International commerce has been crucial to the Philippines' economic change, helping to draw in foreign investment, spur export growth, boost the services industry, and support infrastructure growth. As a result of the nation's acceptance of international markets, both enterprises and individuals now have new opportunities, which has led to more prosperity and a higher standard of living for many Filipinos. The Philippines is in a good position to take advantage of the opportunities and advantages that come with global commerce as it pursues further economic integration.
Foreign Direct Investment (FDI)
The influx of foreign direct investment (FDI) has been one of the most notable effects of global commerce on the Philippines. Due to its advantageous position, youthful, educated workforce, and comparatively low operating expenses, the nation has drawn investors from all over the world as it has liberalized its trade regulations and enhanced its business environment.
Example: FDI from global companies like Texas Instruments, Samsung, and Toshiba has helped the electronics industry in the Philippines grow quickly. These businesses have established production facilities in the nation, resulting in the creation of thousands of employment and a thriving and competitive electronics industry.
The expansion of the Philippines' export industry, which has undergone tremendous diversification over the past few decades, has also been fueled by international trade. The nation now exports a wide range of goods, including agricultural goods, machinery, electronics, and minerals.
Example: For illustration, global commerce has substantially benefited the Philippine coconut industry. Filipino coconut growers and manufacturers have discovered new markets for their products as demand for coconut products such as coconut oil and coconut water has increased globally. As a result, many rural villages now earn more money, and a robust coconut processing business has emerged.
Services Sector Expansion
The Philippines' services industry has expanded quickly, and it currently contributes more than half of the nation's GDP. The offshoring and outsourcing of business processes to the Philippines has become increasingly popular among foreign corporations, which has played a significant part in this expansion.
Example: The Philippines' business process outsourcing (BPO) sector has experienced exponential growth as a result of the establishment of operations there by well-known multinational corporations including Accenture, JPMorgan Chase, and IBM. For Filipinos, this has resulted in the creation of hundreds of thousands of well-paying employment, particularly in the financial, technical, and customer service sectors.
The Philippines' efforts to increase its connectedness and competitiveness in international markets have also benefited from increased international commerce. The government has launched a variety of efforts to improve the nation's energy, communications, and transportation networks, frequently with the assistance of foreign partners and investors.
Example: The "Build, Build, Build" program of the Philippines, which was introduced in 2017, is an extensive infrastructure development plan with the goal of modernizing the nation's highways, railroads, airports, and seaports. Significant international funding and support for the program have been received, notably from nations like China and Japan.