trends and issues-globalization of economy and society

8/11/2019 Trends and Issues-globalization of Economy and Society

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GLOBALIZATION OF ECONOMY AND SOCIETY

Globalization

means uprooting old ways of life and threatening livelihoods and cultures. The global social

justice movement, itself a product of globalization, proposes an alternative path, more

responsive to public needs. Intense political disputes will continue over globalization's

meaning and its future direction.

Globalization of the Economy

Northern countries want to open world markets to their goods and take advantage of abundant, cheap

labor in the South, policies often supported by Southern elites. They use international financial

institutions and regional trade agreements to compel poor countries to "integrate" by reducing tariffs,

privatizing state enterprises, and relaxing environmental and labor standards. The results have enlarged

profits for investors but offered pittances to laborers, provoking a strong backlash from civil society. This

page analyzes economic globalization, and examines how it might be resisted or regulated in order to

promote sustainable development.

40thlargest in the world,according to 2012International Monetary Fund statistics

one of theemerging markets in the world.

newly industrialized country,it has been transitioning from one based on agriculture to one

based more on services and manufacturing.

Primary exports include semiconductors and electronic products, transport equipment,

garments, copper products, petroleum products, coconut oil, and fruits. Major trading

partners include theUnited States,Japan,China,Singapore,South Korea,

theNetherlands,Hong Kong,Germany,Taiwan,andThailand.

The Philippines has been named as one of theTiger Cub Economies together

withIndonesia,Malaysia andThailand

According to theCIA Factbook,the estimated 2012 GDP (purchasing power parity)was 424.355

billion.Goldman Sachs estimates that by the year 2050, the Philippines will be the14

thlargest

economy in the world,Goldman Sachs also included thePhilippines in its list of theNext

Eleven economies. According toHSBC,the Philippine economy will become the 16th largest

economy in the world, 5th largest economy inAsia and the largest economy in theSoutheast

Asian region by 2050.

Primary exports include semiconductors and electronic products, transport equipment,

garments, copper products, petroleum products, coconut oil, and fruits. Major trading partners

include theUnited States,Japan,China,Singapore,South Korea,theNetherlands,Hong

Kong,Germany,Taiwan,andThailand.

The Philippines has been named as one of theTiger Cub Economies together

withIndonesia,Malaysia andThailand

Macroeconomic trends

The Philippine economy has been growing steadily over decades and the International Monetary

Fund in 2011 reported it as the 45th largest economy in the world. However its growth has been

behind that of many of its Asian neighbors, the so-calledAsian Tigers,nor is it a part of
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theGroup of 20 nations. Instead it is often grouped in a second tier ofemerging markets or

ofnewly industrialized countries.Depending upon the analyst, this second tier can go by the

name theNext Eleven or theTiger Cub Economies.

Composition by sector

As anewly industrialized country,the Philippines is still an economy with a large agricultural

sector; however, services have come to dominate the economy.Much of the industrial sector

is based on processing and assembly operations in the manufacturing of electronics and other

high-tech components, usually from foreign multinational corporations.

Filipinos who go aboard to work-known asOverseas Filipino Workers or OFWsare a

significant contributor to the economy but are not reflected in the below sectoral discussion

of the domestic economy. OFW remittances is also credited for the Philippines' recent

economic growth resulting to investment status upgrades from credit ratings agencies such as

theFitch Group andStandard & Poor's.

Agriculture

ThePhilippines is the world's largest producer ofcoconuts producing 19,500,000 tons in 2009.

Coconut production in the Philippines is generally concentrated in medium-sized farms.1995-production of coconut in thePhilippines had experienced a 6.5% annual growth and later

surpassedIndonesia in total output in the world.

2009-The Philippines is also the world's largest producer ofpineapples,producing 2,198 thousand

metric tons

2010-world's largest rice importer

Rice is the most important food crop, a staple food in most of the country. It is produced

extensively inLuzon,theWestern Visayas,SouthernMindanao,and Central Mindanao.

The Philippines is also one of the largest producers of sugar in the world according to Food

and Agriculture Organization of the United Nations Statistics Division

Year 2012-2013-29 mills are operational divided as follows: 6 mills in Luzon, 13 mills in Negros, 4 mills

in Panay, 3 mills in Eastern Visayas and 3 mills in Mindanao

Shipbuilding and repair

The Philippines is a major player in the global shipbuilding industry with shipyards

inSubic,Cebu,General Santos City andBatangas

fourth largestshipbuilding nation in 2010.Subic-made cargo vessels are now exported to

countries where shipping operators are based.

The countrys shipyards are now building ships like bulk carriers, container ships and big

passenger ferries. General Santos' shipyard is mainly for ship repair and maintenance.

In the ship repair sector, the Navotas complex inMetro Manila is expected to accommodate

96 vessels for repair.

Automotive

Automotive sales in the Philippines moved up from 165,056 units in 2011 to over 180,000 in

2012. Japans automotive manufacturing giantMitsubishi Motors has announced that it will

be expanding its operations in the Philippines.

Aerospace

In 2011, the total export output of aerospace products in the Philippines reached US $3 billion.
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TRENDS ON EDUCATED CONSUMERS OF THE PHILIPPINES

Why women consumers really matter?

Women have acquired another power: becoming the world's largest and fastest-growing

market to date.

Just how much do women contribute to the global market? They control $20 trillion of the

consumer spending worldwide. Women have the power of making or influencing 80 percent

of all purchase decisions, including 60 percent of traditional male products like automobiles,

home improvement products, and consumer electronics. Women have emerged to be strong

users of social media as well. They are also great consumers of mobile phones, as they talk

and text more-communicating to their loved ones and valuing their friends' advice through

mobile and online devices.

The Great Female Economic Opportunity

The High Heeled Warriors study identified five unique groups of women consumers, namely:

-Trailblazers-individualistic, career-focused women who are big on spending and consume a variety ofmedia, including entertainment on multiple platforms

-Passionistas-''spontaneous'' ones who want to ''live for the moment.'' Women who treat TV as a

social activity and tend to have the most number of friends on Facebook are called the social-siders

-peace-keepers- balance and are very loyal consumers that stick to their favorite brands and TV

shows.

-heart-warmers -family-oriented women who take pride and spend for their family.

The Emerging Asian Women

Majority of these women audiences have gotten more educated, powerful and ambitious over

the last couple of years.

ASEAN region has the highest proportion of women in senior management roles in the world-

32 percent against the global average of 21 percent.

Thirty-one percent of women in Asia are chief income earners, with a purchase of over 60

percent on traditionally male products.

In the Philippines, 600 respondents were surveyed for the study, with 66 percent of them

residing in Mega Manila. Fellowes found Filipinas very unique. ''The predominance of the

passionista is very telling-women here are assertive, ambitious, educated and determined, but

unlike the trailblazers, here they want to live life to the fullest, they are creative, they're

optimistic and you don't find the two together''

Education-wise, there are more Filipinas who are college graduates, with 55 percent finishing

school, and 64 holding licensed professions. Filipinas are more functionally literate as well,

with an 89 percent literacy rate as opposed to the men's 87. On basic money management,

Filipinas scored nine percent higher than the Filipino men. Half of the OFWs are women. In the

2010 elections, there were 76 percent of women who voted compared to 74 percent men.

Filipinas are also making decisions for themselves and their loved ones.


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Unfortunately though, women consumers have yet to feel they are indeed an important

market. According to Henry Robles, NBCUniversal research director for audience research and

analysis, despite a woman's strong buying power, companies still continue to market mostly

to men. ''They fail to explore this great female economic opportunity,'' he says.

Robles adds that advertisers should listen to the needs of this critical demographic. They

found out that women don't feel engaged by today's ad campaigns

Across the Asian region, 74 percent of those surveyed believe that financial independence is

very important. In the Philippines, it's bigger at 87 percent.

ISSUES ON EDUCATED CONSUMERS OF THE PHILIPPINES

Companies today have found easier ways to interact with customers, becoming more adept

when it comes to knowing consumers' needs, preferences and even social profiles. This ability

to engage allows business entities to improve customer loyalty, eventually translating to sales

and customer satisfaction.

There is no doubt that the Internet and social media have greatly influenced customer

behavior.

In a study that Nottle cited during a media briefing, he shares that four out of five customerschange their purchasing decision based on what they see in social media.

''We have seen the changes over the last 10 years. Customers now are all about behavior.

They are now more educated and it's because of I.T.,'' he says, adding that I.T. is enabling

business to cut across from sales to customer service.

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