Bernardo, Teddy P.

ZEC 111 – 2EC

20131122208 Prof. Emilie Cruz

Effect of Globalization in Philippine Economy

Financial and industrial globalization is increasing substantially and is creating new

opportunities for both industrialized and developing countries. The largest impact has been on
developing countries, who now are able to attract foreign investors and foreign capital. This has
led to both positive and negative effects for those countries.

Globalization is a process of global economic, political and cultural integration. It has made
the world become a small village; the borders have been broken down between countries.

The Philippines is one of the developing countries in Asia that has been greatly influenced
by globalization. The country is taking part in the process of globalization ever since the country
signed agreements with WTO (World Trade Organization) in 1995. Since then, the nation had
hope for WTO to bring developments within the nation’s poor economy and also to have a role
within the global economy and trade. Now, globalization is very effective in the Philippines, it has
allowed major changes in the nation like more labor, and more Filipino and foreign companies has
emerged in the nation in order to help the country’s developing economy.

The country had high levels of education and English literacy due to the influence of
Americans, decent savings rates, and an export-oriented agricultural sector that generated more
than sufficient foreign exchange. The industrial sector was growing rapidly, and the country had
one of the highest per capita incomes in Southeast Asia

The Philippines is a country of ups and downs of conspicuous consumption of devastating

poverty, hunger and suffering. The economy is basically agricultural, with rice, corn, and kamote
(sweet potatoes) the staple food crops. Key cash crops include coconuts, fruits and vegetables,
sugar, tobacco, and abaca (the famous "Manila hemp" used for rope making). In aggregate, about
two-thirds of Filipinos continue to depend on the agricultural sector. The Philippines is rich in
natural resources, as reflected in the fact that foreign exchange earnings have derived largely from
export of primary commodities. The export of fruits and vegetables, especially pineapple products
and bananas, plays a key economic role every year

Among the minerals that the Philippines produces are copper, gold, nickel, chromium, iron,
and manganese. Mining will continue to be important in the future, particularly copper, nickel,
chromite, and iron. It is estimated that 90% of the country's mineral resources are unsurveyed and
undeveloped. However, the costs are high according to the international standards and many gold
mines and other operations are not economically at its best. The Philippines global economy
remains in transition and the nation has been living through a period of increasing volatility.
Globalization, whether individuals favor it or not, is taking place at a rapid pace, integrating more
and more of the nation’s and world economy. Philippines have four regions that globalization has
targeted and these four are: liberalization, mobility of capital, technology, and management of
organization through private and public sectors.

There are many things that globalization that brought quick changes into the Philippine
society. With its vast development it has brought about technologies mostly computers and
software and also telecom companies are being introduced into the market. Thanks to
globalization, such technologies were influenced by Philippines neighboring Asian countries like
Malaysia and China, and even Japan. Thanks to globalization, it has opened its economy to foreign
trade and investment. Furthermore, globalization has allowed Filipino workers to travel the world,
but most head for the Middle East, East Asia, the US and Canada and Europe due to better
economies and better money. Filipinos working overseas numbered more than three million -
about 10 percent of the labor force. The total number of overseas Filipinos may be as high as eight
million, according to the government.