Juliana Reign Rueda INTERNATIONAL BUSINESS AND TRADE

BSMA 3A PRELIM ASSIGNMENT

1. What is the import and export deficit in the Philippines?

- Due to a sharp decline in imports relative to exports, the Philippines' trade
deficit shrank from USD 4.52 billion in December of last year to USD 4.01
billion in December of 2023.

2. How Import and Export affect the economy?

- Customers in our global economy are accustomed to seeing goods in their
neighborhood supermarkets and retail establishments from all over the world.
These imports, or goods from overseas, give customers more options.
Additionally, consumers can better manage their tight household budgets by
importing goods because they are typically produced at a lower cost than their
domestic counterparts.
Maintaining the proper balance of imports and exports is crucial for a country
because the importing and exporting activity of a country can influence its
GDP, its exchange rate, its level of inflation, and interest rates. When a country
imports too much relative to its exports a country that ships products to a
foreign destination can distort the nation's balance of trade and devalue its
currency. The devaluation of a country’s currency can have a huge impact on
the everyday life of its citizens because the value of a currency is one of the
biggest determinants of a nation’s economic performance and GDP.

3. What are problems in trade in the Philippines? Give at least 3.

- Infrastructure Deficits: Improper ports, highways, and transportation networks
are just a few examples of the inadequate infrastructure that seriously hinders
the effectiveness of trade. Inadequate infrastructure raises the cost of logistics,
causes delays in transit, and impedes the efficient movement of goods both
nationally and globally. This shortcoming makes the nation less competitive in
international trade.
- Bureaucratic Red Tape and Corruption: Excessive regulations, convoluted
bureaucratic procedures, and corruption in government agencies all add to the
delays and extra expenses that businesses engaged in commerce face. Difficult
to navigate processes for acquiring licenses, permits, and clearances not only
 make doing business more difficult but also deter foreign investment and stunt
the expansion of domestic businesses.
- Limited Market Access and Trade Barriers: Trade barriers, tariffs, and non-
tariff barriers imposed by other nations make it difficult for the Philippines to
access international markets. These obstacles limit the market opportunities for
local businesses by limiting the export of Philippine goods. Extension and
diversification of trade may also be hampered by the absence of bilateral and
multilateral trade agreements and the nation's scant involvement in regional
economic blocs.