Members: 06/28/24

Guevarra, Alethea
Mañebo, Isabella
Ramos, Sofia
Ruda, Sheena

MGT 1111 Sec 4

1. What benefits did the Philippines experience with globalization?

Globalization is when corporations or other organizations gain worldwide
influence globally. According to Majidi (2017), globalization is based on technical
breakthroughs, it has generated unprecedented opportunities for economic growth,
increased wellbeing, and provide solution to the problem of poverty and underdeveloped
countries. This has provided several advantages to the Philippines, specifically in terms
of the economy’s growth and development such as trade liberation, remittances from
Overseas Filipino Workers (OFW), and tourism revenue The first benefit of globalization
that poses a positive effect on the economic growth of the Philippines is trade liberation.
Trade openness contributes to declining transportation costs and enhanced ​information
and communication technologies​, resulting in ​the development​ of complex ​global value​
chains; this enables companies to better ​manage their​ production operations (​Dudley,
2017). Trade​ liberalization is projected to have a favorable influence on economic growth
because it promotes production efficiency, improved resource allocation, and a rise in the
competitiveness of domestic products. The second benefit is remittances from Overseas
Filipino Workers (OFWs). Remittances sent by OFWs ​are a​ major ​source of income for
several​ Filipino households. These funds increase national income. consumption and
improving living conditions. Remittances can also be used as capital to establish
companies. Thus, such outside monetary transfers improve the level of living of recipient
households. As one of the world's major beneficiaries of remittances, Philippines
received over 12% of its GDP in 2008 (Ang et al., 2009). The last benefit is tourism
revenue. The economic advantages of tourism have traditionally been evaluated in terms
of the number of tourists and foreign money generated by the business. These statistics
only offer a limited view of tourism's overall economic impact. According to statistics
from PSA (2024), the tourist industry in the Philippines has increased growth in 2023,
accounting for 8.6% of gross value in addition it is assessed by Gross Domestic Product
(GDP) contribution. The amount of tourist that spends in this country has increased, by
87.7%, which is Php 697.5 ​billion in 2023, while domestic tourism​ spending or
​expenditure​ increased ​by 72.3​% which is ​Php2.67 trillion (US$45 billion​) (Newsdesk,
2024).
2. What negative effects did the Philippines experience?
Globalization is where trade leads the nations to be connected. It is also the
international movement of goods, services, information and people. This results in
interconnectedness among the countries. With globalization, many Filipinos have the
opportunity to work in other countries for larger salaries and more job opportunities.
However, this could lead the overseas Filipino workers (OFW) to be separated from their
families for a very long time. The ones who are left behind especially their children may
experience the feeling of abandonment. Due to a long time they have to spend working in
a place far away from their home, it could have a psychological impact on the children
and the overseas Filipino workers according to Delorino, M. Additionally, since a lot of
Filipinos are choosing to work in another country for their future, this could lead to the
impact of brain drain. Brain drain is migration of an individual to another nation and
results in losing the skills needed in the local area. Furthermore, children are said to be
involved in labor due to globalization. In fact, according to the 2011 Survey on Children
conducted by Philippines Statistics Authority (PSA), there is a massive amount of 2.1
million between the ages of seven and seventeen children here in our country and 95% or
more than a million of those children are involved in risky work. This shows that even
though globalization has a positive impact in the Philippines, it also has a negative
impact.

3. Did the Philippines experience net benefits from globalization explain

Globalization affected the Philippines in many ways. One of them was opening
the ​market to foreign trade and​ increasing ​both capital flows and financial integration​. In
​2023, total exports accounted for 27% of the country’s GDP​. ​Services exports continue​​to
be a significant contributor to economic growth, recording some of the strongest​ ​growth
and increasing its share of gross domestic product (GDP) from 12% in 2022 to​ ​13% in
2023​
​
The country’s total export sales in April 2024 amounted to USD 6.22 billion,
indicating​ ​an annual increase of 26.4 percent from the USD 4.92 billion total exports in
the same​ ​month of the previous year​. ​By major type of goods, exports of manufactured
goods​ ​contributed the largest to the country’s total exports in April 2024 amounting to
USD​​4.99 billion or a share of 80.2 percent​.
 On the first quarter of 2024, the approved Foreign Direct Investment totaled Php
148.43 billion. ​Electricity, gas, steam and air conditioning supply industry received the​
​largest amount of approved investments at PhP​ 109.19 billion or 73.6 ​percent of the​​total
approved FI. This was followed by​ Accommodation and food service activities with PhP
20.09 billion and Manufacturing with PhP 12.62 billion, or shares of 13.5 percent and 8.5
percent, respectively.

Reference:

​Ang, A. P., Sugiyarto, G., & Jha, S. (2009, December). Remittances and household​ ​behavior in
the Philippines. adb.​
​https://www.adb.org/sites/default/files/publication/28401/economics-wp188.pdf​

Delorino, M. (2024) ​Effects of Globalization in the Philippine Context. Slideshare.​

​https://www.slideshare.net/slideshow/effects-of-globalization-in-the-philippine-context/2​
7889691

Dudley, W (2017): “Benefits and challenges for globalization”, remarks for the Bombay​ ​Stock
Exchange​.

Redillas, M. (2023). OFW Phenomenon and Family Problems in the Philippines.​

​mariaisquixotic. https://mariaisquixotic.com/ofw-phenomenon​/

Young, J​. (2024). ​Brain Drain: Definition, Causes, Effects, and Examples.​Investopedia.
​https://www.investopedia.com/terms/b/brain_drain.asp#:~:text=Brain%20drain​%20an
%​20the%20exodus,make%20up%20for%20the%20shortfall​.

​Majidi, A. F. (2017). Globalization and economic growth: The case study of developing​
​countries. Asian Economic and Financial Review, 7(6), 589–599.​
​https://doi.org/10.18488/journal.aefr.2017.76.589.599​

PSA. (2024, June 18). Philippine Tourism Satellite Accounts. ​Republic of The​ ​Philippines
Philippines Statistic Authority. https://psa.gov.ph​/statistics/tourism

Newsdesk. (2024, June 20). ​PSA: Philippine Tourism Industry booked highest ever​ ​growth in
2023. IAG​.
​https://www.asgam.com/index.php/2024/06​/20/​psa-philippine-​​tourism-industry-booked-highest-
ever-growth-in-​2023/#:~:text=The%20Philippines’%20tourism%20industry%20posted,from%20
the%20Philippine%20Statistics%20Authority.

​The Impact of Globalization on the Philippine Economy. (2023, January 05).​ ​GradesFixer.
https://gradesfixer.com/free-essay-examples/the-impact-of-globalization-​​on-the-philippine-econo
my​/

Pascasio, M. (2024, May 16). Approved Investment. PSA Gov.

https://psa.gov.ph/statistics/foreign-investments

Link to the ppt:

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