Major Effects of Globalization Like Adapting to Changes, Lower Tariffs and Cheaper Labor Cost Make a Difference on Philippine Economy and Firms
A research paper
Presented to
Jose Cristina Pariña, Ph.D.
In partial Fulfillment
Of the Requirements for
ENGLRES
2012-2013
Nikka Jennine L. Escober
Alejandrea A. Lalata
April 1, 2013
Outline
Introduction
Adopting to Changes
A. Technological developments
1. Communication
2. Transportation
B. Internet as an agent of change
1. E-commerce
2. Software
C. Global competition
1. Strategies in boosting the market
III. Lower tariffs for imported goods
A. Free trade
1. Lower support for domestic products
2. Build-up of economic ties
B. Increase foreign investment
1. Dominance of multinational companies
2. Inability of local firms to compete
IV. Cheaper labor cost
A. Increase in job volume
1. Lost of worker rights
2. Environmental destruction
B. Impact of overseas Filipino workers
1. Shielded the Philippines from economic slow down
2. Geological shift in jobs
Globalization is a process by which the economies of the world become more integrated, leading to a global economy and, increasingly, global economic policymaking. It also refers to the increase openness of economies to international trade, financial flows, and direct foreign investment (Smith & Todaro, 2011). Groups of regions such as countries, nations, nation-states and national economies have its own economic, social, political and power build-up. There are variations from country to country as to how their national economic, social, political and administrative system performs (Helvoirt, 2009, p.45).
Paderanga (1996) emphasizes that,
"The globalization of production has been driven by a combination of more openness; liberal trade regimes; greater mobility of factors; and the encompassing infrastructure of telecommunications, transportation and information technology. Globalization is synonymous with a "borderless world." There is also a globalization of consumption taking place as the homogeneous." (pp. 9-10).
Globalization can...