect that our country is
experiencing now is the Inflation increases, local market is affected badly it is the
indirectly disadvantage of foreign direct investment, the economically backward.
3. Foreign investment is important due to the fact that it develops our economic
growth and improves the economy itself. The innovation it brings can change our
economy to a better one.
Proposed Solution