GOOD DAY!

MABUHAY!

Submitted By: Ricca Shaine U.

Abeleda
 CONTENTS OF MY REPORT
1. OVERVIEW OF USA AND PHILIPPINES
▪ GOVERNMENT STRUCTURE
▪ POVERTY LEVEL
▪ EXCHANGE RATE

2. BUSINESS POLICIES AND STRATEGIES OF USA AND PHILIPPINES IN

TERMS OF:
▪ BUSINESS REGISTRATION AND LICENSES
▪ CORPORATE INCOME TAX
▪ FOREIGN DIRECT INVESTMENT
▪ GOVERNMENT SUPOORT
▪ INTERNATIONAL TREATIES & MEMBERSHIP
▪ LABOR STANDARDS
▪ LABOR MARKET UNIONS
BUSINESS POLICIES AND STRATEGIES OF
USA IN COMPARISON TO PHILIPPINES
1
GOVERNMENT STRUCTURE
UNITED STATES OF AMERICA PHILIPPINES

Both has a 3 same branches: Legislative, Executive, and Judicial Branch

Legislative confirms or rejects Presidential appointments, and has the authority to

declare war. This branch includes the senate and house of representatives.

Executive carries out and enforces law . It includes the Presidents, Vice
President,Cabinets.

Judicial interprets the meaning of laws, applies law to individual cases, & decides if law
violate the Constitution.
 1
GOVERNMENT STRUCTURE
UNITED STATES OF AMERICA PHILIPPINES

The U.S. Constitution establishes a government
based on "federalism." This is the sharing of
power between the national and state (as well as
local) governments.
The USA has a 50 states.
The Philippines is Southeast Asia’s oldest
democracy.
The Philippines has a 17 Regions, 80 provinces and
39 chartered cities.

The President has a four years term with a The President serves a six-year term and cannot be
capability to re-elect two times only. re-elected
First section
 This is a map
11 FEDERAL
STATE
CENTRAL GOVERNMENT
IS THE METRO MANILA
EACH FEDERAL MUST
HAVE
Governor, Vice Governor,
and 3-6 senators that will
represent on the national
congress
80% Federal
State
20% Central
Government
 1
ECONOMY OF USA
UNITED STATES OF AMERICA PHILIPPINES

Main Products: Computers, Machinery Equipment, Main Products: Agricultural Products (Rice,
Plastics, Gems, Fuels. Coconuts, Sugarcane), Vehicles, Machinery
Equipment

Populations: 332, 915.073 (.58% increase from Populations: 111,046.913 (1.34% increase from
2020) 2020)

Unemployment Rate: 6.3% as of Jan 2021 Unemployment Rate: 6.50% as of Jan 2021

Inflation Rate: 2.24% (Projected annual inflation Inflation Rate: 4.2% (uptrend to highest as of
rate in the USA January 2021) January 2021, Considering the highest inflation
recorded since February 2021)
 1
ECONOMY OF USA
UNITED STATES OF AMERICA PHILIPPINES

GDP: 21,921.59 billion dollars as of 2021 GDP: 360,000.00 billion dollars 6.04 % increase
-2.3 growth
FDP: -251 million billion dollars (Chinese economy FDP: 499 million in June 2020 (7.1% )
brought more foreign direct investment than any
other country, during covid-19 pandemic rises)
 1
POVERTY LEVEL
UNITED STATES OF AMERICA PHILIPPINES

7.8 million american falling into poverty during 22 million or 21.6% has a great affect in pandemic
pandemic, with a 11.7% of the populations times, furtherment the government has
implemented various programs and reforms to
reduced the rate before the 2021 ends.

This Photo by Unknown Author is licensed under CC BY-SA-NC

 1
EXCHANGE RATE
UNITED STATES OF AMERICA PHILIPPINES

Currency: United States Dollar (USD) Currency: Peso (Php)

US Dollar to Philippines Peso - 1 USD = 48.71

Philippines Peso to US Dollar - 48.71 Php = 1 US
pesos
Dollar
BUSINESS POLICIES
AND STRATEGIES OF
USA COMPARED TO
PHILIPPINES
 BUSINESS REGISTRATION & LICENSES
Business name should start to register in
USPTO (the United States Patent and
Trademark Office)
SBDC – promotes small business
development, helps businesses secure
government contracts, and
provides assistance and advice on how small
businesses can increase revenues and profits
Sole Proprietorship- is taxed through the
personal tax return of the owner.
Department of Trade industry -It is committed
to protecting the rights and interests of the
consumers and is also committed to
developing policies and programs aimed at
sustaining the growth and development of
the Philippine economy
DTI mainly role also is to advice services and
give a business information and advocacy.
This is to make sure no other business or
organization has the same name as yours. DTI
registration is the first step for sole
proprietorship businesses
 BUSINESS REGISTRATION & LICENSES

Limited Liability Company (LLC) - refers to Securities and Exchange Commission (SEC).
a business entity that combines the tax The Commission is the lead government
advantages of a partnership with the liability agency that regulates and supervises the
protection of a corporation. operation of all corporations, partnerships or
associations who are the grantees of primary
franchises and/or a license or permit issued in
the Philippines.
Business Partnership - maximum limit in case
of partnerships was 10 and 20 for
banking business and
other businesses respectively.
For Corporation, they must filed also a LLC
with state and creates an LLC Operating
Agreement.
 BUSINESS REGISTRATION & LICENSES
STANDARD REQUIREMENTS:
A. Federal Tax Number or Employer A. DTI- BUSINESS NAME
Identification Number (EIN) and register your
business at the federal level. It is equivalent to
the SSN (Social Security Number) for your
business.
B. Small Business Administration (SBA) B. SSS - SOCIAL SECURITY SYSTEM

C. Limited Liability Company (LLC C. PHIL HEALTH

D. MAYOR’S OFFICE
E. BUREAU OF INTERNATIONAL REVENUE
REGISTRATION
 CORPORATE INCOME TAX
CORPORATE INCOME TAX IN USA IS 21% 30% rate both for domestic and resident
foreign corporation, based on net taxable
income.
 FOREIGN DIRECT INVESTMENT
United States was the second-largest investor
in the world - after Japan - with FDI outflows
reaching USD 125 billion.
The US government policies on taxation and
regulation offer foreign investors wide
freedom. Nevertheless investments controlled
by foreign governments may be subject to
restrictions.
The United States Foreign Investment Review
Act which will allow the Department of
Commerce to examine the economic effects
of certain foreign investments
Legislation liberalising business practices
has opened up more areas for investment,
granting foreign investors the same
incentives as other ASEAN members while
simplifying procedures.
In domestic market
enterprises, foreigners can invest as much as
one hundred percent (100%) equity except in
areas included in the negative list.
"Export Development Act of 1994“
 GOVERNMENT SUPPORT

MSMEs in economic activity, in creating MSMEs in the Philippines provide a access to

employment and incomes, particularly for the the market, helping a financial profit, and
poor and marginalized groups, as service assistance that enables communities to
providers (for example in education, health, determine and develop & promote products or
water and sanitation) services rooted it its local culture.
SBA provides assistance through consulting,
access to business and disaster loans, and
with federal contracting in addition to
providing valuable resources on starting and
running a business
Smallholder farmers and agricultural-focused
MSMEs.

This Photo by Unknown Author is

licensed under CC BY-SA-NC
This Photo by Unknown Author is
licensed under CC BY
 LABOR STANDARDS
The FLSA or the Fair Labor Standards Act in The Labor Code of the Philippines stands as
USA establish minimum wage, overtime pay , the law governing employment practices and
record keeping & youth employment labor relations in the Philippines.
standards.
Minimum Age: 14 years old for non- Minimum Age: 15 years old.
agricultural jobs, 16 may work with restricts
hours, and 18 years old may prohibits
employed in occupations.
Minimum Wage Rate: 8 USD per hour subj for Minimum Wage Rate: New Metro Manila 500
both state and federal. to 537 Php. 400 to 430 Php per day.
Normal Work Hours: 8.2 hours for men and Normal Work Hours: 8 hours
7.9 hours for women.
Rest Day: 1 for each week. Rest Day: 48 hours after 6- 7 days of work.
 LABOR STANDARDS
Overtime: Overtime must be paid for
any hours worked over 40 in the workweek at
the rate of one and one half times the regular
rate of pay.
Termination: Termination of employments in
USA are
• Incompetence, including lack of productivity or
poor quality of work
• Insubordination and related issues such as
dishonesty or breaking company rules
• Attendance issues, such as frequent
absences or chronic tardiness
• Theft or other criminal behavior including
revealing trade secrets
Overtime: Additional pay of 25% of a covered
employee’s hourly rate for work performed
beyond 8 hours a day for overtime work.
Termination: Termination of employments in
Philippines are
• serious misconduct;
• willful disobedience;
• gross and habitual neglect of duty;
• fraud or breach of trust;
• commission of a crime or offense against the
employer, his family or representative;
• other similar causes.
 LABOR STANDARDS
• Sexual harassment and other discriminatory An employer shall observe procedural due
behavior in the workplace process before terminating one’s employment.
• Physical violence or threats against other
employees
Retirement Age: 66 years of age. Retirement Age: 65 years of age.

This Photo by Unknown Author is licensed under CC BY-

NC-ND This Photo by Unknown Author is licensed under CC BY-NC-ND
 LABOR MARKET UNION
U.S Department of Labor POEA PHILIPPINE OVERSEAS EMPLOYMENT
AGENCY
U.S Bureau of Labor and Statistic- LABOR UNIONS

National Education Association (NEA) (DOLE) DEPARTMENT OF EMPLOYMENT

AGENCY
Service Employees International Union (SEIU) BUREAU OF LABOR AND EMPOLYMENT

American Federation of Teachers (AFT)

The American Federation of State, County,

and Municipal Workers (AFSCME)
International Union, United Automobile,
Aerospace and Agricultural
Thank
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