2008 MPI Now Available
The 2008 edition of the Market Potential Indicators (MPI) has recently been released. The index, which has been published annually by MSU-CIBER since 1996, uses a number of market growth dimensions to determine the attractiveness of emerging markets. The factors include market size, market growth rate, market intensity, market consumption capacity, commercial infrastructure, economic freedom, market receptivity, and country risk. These dimensions include a battery of indicators, each weighted based on their importance to establishing an overall market potential in emerging markets. Our Featured Country for this month, the Philippines, is ranked 18th on the overall index.
Learn more about MPI on globalEDGE
Once a colony of the mighty Spanish Empire and later the United States, the Philippines gained its independence in 1946. While nationhood brought with it rapid economic expansion, this gradually slowed and the country fell into a recession between 1984 and 1985. Fortunately, numerous economic reforms during the 1990s brought growth and foreign investment back to the Philippines. The country was also one of the few that were less affected by the Asian Financial Crisis of 1997, protected by high overseas remittances, and moderate debt.
Today, the Filipino economy is characterized by gradual growth. A 5.4% increase in GDP in 2006 highlighted the first time since the 1970s that growth exceeded 5% for three consecutive years. This progress can be attributed to the country's agricultural sector, as well as a few other important industries - specifically food processing, textiles, electronics, and auto-parts. Mining has also gained recent prominence in the country, owing to its high natural gas and mineral reserves. Additionally, its increasing attractiveness as an outsourcing destination will likely augment a strong service sector that has historically been dependent on the large number of foreign-based Filipino hospital and domestic aids. It is hopeful that these, and further economic reforms, will help fuel sustainable growth for the Philippines.
Learn more about The Philippines on globalEDGE Country Insights.
This month's poll question is:
"Which of the following issues is most important in assuring that the Philippines achieves similar levels of economic growth as its neighboring Asian countries?"
Please click a choice below to vote. You can also vote at our home page.
GDP Increase Seen From RP-Japan Accord
The Manila Times (March 8, 2008)
http://www.manilatimes.net/national/2008/mar/08/yehey/metro/20080308met6.html
A Japan-Philippine Economic Partnership Agreement is being pushed through the Philippines Senate as the Trade Union Congress of the Philippines believes the country has much to gain from the deal. Many believe that lower tariffs would stimulate investment and reduce unemployment.
Philippines Seeks to Become Back Office Superpower by 2010
AFP (February 26, 2008)
http://afp.google.com/article/ALeqM5jFHRX01WaJ43BNH-FGrfxwJKmuNg
Back office operations in the Philippines have been experiencing growth in excess of 40% for each of the past three years. Now industry leaders say they want to capture 10% of the world market and employ over one million people by 2010.
Philippines Asks Vietnam to Guarantee Rice Supply
Inquirer.net (February 22, 2008)
http://newsinfo.inquirer.net/breakingnews/nation/view/20080222-120428/Philippines-asks-Vietnam-to-guarantee-rice-supply
With tight world supplies, Philippines President Gloria Macapagal-Arroyo has asked Vietnamese Prime Minister Nguyen Tan Dung to ensure a certain amount of rice supply to her country. The Philippines is the world's largest importer of rice and worries that high prices will encourage exporters to stockpile the grain.
View more News on globalEDGE.
Global Sugar Trade
Globalization101.org (February 7, 2008)
http://www.globalization101.org/index.php?file=news1&id=105
Sugar is one of the most regulated and subsidized agricultural products. Globalization101 takes a look at the current state of the industry and what the outlook is for the next couple of years. Reduction in quotas and tariffs are playing a large role in reshaping the industry, as is the increasing popularity of ethanol. Specific analysis is provided for the United States, European Union, Brazil, and Africa.
Mexico Near-Sourcing Grows More Attractive
World Trade Magazine, by Gail Dutton (February 2, 2008)
http://www.worldtrademag.com/Articles/Feature_Article/BNP_GUID_9-5-2006_A_10000000000000249307
For years, U.S. companies have been courting China and India in the hopes of cutting costs and improving efficiency. Many of these companies are now finding that a better solution may lay closer to home. Agreements such as NAFTA as well as Mexico's own domestic efforts have resulted in significant changes to make the country more business-friendly. Massive infrastructure improvement and increased cooperation between Mexico and the U.S. on issues such as customs inspection are just a few of the reasons more companies are looking to "near-sourcing" rather than "out-sourcing".
View more In Depth Look articles on globalEDGE.
Why CAFTA Faces Opposition
By Paulette L. Stenzel (Volume 2, Number 3, pp. 1-2, 2008)
http://globaledge.msu.edu/newsandviews/businessReviews/gBR2-3.pdf
Executive Briefing: CAFTA was signed in 2004 in spite of substantial opposition to it in the Dominican Republic and Central America. Supporters say CAFTA will encourage each member to find and rely on its comparative advantage. However, critics use historical evidence to illustrate that CAFTA's provisions are harmful, both financially and environmentally, to citizens of Central America and the Dominican Republic.
This month's Featured Sites:
Philippines: Business World Online
http://www.bworldonline.com/
This online version of Business World provides business updates for leaders in business, industry, and government, both in the Philippines and abroad. The user can sort news by section as it appears in the print version as well as view the newspaper as a PDF file.
The site also boasts a few different services that are free of charge to companies, such as posting their site on the company directory or posting a corporate bulletin on company events or developments.
Category: News & Periodicals: Regional News
Country: Philippines
Philippines: Department of Trade and Industry
http://www.dti.gov.ph/
The Department of Trade and Industry (DTI) is an agency of the Philippine Government and aims to provide an environment conducive to the growth of enterprises and trade both within and outside the Philippines. The website provides sections on trade with the Philippines, investments, consumer welfare, and SME concerns. The Publications and Laws & Policies sections may prove useful for those interested in regulations on trade in the Philippines.
Category: Research: Organizations
Country: Philippines
World Business Culture
http://www.worldbusinessculture.com/
World Business Culture provides culture-focused country profiles for 35 countries for use in global organizations or in studying international trade. Each profile covers a wide range of topics such as communication styles, dress code, management style and top tips for the particular country. Registration is optional and information can be accessed without.
Category: Reference: Culture
View recently added sites on globalEDGE.
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