• Scarcity of • Population • Technology Resources Dynamics • Globalization and • Urbanization and • People Economic Power Industrialization Empowerment Shift • Peace and • Climate Change Security SCARCITY OF RESOURCES
• Law of Supply and Demand
• Scarcity of Resources • Top 5 Trends • Impact on Public Safety and Security Law of Supply and Demand • The Law of Demand: At higher prices, buyers will demand less of an economic good • The Law of Supply: At higher prices, sellers will supply more of an economic good. • These two laws interact to determine the actual market prices and volume of goods that are traded on a market. • However, there are other independent factors that can affect the shape of market supply and demand, influencing both the prices and quantities that we observe in the market. Scarcity of Resources • This refers to the lack of availability of supplies required to maintain life, or a certain quality of life.
• It is a perpetual problem for economic theory, which often
assumes that humans have unlimited needs and wants but must find ways to fulfill these wants using scarce resources.
• Resource scarcity can be exacerbated by climate change,
pollution, deforestation, and other forms of environmental damage. MG#51: Asia Will Feed and Produce for the World • Multinational corporations source raw materials and set up manufacturing plants in Asia for cost efficiency and proximity to market distribution hubs • China, Vietnam, Thailand, Bangladesh, Malaysia, Indonesia, Cambodia, Sri Lanka, and the Philippines have benefited from this economic boon.
Impact: Potential breaches of the intellectual property
laws, taxation and anti-smuggling laws. Authorities should be vigilant in all ports of entry as well as deploy intelligence officers to survey commercial and industrial hubs. Top Buyers of Philippine Exports MG#52: Emerging New Tech Hubs • Japan, Germany, US were the traditional tech-hubs of the world but now, we are seeing the rise of China, India, Taiwan, Singapore and South Korea. • Competitiveness is key in developing key niches that will make a country successful in specific industries (e.g. watches of Switzerland, chocolates of Belgium, cars of Japan, textiles of India, tea of Sri Lanka, gaming of Macau) • The dent both in our BPO and tourism industries is poor connectivity.
Impact: The Philippines key strengths are in the following
industries: academe, entertainment, healthcare, IT. These industries will have the highest potential for contributing significantly to the GDP. All except IT are heavily regulated. MG#53: An Era of Fakes • There is currently a proliferation of fake products in the market. Luxury goods are imitated by counterfeiters. Fake food products are notoriously coming out of China. Fake skincare-hygiene products, supplements and over-the-counter medicines are flourishing in flea markets and thrift stores. • Every country has a specific government agency in-charge of monitoring and apprehending violators of Intellectual Property Rights Law and Fair Trade Act
Impact: The Intellectual Property Office, Bureau of Food
and Drugs and Department of Agriculture are the responsible agencies. Public safety officers should be wary of these products’ effect of the health of consumers. MG#54: Hoarding and Overpricing • During this time of a pandemic, many have been apprehended for hoarding basic supplies and commodities and selling them online with a hefty margin. • Taking advantage of the vulnerabilities and economic situation of many Filipinos is a crime and is punishable by law in accordance with the Bayanihan to Heal as One Act of 2020. • Typical items hoarded are sanitizers, cleaning agents, facemasks, faceshields, canned goods, packed noodles, rice, 3-in-1 sachets, vitamins, flu tablets)
Impact: There must be a hotline where ordinary citizens
may report suspicious activities likened to hoarding and overpricing. MG#55: Importation and Smuggling • This is one of the risks and adverse impacts of globalization. • Importation helps the country in terms of income generation and it provides jobs to many workers within the supply-chain • Smuggling, on the other hand, is illegal and it is considered a criminal activity. It cripples the economy because it deprives the country of revenues.
Impact: The local authorities may deploy intelligence
officers in the business community to identify potential smugglers who evade taxes and other government revenues. Q&A End of Part 6