REYNALDO ROSS D. SUCGANG IV INVESTMENT LAW2013-0644 ATTY. REYES

Assignment No. 1

1) Why are foreign direct investments (FDI) important to any country? What reasons does the article blame for the fact that the Philippines in lagging behind its ASEAN neighbors in terms of FDI? Do you agree? Why or why not?

2) Do you agree that FDIs are good for the economy? Why or why not?

3) What should our government do to attract more foreign investors?

1. FDI is important to any country because it can provide long term growth, increased employment, sources of capital, and global standards of governance, increased competition, and technology transfer. It may increase Philippine economy, stellar growth compared to its neighbors.

According to the article, the Philippines is lagging behind its ASEAN neighbors in terms of FDI because Philippines has emerged anew among top FDI destinations in East Asia. According to the margin given in the article, I would agree that Philippines is in the bottom of the FDI countries but the margin is still equally competitive.

2. I agree with the author the FDI is good for the economy. With the presence of foreign investors, there will be an increase in economy development, increase in the share of FDI or relative products and the economy will be financially stable. Albeit, FDI will generate a positive effect on economic growth.

3. The government should take measures to attract more foreign investors such as political stability, sentiments to the people’s needs, improve tariff rates, demographic, macro fundamentals, currency risk, and market performance. In improving the qualitative and quantitative measures of the government. The Philippine government need to focus on midterm strategies towards improving FDI by taking measures such as restrictiveness, improving the ease of doing business, expanding PPP and other critical infrastructure programs, and working with ASEAN and global trading partners to increase cross border flows and investments.