To the north of the Philippines across the Luzon Strait lies Taiwan; Vietnam sit

s west across the South China Sea; southwest is the island of Borneo across the
Sulu Sea, and to the south the Celebes Sea separates it from other islands of In
donesia; while to the east it is bounded by the Philippine Sea and the island-na
tion of Palau. Its location on the Pacific Ring of Fire and close to the equator
makes the Philippines prone to earthquakes and typhoons, but also endows it wit
h abunThe coming of Ferdinand Magellan in 1521 marked the beginning of Spanish c
olonization. In 1543, Spanish explorer Ruy Lpez de Villalobos named the archipela
go Las Islas Filipinas in honor of Philip II of Spain. With the arrival of Migue
l Lpez de Legazpi from Mexico City, in 1565; the first Spanish settlement in the
archipelago was established.[14] The Philippines became part of the Spanish Empi
re for more than 300 years. This resulted in the predominant religion in the cou
ntry being Roman Catholicism. During this time, Manila became the western hub of
the trans-Pacific Manila Acapulco galleon trade connecting Asia with the Americas
.[15]
As the 19th century gave way to the 20th, there followed in quick succession the
Philippine Revolution, which spawned the short-lived First Philippine Republic,
and the Philippine American War. Aside from the period of Japanese occupation, th
e United States retained sovereignty over the islands until 1945. After World Wa
r II, the Philippines was recognized as an independent nation. Since then, the P
hilippines often has a tumultuous experience with democracy, which includes the
overthrow of a dictatorship by a nonviolent revolution.[16]
The nation's large population size and economic potential have led it to be clas
sified as a middle power. It is a founding member of the United Nations, World T
rade Organization, Association of Southeast Asian Nations, and East Asia Summit.
The Philippines is considered to be an emerging market and a newly industrializ
ed country,[17] which has been transitioning from being one based on agriculture
to one based more on services and manufacturing.