Joyce Ann Fontiveros International Political Economy

AB Foreign Service 301 Sir. Jumel G. Estrañero

Foreign Direct Investment in the Philippines

Foreign Direct Investment is becoming a growing global trend undertaken by the companies in
order to expand their business into countries as well as their domestic base. Foreign Direct
Investment played an important role in global business in order to face the changes of economic
environment and it has been an essential source of foreign capital during crisis. According to
IMF, direct investment is mirror to what it refers as lasting interest by direct investor. According
to what I’ve read the foreign direct investor may acquire voting power of an enterprise in an
economy.
Foreign Direct Investment helps a country’s economy by allowing foreign investors to fill the
investment gaps in manufacturing and infrastructure. According to what I’ve read FDI stimulates
competition, capital, technological and managerial skills which has a positive effect on both host
and home country’s economic growth. In terms of capital, the host country will have a higher
financial status than the home country. It shows that the developing countries can benefit from
FDI and achieve economic growth. In overall, The host countries, especially the developing
countries, can benefit from the foreign direct investment. According to IMF report, the
disadvantages of FDI countries should not allow foreign ownership of companies in strategically
important. That could lower the comparative advantage of the nation.
I think its’s Canada because the bilateral relations with the Canada are strong and friendly, and
marked by close cooperation in a variety of areas. And also Canada and Philippines are partners
on the international stage, working to find solutions to global issue. And according to Andre J
Marasigan Philippines was Canada’s top source country for permanent immigration part of the
top three source countries over the last five years and the relationship between Philippines and
Canada according to him is one like old childhood friends they will be there ready and willing to
be a friend with no questions asked that’s why I think it’s Canada.
The major challenges of the Philippines in FDI according to what I’ve read FDI inflow to the
Philippines remains relatively weak. Partially explained by the fact that our country is evolving
into a service society with low capital strength, which means that it need only minimal
equipment. The Philippine government needed to lead the nation out of the negative economic
growth and political instability. Philippines has the ingredients for growth, but the progress is
unsteady.
To improve the FDI need to work a lot harder for the economy to attract foreign investment and
maintain global competitiveness. And need to improve the services. They need to be responsible
for the increasing concentration in the developing countries and engaging activities with
intention to attract more and more flows of foreign direct investment.

References: https://www.investopedia.com/terms/f/fdi.asp
http://bworldonline.com/canada-philippines-old-childhood-friend/