GROUP 1 – Foreign Investment Foreign Portfolio Investment (FPI) refers to the

purchase of securities and other financial assets

What is FOREIGN INVESTMENT?
by investors from another country. Examples of
Foreign investment involves capital flows from foreign portfolio investments include stocks,
one country to another, granting the foreign bonds, mutual funds, exchange traded funds,
investors extensive ownership stakes in American depositary receipts (ADRs), and global
domestic companies and assets. depositary receipts (GDRs).

 Foreign investment refers to the investment Foreign Institutional Investment (FII)

in domestic companies and assets of
Foreign Institutional Investment (FII) refers to
another country by a foreign investor.
the investment made by a country’s citizen in
 Large multinational corporations will seek the fiscal resources and manufacturing process
new opportunities for economic growth by
of some other nation i.e. to invest in the assets
opening branches and expanding their belonging to a different country other than that
investments in other countries.
where these organizations are based.
How Foreign Investment Works FOREIGN INVESTMENT ACT OF 1991 RA NO.
Foreign investment is largely seen as a catalyst 7042
for economic growth in the future. Foreign It is the policy of the State to attract, promote
investments can be made by individuals, but are
and welcome productive investments from
most often endeavors pursued by companies foreign individuals, partnerships, corporations,
and corporations with substantial assets looking
and governments, including their political
to expand their reach. subdivisions, in activities which significantly
FOREIGN INVESTMENTSCAN BE CLASSIFIED IN contribute to national industrialization and
ONE OF TWO WAYS: DIRECT AND INDIRECT socio-economic development to the extent that
foreign investment is allowed in such activity by
TYPES OF FOREIGN INVESTMENTS the Constitution and relevant laws.
 Foreign Direct Investment (FDI) Objectives:
 Foreign Portfolio Investment (FPI)
 Foreign Institutional Investment (FII)  Significantly expand livelihood and
employment opportunities for Filipinos
Foreign Direct Investment (FDI)  Enhance economic value of farm products
Foreign Direct Investment (FDI) is when a  Promote the welfare of Filipino consumers
company owns another company in a different  Expand the scope, quality and volume of
country. FDI is different from when companies exports and their access to foreign markets
simply put their money into assets in another  Transfer relevant technologies in
country – what economists call portfolio agriculture, industry and support services
investment. With FDI, foreign companies are Scope:
directly involved with day-to-day operations in
the other country.  Foreign investment allows countries to
share resources, capital, production
technologies and processes and helps small
business become more competitive

Foreign Portfolio Investment (FPI)

 Companies may choose to invest in other
countries to move labor and share
resources to become more productive and
increase their profit margins by allocating
material and labor resources effectively
 Foreign investment allows countries to
build trade agreements and partnerships
which therefore opens up their domestic
markets to a global scale and increases
economic activity
 The us dollar or usd is the most widely used
international currency and is used to
compare other countries currencies and
trade values
 By sharing resources and production
techniques firms can become more
competitive and more efficient in their
productions
 More jobs become available and more
skilled workers will be needed as more
foreign investment grows in the country
Group 2 – International Relations.  It avoids international conflicts and
ensures international peace – it helps to
What is International Relations?
understand the true importance of
International Relations is the study of collective security and disagreement.
relationship between countries, including the  Educate Values – To educate people in the
roles of states, intergovernmental interest of the very survival of human race.
organizations, international non-governmental  Better World Order – aims at better
organizations, non-governmental organizations understanding of problems of the world.
and multinational corporations. International
Relations as a field of study covers the factors
and processes that affect the interactions Actors of International Relations
among states and non-states actors across
national boundaries. Types of actors – states and non-states actors

The term international relations have been used  A state is composed of a defined territory
by scholars in two different senses, narrow and demarcated by specific boundaries. It is also
broad. composed of an integrated set of
institutions that is capable of making and
 In the narrow sense, it is taken as the study enforcing laws over this population.
of ‘official relations conducted by  A non-state actors share some but not all of
authorized leaders of the state’. These the characteristics of states. It also defines
scholars have tried to exclude relations in an incorporate two or more states in a
between businessmen, scientists, etc. of new entity.
various states from the purview of  Non-states actors can be categorized on:
international relations. (international organizations, multinational
 In the wider or broader sense, the term organizations, non-governmental
international relations include ‘all organization)
intercourse among states and movements
of people, goods, and ideas across national International Organizations – institutions
boundary.’ with formal membership and procedures

Multinational Organizations – are

Importance of International Relations organizations that seek to make a profit by
engaging in foreign production.
 To avoid world wars – The study of IRS
helps us to analyze and aims of the states in Non-Governmental Organization – Broad
the world affairs, the methods adopted for category, not stated and non-profit.
that attainment of these objects and the Includes religions, charities, political and
factors which ultimately lead to their etc.
success or failure.
 To understand defects of nationalism –
Intense of nationalism was one of the major Some other example of non-state actors
causes of 1st world war. International  Transnational interest groups
relations teach that the nations must learn  Religious Movements
the basic factors of mutual trust and good  Ethnic Groups
will in order to stop any possible conflicts.
 Terrorist Organization
 • Providing policy advice and technical
support
Types of Interaction among Actors
• Sharing successful experiences
 Harmony – is when actor’s interests • Increasing institutional and individual
coincide. Independent pursuit of own capacity within countries
interest returns maximum output.
Poverty Reduction
 Coordination – actors are more
interested in choosing the same • Linking poverty programs with
strategy than in choosing any strategy. countries larger goals and policies
 Cooperation – is mutual adjustment of • Ensuring a greater voice for the poor
policy it benefits both actors but not • Foreign investment and ensure the
always equally. poorest of the poor benefit from
 Conflict – result from mutually globalization
incompatible preferences. Not always
violent.
Additional Information:

UNDP also encourages the protection of human

What is UNDP?
rights the empowerment of woman in all of its
The united nations development programme. The UNDP Human Development
program is the united nation’s global Report Office also publishes an annual human
development network. Headquartered in New development report (since 1990) to measures
York city, UNDP advocates for change and and analyze developmental progress. In
connects countries to knowledge, Experience, addition to a global report, UNDP publishes
and resources to help people build a better life regional, national, and local Human
for themselves. development reports

UNDP also encourages the protection of

human rights and the empowerment of women
Achievements
in all of its program. The UNDP, human
development report office also publishes an • Between 1990 to 2015 the populations of
annual human development report (since 1990) people living is extreme poverty was cut in
to measure and analyze developmental half
progress. • Child mortality rate was dropped more than
half since 1990
The basic objective of UNDP is to help
• Female representation was extremely
poorer nations to develop their human and
doubled from 2000 to 2015
natural resources more fully. It also aims to
provide expert advice, training, and grant
support to developing countries, with increasing
emphasis on assistance to the least developed
countries.

Function of UNDP

Democratic Governance
GROUP 3 their partners for exporting, importing,
thereby keeping the home country’s
GLOBALIZATION
economy afloat and healthy.
Is the term used to refer to the integration of  Direct Foreign Investment - According to
goods, services, and culture among the nations the United Nations, FDI is defined as
of the world. Globalization is not necessarily a “investment made to acquire lasting
new phenomenon; in many ways, we have been interest in enterprises operating outside of
experiencing globalization since the days of the economy of the investor”. Direct
European colonization. investment in constructing production
facilities, is distinguished from portfolio
HISTORY OF GLOBALIZATION (Thomas investment, which can take the form of
Friedman) short-term capital flows (loans), or long-
 Globalization 1.0 (from 1492 to 1800) - term capital flows (bonds). Since 1980,
Globalization was centered around global flows of foreign direct investment
countries. The world shrank from size Large have more than doubled relative to GDP.
to Medium  Capital Market Flows - In many countries,
 Globalization 2.0 (from 1800 to 2000) - particularly in the developed world,
Interrupted by World War I and II. Growing investors have increasingly diversified their
trade and connections between foreign portfolios to include foreign financial assets,
countries. The world shrank from medium such as international bonds, stocks or
to small mutual funds, and borrowers have
 Globalization 3.0 (from 2000 to the present) increasingly turned to foreign sources of
- Created a “flat-world platform” that allows funds. Capital market flows also include
small groups and even individuals to go remittances from migration, which typically
global. The world has shrunk from size flow from industrialized to less
“small” to size “tiny.” industrialized countries.
 Migration (movement of labour) -
ECONOMIC GLOBALIZATION Migration can benefit developing
Economic globalization refers to the mobility of economies when migrants who acquired
people, capital, technology, goods and services education and know-how abroad return
internationally. It is also about how integrated home to establish new enterprises.
countries are in the global economy. Over the However, migration can also hurt the
past two to three decades, under the economy through “brain drain”, the loss of
framework of General Agreement on Tariffs and skilled workers who are essential for
Trade (GATT) and World Trade Organization, economic growth. Whether it is physicians
economic globalization has been expanding at a who emigrate from India and Pakistan to
much faster pace. Great Britain or seasonal farm workers
emigrating from Mexico to the United
ELEMENTS OF ECONOMIC GLOBALIZATION States, labor is increasingly mobile.
 Diffusion of Technology - Innovations in
 International Trade - The importance of
telecommunications, information
International trade lies at the root of a
technology, and computing have lowered
country’s economy. In the constant
communication costs and facilitated the
changing business market, countries are
cross-border flow of ideas, including
now more interdependent than ever on
technical knowledge as well as more
 fundamental concepts such as democracy
and free markets. As a result, for less
NEGATIVE EFFECT OF ECONOMIC
industrialized countries this means it is
GLOBALIZATION
more difficult to advance their businesses
without the technical system and  Domestic producers of the export country -
knowledge in place such as the Internet, returning to the case of US producers:
data tracking, and technical resources currently their market is protected by trade
already existing in many industrialized limitations – quotas and a tariff that make
countries. some foreign products seem more
expensive. The argument for protectionist
POSITIVE EFFECT OF ECONOMIC
policies favours domestic employment and
GLOBALIZATION
often includes some intangible national
 Beneficiaries of economic growth - pride associated with the production of
globalization offers increased business goods.
opportunities for both developed and  Capital flight/tax havens - financial
developing countries. Developed countries, institutes are also becoming
by having access to foreign markets, can sell interconnected. The movement of money is
their products to a different market. no longer subject to restrictions, which
 Multinational organizations (MNOS) - often certainly increases global business
seen as the drivers of globalization, are opportunities but at the same time, makes
beneficiaries but also facilitators of domestic economies more vulnerable.
economic globalization. Their role is also  Increases in economic imbalances - It has
highly controversial, but as 80 per cent of been widely cited that Western enterprises
international trade is connected to at least abuse developing countries and are only
one MNO, it is evident that they are driven interested in making a profit or finding a
by profit. Their responsibility must be cheaper means of production, investing
investigated further – as being the largest only a small fraction of profit back into the
players in international trade, there have country where they are established.
been several attempts to create more social
NATIONAL ECONOMIC DEVELOPMENT
justice.
AUTHORITY
 Access to new markets - the positive
impact of new markets was partly National Economic and Development
elaborated on in previous sections. (NEDA) is an independent cabinet-level agency
Theoretically, access to new markets is of the Philippine government responsible for
mutually beneficial – as trade is voluntary, economic development and planning.
when people buy products, both seller and
consumer are better of once the deal is As the central planning body of the
conducted. government, the NEDA is the responsible for
 End users of a product - globalization the formulation and updating of long and short-
increases possible consumer choices to term national development plans as well as for
almost an infinite number – in consumerist the identification and coordination of economic
societies, the demand for cheaper products policies and measures that will bring about the
is so incisive that in intense competition, optimal use of scares resources, thus affording
even cents would count. maximum development in the Philippines.
HISTORY OF NATIONAL ECONOMIC development projects requiring the
DEVELOPMENT AUTHORITY utilization of funds available to the
government.
 Presidential Decree No. 1 – issued on
5. Coordinate the implementation of
September 24, 1972, otherwise known as
approved national and regional
the Integrated Reorganization Plan (IRP),
development plans and programs.
was the provision for an integrated
6. Coordinate and integrate foreign economic
organizational complex for development
and technical assistance programs from
planning program implementation to
United Nations economic agencies,
correct the deficiencies of the system.
international and economic organizations,
 P.D 107 – as promulgated, dated January foreign government and private
24, 1973, creating the NEDA as mandated in
organizations dealing with the government
the 1973 Constitution. Dr. Gerardo Sicat and its agencies and instrumentalities.
served as the first director general when
7. Establish and maintain working
NEDA was established in 1973. relationships with the various international
 Executive Order No. 5 – was issued by Pres. financial institutions and assist government
Corazon Aquino on March 12, 1986, and private entities in tapping foreign
directing a government-wide reorganization resources for credit or other forms of
to promote economy, deficiency and assistance.
effectiveness in the delivery of public 8. Establish priorities and programs in the
services. utilization of public funds, manpower,
 Executive Order No. 230 – was issued on equipment and other available resources.
July 22, 1987, reorganizing the NEDA. 9. Review and recommend to the President
Implementation of this EO was completed for approval the Investment Priority Plan,
on Feb. 16, 1988 when the NEDA Export Priorities Plan and Public Utilities
commenced operations under its prepared by the Board of Investment.
reorganized setup. 10. Coordinate statistical activities of all
FUNCTIONS OF NATOIONAL DEVELOPMENT agencies, formulate statistical standards
AUTHORITY and methodology, and prescribe their use
by the government agencies.
1. Advise the President on matters concerning 11. Provide general policies for the operations
the status and progress of the economy. of the agencies attached to and under
2. Formulate, in consultation with the private administrative supervision of NEDA.
sector and other appropriate government
agencies, definite inconsistent long range
and annual economic social development
plans and programs.
3. Coordinate the formulation and
implementation of national policies on
fiscal, budgetary, credit, tariff, investment,
production, price, manpower, trade
population, land use, water resources use,
and other economic matters.
4. Analyze, coordinate and initiate, with the
approval of the President, major
GROUP 4 multiple sources from a growing
range of sectors and markets.
TOPIC: ECONOMIC DIVERSIFICATION
 According to World Trade
LEARNING OBJECTIVES Organization, economic
diversification is inextricably linked
These are the knowledge you can
with the structural transformation of
acquire after listening the lecture about
their economies and the
Economic Diversification:
achievement of higher levels of
• Able to identify what is productivity resulting from the
diversification, why it is important movement of economic resources
and what is its connection in the within and between economic
economy, sectors.
• The WTO or World Trade
WHAT IS DIVERSIFICATION STRATEGY?
Organization and what is its relation
in Economic Diversification, • A diversification strategy is the
• And ILO, International Labor strategy that an organization adopts
Organization. for the development of its business.
This strategy involves widening the
WHAT IS DIVERSIFICATION?
scope of the organization across
- In the definition from dictionary, it is different products and market
the action of diversifying something sectors. Diversification strategy is a
or the fact of becoming more form of growth strategy which helps
diverse. the organizational business to grow.
- It is the process of a business
enlarging or varying its range of
IMPORTANCE OF ECONOMIC
products or field of operation.
DIVERSIFICATION
• Synonyms for Diverse: very
different, various, marked • Diversification helps to manage
contrast. volatility and provide a more stable
- In business, diversification is a path for equitable growth and
growth strategy that involves development. Successful
entering into a new market or diversification is all the more
industry - one that your business important now in the wake of
doesn't currently operate in - while slowing global growth and the
also creating a new product for that imperative in many developing
new market. countries to increase the number
and quality of jobs.
ECONOMIC DIVERSIFICATION
IS DIVERSIFICATION NEEDED?
 Economic diversification is the
process of shifting an economy away • Diversification is a technique that
from a single income source toward reduces risk by allocating
 investments among various financial WHY DO COMPANIES DIVERSIFY?
instruments, industries, and other
• For growth in business operations.
categories. It aims to maximize
• To ensure maximum utilization of
return by investing in different areas
the existing resources and
that should each react differently to
capabilities.
changes in market conditions.
• To escape from unattractive industry
WHY ECONOMIC DIVERSIFICATION environments.
MATTERS?
Economic diversification is a key ADVANTAGES OF DIVERSIFICATION
element of economic development in which
The following are the advantages of
a country moves to a more diverse
diversification:
production and trade structure. A lack of
economic diversification is often associated • As the economy changes, the
with increased vulnerability to external. spending patterns of the people
change. Diversification into a
• Shocks that can undermine
number of industries or product
prospects for longer-term economic
line can help create a balance for
growth. The world’s poorest
the entity during these ups and
countries, many of which are often
downs.
small or geographically remote,
• There will always be unpleasant
landlocked and/or heavily
surprises within a single
dependent on primary agriculture or
investment. Being diversified can
minerals, tend to have the most
help in balancing such surprises.
concentrated economic structures.
• Diversification helps to maximize
This creates challenges in terms of
the use of potentially
exposure to sector-specific shocks,
underutilized resources.
such as weather-related events in
• Certain industries may fall down
agriculture or sudden price shocks
for a specific time frame owing
for minerals.
to economic factors.
WHAT IS AN EXAMPLE OF Diversification provides
DIVERSIFICATION? movement away from activities
which may be declining.
• For example, an auto company may
diversify by adding a new car model DISADVANTAGES OF DIVERSIFICATION
or by expanding into a related
The following are the disadvantages of
market like trucks. Another strategy
diversification:
is conglomerate diversification. If a
company is expanding into • Entities entirely involved in
industries that are unrelated to its profit-making segments will
current business, then it's engaging enjoy profit maximization.
in conglomerate diversification. However, a diversified entity will
 lose out due to having limited Chile's export basket — and these go to just
investment in the specific 80 countries.
segment. Therefore,
Economic diversity or economic
diversification limits the growth
diversification refers to variations in the
opportunities for an entity.
economic status or the use of a broad range
• Diversifying into a new market
of economic activities in a region or
segment will demand new skill
country. Diversification is used as a strategy
sets. Lack of expertise in the new
to encourage positive economic growth and
field can prove to be a setback
development.
for the entity.
• A mismanaged diversification or THE INCENTIVE FRAMEWORK FOR
excessive ambition can lead to a DIVERSIFICATION
company over expanding into
• The World Bank Group’s experience in
too many new directions at the
advising governments on economic
same time. In such a case, all old
diversification suggests that there are
and new sectors of the entity will
three key areas of economic incentives
suffer due to insufficient
that intersect to affect the framework
resources and lack of attention.
for diversification. These are: I) business
• A widely diversified company will
regulation and investment policy; ii)
not be able to respond quickly to
trade policy design; and iii) competition
market changes. The focus on
policy.
the operations will be limited,
• Business regulation and investment
thereby limiting the innovation
policy
within the entity.
 All form an essential part of the
DIVERSIFICATION EXAMPLE ON BUSINESS incentive framework to encourage
VIEW investment in new activities. In
environments with a poor
Companies sometimes diversify
investment climate, the lack of
their business activities to manage risk or
competitive domestic suppliers,
expand into new markets. In this lesson,
combined with inefficiencies in
you'll learn about business diversification,
factor markets and institutional
different diversification strategies, and be
capacity constraints, hinder
provided some examples. A short quiz
diversification. There are three main
follows.
ways in which business regulation
Chile is an example of a diversified and the investment climate
economy, exporting more than 2,800 condition the incentives towards
distinct products to more than 120 different diversification:
countries. Zambia, a country similarly o By reducing the costs of investing in
endowed with copper resources, exports new activities and by improving the
just over 700 products — one-fourth of efficiency by which resources move
from declining firms and sectors
 towards more dynamic firms and
sectors.
o By affecting day-to-day business
operations and investment
decisions.
o By proving a predictable and
transparent business environment,
reducing the risks associated with
testing new products and markets.
• Trade policy
 The nature and structure of
protection in overseas markets
shape the opportunities for export
diversification in developing
countries. This is especially so if
overseas protection is biased
towards products in which a country
enjoys a comparative advantage
• Competition policy
 Competition policy plays an
important role in the expansion of
an efficient and diverse private
sector and goes beyond
implementing a legal framework for
addressing dominant positions,
collusion, unfair competition, and
antitrust investigations to cover
legal enforcement, competition
advocacy and institutional
effectiveness.
 Competition policy can also support
“disruptive innovation”, for example
in service industries based on
mobile technologies. Competition
policy can enhance the impact of
innovation programs on economic
diversification.
 human and labor rights. It is the United
Nations agency where governments,
employers and workers have, through a
tripartite structure, equal voice in
improving conditions and life at work.
IMPORTANCE OF ILO IN PHILIPPINES
ECONOMY
• The ILO supports the Philippines in
Group 4 achieving its goal of sustainable and
inclusive growth through decent work.
TOPIC: ILO and WTO
In conflict and disaster, the ILO
INTERNATIONAL LABOR ORGANIZATION responds through emergency
(ILO) employment, decent work and
sustainable livelihood. The ILO also
• Is a United Nations agency whose promotes peacebuilding, employment
mandate is to advance social and and local economic development.
economic justice through setting
international labor standards. WHAT IS WTO AND ITS PURPOSE?
• Agency for the world of work. Devoted
In brief, the World Trade Organization
to advancing social justice, it promotes a
(WTO) is the only international organization
Decent Work Agenda based on four
dealing with the global rules of trade. Its
strategic pillars: rights at work, decent
main function is to ensure that trade flows
employment opportunities, social
as smoothly, predictably and freely as
protection and social dialogue.
possible.
THE MAIN AIMS OF THE ILO
IS THE WTO SUCCESSFUL?
• To promote rights at work, encourage
• The WTO has been so successful that
decent employment opportunities,
numerous groups have petitioned to
enhance social protection and
use the WTO to enforce a range of
strengthen dialogue on work-related
nontrade rules affecting labor, the
issues. Its unique tripartite structure
environment, and competition policy.
gives an equal voice to workers,
The WTO is the world's only
employers and governments to ensure
international organization that
that the views of the social partners are
supervises 95% of the world's global
closely reflected in labor standards and
trade.
in shaping policies and programmers.
WHAT WOULD HAPPEN IF THERE WAS NO
ILO IN PHILIPPINES
WTO?
• The ILO strives with partners to achieve
• In short, world trade without the WTO
decent work for all. It promotes social
would be a very bad outcome for the
justice and internationally recognized
 world economy as a whole, even if the • The organization provides a platform
effect will be disparate across countries that allows member governments to
and sectors. Things could get worse still negotiate and resolve trade issues
when the business cycle deteriorates, with other members. The WTO's
leading to the seventh prediction. main focus is to provide open lines
of communication concerning trade
WHAT IS THE MAIN DIFFERENCE BETWEEN
between its members. For example,
GATT AND WTO?
the WTO has lowered trade barriers
• General Agreement on Tariffs and Trade and increased trade among member
(GATT) covers international trade in countries.
goods. The workings of the GATT
ADVANTAGES OF PROMOTING FREE TRADE
agreement are the responsibility of the
Council for Trade in Goods (Goods 1.) Lower prices for consumers. Removing
Council) which is made up of tariffs enables us to buy cheaper imports.
representatives from all WTO member
2.) Free trade encourages greater
countries.
competitiveness. Through free trade, firms
• GATT refers to an international
face a higher incentive to cut costs. For
multilateral treaty to promote
example, a domestic monopoly may now
international trade and remove cross-
face competition from foreign firms.
country trade barriers. On the contrary,
WTO is a global body, which superseded 3.) The law of comparative advantage states
GATT and deals with the rules of that free trade will enable an increase in
international trade between member economic welfare. This is because countries
nations. can specialize in producing goods where
they have a lower opportunity cost.
THE GATT/WTO MAY AFFECT THE
PHILIPPINE ECONOMY IN THREE WAYS: 4.) Economies of scale. By encouraging free
trade, firms can specialize and produce a
1.) Through changes in tariff structure
higher quantity. This enables more
resulting from the country’s commitment in
economies of scale, this is important for
the Uruguay Round.
industries with high fixed costs, such as car
2.) Through the expansion of world trade as and airplane manufacture. In new trade
developed and less developed countries theory, it is this specialization and
adjust their protection structures. exploitation of economies of scale that is
most important factor in improving
3.) Through the changes in the prices of
economic welfare.
tradable goods as both DCs and LDCs
realign their trade and nontrade barriers. DISADVANTAGES OF WTO
WHAT ARE THE EFFECTS OF THE WORLD 1) However, the WTO has often been
TRADE ORGANIZATION? criticized for trade rules which are
still unfavorable towards developing
countries. Many developed
 countries went through a period of saving drugs, it has raised the price
tariff protection; this enabled them and made it less affordable for
to protect new, emerging domestic developing countries.
industries. Ha Joon Chang argues 7) WTO has rules which favor
WTO trade rules are like 'pulling multinationals. For example, 'most
away the ladder they used favored nation' principle means
themselves to climb up' (Kicking countries should trade without
away the ladder at Amazon) discrimination. This has advantages
2) Free trade may prevent developing but can mean developing countries
economies develop their infant cannot give preference to local
industries. For example, if a contractors but may have to choose
developing economy was trying to foreign multinationals - whatever
diversify their economy to develop a their history in repatriation of profit,
new manufacturing industry, they investment in area.
may be unable to do it without
QUESTIONS FROM REPORTERS
some tariffs protection.
3) WTO is being overshadowed by new These questions were made to be
TIPP trade deals. These deals are able to identify if the learning objectives of
negotiated away from WTO and the reporters are reached.
focuses mainly on US and EU. It
• Why economic diversification is
excludes China, Russia, India, Brazil
important in business?
and South Africa. It threatens to
• Does diversification strategy have
diminish the global importance of
significance? How?
WTO.
• Give at least one reason why
4) Difficulty of making progress. WTO
companies diversify.
trade deals have been quite difficult
• What are the three incentive
to form consensus. Various rounds
frameworks for diversification?
have taken many years to slowly
• Why diversification matters in
progress. It results in countries
economy?
seeking alternatives such as TIPP or
• What is the main function of ILO?
local bilateral deals.
• Why ILO is important in Philippines?
5) WTO trade deals still encompass a
• What is WTO and what is its
lot of protectionism in areas like
purpose?
agriculture. Protectionist tariffs
• Why WTO is a successful
which primarily benefit richer
organization?
nations, such as the EU and US.
• What is GATT?
6) WTO has implemented strong
• Give at least one of each category
defense of TRIPs ‘Trade Related
and explain in your own perspective;
Intellectual Property’ rights. These
 Advantage of Economic
allow firms to implement patents
Diversification
and copyrights. In areas, such as life-
 Disadvantage of Economic
Diversification
 Advantage of WTO
 Disadvantage of WTO