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Socio-Economic Impact Analysis Guide

Here are 5 point explanations for each question: 1. Supply of commodities, observing the different possibilities of influencing prices and foreign exchange balances. 1) Increased production can reduce supply shortage and lower prices. 2) In overcrowded industries, it can improve quality and lower prices through competition. 3) It stimulates production of raw materials through linkages in the industry. 4) Lower prices benefit consumers. 5) Increased exports can improve foreign exchange balances. 2. Employment and income, resulting in the improvement in the standards of living of its employees and their families. 1) The project generates jobs and income for employees. 2) Higher incomes improve living standards for employees and their families.

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57 views2 pages

Socio-Economic Impact Analysis Guide

Here are 5 point explanations for each question: 1. Supply of commodities, observing the different possibilities of influencing prices and foreign exchange balances. 1) Increased production can reduce supply shortage and lower prices. 2) In overcrowded industries, it can improve quality and lower prices through competition. 3) It stimulates production of raw materials through linkages in the industry. 4) Lower prices benefit consumers. 5) Increased exports can improve foreign exchange balances. 2. Employment and income, resulting in the improvement in the standards of living of its employees and their families. 1) The project generates jobs and income for employees. 2) Higher incomes improve living standards for employees and their families.

Uploaded by

Maricar Gadoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Socio-Economic Study

A PROJECT, to be worthy of financing especially from government institutions, should be geared towards generating not
only revenues and profits but also social and economic benefits to various stakeholders. This portion of the study will
serve as an aid in determining the socio-economic contributions of a project.

Figure 8 shows how a project can contribute to improve the standard of living, enhance community development,
increase both foreign exchange savings and reserves, aid in the lowering of prices, and increase the demand for local
materials.

The socio-economic evaluation of the study will, therefore, briefly explain the impact of the project in terms of the
following:

1. Employment and income, resulting in the improvement in the standards of living of its employees and their
families.
2. Taxes since the increased revenues of the local and national governments can then be used for the
development of the community.
3. Supply of commodities, observing the different possibilities of influencing prices and foreign exchange
balances.
4. Demand for materials by specifying the use of home-grown materials to allow local producers to sell more
goods

By generating employment and income, the project directly benefits its employees and their families. Indirectly, the
local economy as well as the larger national economy may be benefited. More income in the hands of the people would
mean greater demand for other goods. This additional demand may, in turn, stimulate the production of more goods,
thereby generating further employment and income for other members of the community.

The production activity of the project favorably affects the supply situation of the industry in various ways. Where there
are few sellers of a particular product or service, the project’s entry reduces the supply shortage, resulting in lowered
prices.

In an overcrowded industry on the other hand, the project may result in improved product quality and/or decreased
prices, especially if it is highly competitive in quality and pricing upon its production.

At the same time, the production activity creates additional demand for raw materials and other industrial inputs. This
stimulates the production of more raw materials and supplies, thereby promoting linkages within the industry.

In generating employment and income and increasing production activity, the government stands to benefit through
more revenues from taxes.
Worksheet: Comprehension Questions
Briefly explain each of the following question in 5 points each:
In Socio- Economic evaluation of the study, briefly explain the impact of the following:
1. Supply of commodities, observing the different possibilities of influencing prices and foreign exchange
balances.

2. Employment and income, resulting in the improvement in the standards of living of its employees and their
families.

3. Supply of commodities, observing the different possibilities of influencing prices and foreign exchange
balances

4. Demand for materials by specifying the use of home-grown materials to allow local producers to sell more
goods

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