means that there will be no restriction on foreign ownership for industrial undertakings not classified as public utilities. However, to protect national security, SB 2094 contains safeguards that limit foreign ownership in public services classified as critical infrastructure. Critical infrastructure is defined as systems and assets that are so vital, they would have a debilitating impact on national security if they were destroyed or incapacitated. The Philippine government hopes this will spur local industries to attract more investment and know-how for the improvement of public infrastructure. The Philippine economy is among the most negatively impacted in ASEAN, with GDP decreasing 9.5 percent in 2020 and national debt rising to PHP 10.3 trillion (US$201 billion). Liberalizing the economy will enable the Philippines to attain similar traction in foreign investment as received by other ASEAN nations. Out of the US$137 billion in foreign direct investment received by ASEAN in 2020, only US$6.5 billion went to the Philippines. Further, the Philippines may face a long road to recovery than its ASEAN neighbors. It imposed harsher and longer-lasting lockdowns and stimulus packages issued by the government have been more conservative compared to other ASEAN members (2022, Medina). Manufacturing and Wholesaling are also very important in Marketing and Finance. The theory of comparative advantage, imperfect market theory, and the product cycle theory are the three key economic theories that underlie the foundation of financial control of foreign operations. MNCs choose the countries to expand manufacturing business operations where they can find advantage in the cost of basic labor particularly the countries of China, South Korea, Taiwan, and the Philippines. The lower cost of labor from these countries cannot be transported so MNCs set up manufacturing facilities in these countries to take advantage of the countries’ comparative advantage and their specialized knowledge to produce manufactured products to be sold and distributed in the global markets. Imperfect market theory happens when various
ci
Powered by FlippingBook