PHINMA ARAULLO UNIVERSITYSCHOOL NAME

Factor of Growth | Group 3

Princess Femylou B. Mercado, Janina Patricia Mariot,

Cyrine S. Ferrer, Kristine Masilang

Presenter: Mariot, Janina Patricia

Information Capital

Information capital is a concept which asserts that information has intrinsic value which can
be shared and leveraged within and between organizations.

Information capital connotes that sharing information is a means of sharing power.

Information capital is the piece of information which enables the exchange of Knowledge
capital.

Information Capital Markets and Data Protection Act 1988

Information capital markets are commercial markets for the buying and selling of
information and data.

These markets connect data aggregators with organisations and individuals who need
information for business, scientific or any other purposes.

Regulating acts such as Data Protection Act 1998 and Data Protection Directive are
imposed to control information capital markets and prevent inappropriate usage of
personal information by data aggregators or any other individuals and organizations.
Although information has been bought and sold since ancient times, the idea of an
information marketplace is relatively recent.

The Data Protection Act 1998 was an act of Parliament designed to protect personal data
stored on computers or in organised paper filing systems.

CONCLUSION:

In management Information Capital usually described as a set of data which are valuable
for organisation and can be reached through different data storing systems, such as intro
and internet systems, computer databases, libraries, information sharing networks and
many others.

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What Is Capital?

Capital is a broad term that can describe anything that confers value or benefit to its
owner, such as a factory and its machinery, intellectual property like patents, or the
financial assets of a business or an individual.

While money itself may be construed as capital is, capital is more often associated with
cash that is being put to work for productive or investment purposes.

What Are the 3 Sources of Capital?

• Working capital is the money needed to meet the day-to-day operation of the
business and pay its obligations in a timely manner.
• Equity capital is raised by issuing shares in the company, publicly or privately, and is
used to fund the expansion of the business.
• Debt capital is borrowed money. On the balance sheet, the amount borrowed
appears as a capital asset while the amount owed appears as a liability.

What is the Role of Capital in Economic Development?

Capital is helpful in raising per capita productivity as the stock of capital in an economy is
closely related to the possibilities of effecting changes in the scale of technology of
production.

In fact, the economy remains in a better position to enjoy the advantages of large scale
production and increased production.

Conclusion: To an economist, capital usually means liquid assets. In other words, it's cash in
hand that is available for spending, whether on day-to-day necessities or long-term
projects. On a global scale, capital is all of the money that is currently in circulation, being
exchanged for day-to-day necessities or longer-term wants.

https://www.economicsdiscussion.net/economic-growth/what-is-the-role-of-capital-in-
economic-
development/4441#:~:text=Capital%20is%20helpful%20in%20raising,scale%20production%2
0and%20increased%20production.

https://www.investopedia.com/terms/c/capital.asp#:~:text=Capital%20is%20a%20broad%2
0term,a%20business%20or%20an%20individual.&text=A%20business%20in%20the%20financial
,capital%20as%20a%20fourth%20component.

https://www.youtube.com/watch?v=cau0u4QXdGM

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Presenter: Kristine Masilang

INVESTMENT CHOICE

Investment Choice means the fund, trust, company stock or similar investment vehicle in
which a Participant's Investment Funds Account is notionally invested.

Main factors influencing investment by firms

INTEREST RATE
Investment is financed either out of current savings or by borrowing. Therefore, investment is
strongly influenced by interest rates.

ECONOMIC GROWTH
Firms invest to meet future demand. If demand is falling, then firms will cut back on
investment. If economic prospects improve, then firms will increase investment as they
expect future demand to rise.

CONFIDENCE
Investment is riskier than saving. Firms will only invest if they are confident about future
costs, demand and economic prospects.

INFLATION
In the long-term, inflation rates can have an influence on investment. High and variable
inflation tends to create more uncertainty and confusion, with uncertainties over the future
cost of investment.

Wage costs
If wage costs are rising rapidly, it may create an incentive for a firm to try and boost labour
productivity, through investing in capital stock. In a period of low wage growth, firms may
be more inclined to use more labor-intensive production methods.

Public sector investment

The majority of investment is driven by the private sector. But investment also includes
public sector investment – government spending on infrastructure, schools, hospitals and
transport.

Why should you invest?

• If you invest money today, it will increase in the future the financial assets offer
returns on the money over the long run period
• You are working, you should always save money for retirement.

Conclusion: Investment is not just for private individuals but also for the Government to
exercise in order to achieve Economic Growth.

https://www.careinsurance.com/blog/health-insurance-articles/why-investment-is-
important-while-earning
https://www.economicshelp.org/blog/136672/economics/factors-affecting-investment/

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Presenter: Princess B. Mercado

Information Technology

the technology involving the development, maintenance, and use of computer systems,
software, and networks for the processing and distribution of data. (Merriam. Web)

• Time is Money - Saves time in producing goods and services that may affect the
overall sales of the business.
• Efficiency - Producing quality products or services.
• Specialization - Increased the division of labor and specialization of jobs.
• Natural Resources - Using natural resources can benefit business and economy.
• Industrial Expansion - Businesses improve because of technology leading to higher
profits.
• Research - further research means advancement.
• Internet and International Trade - allowing businesses to share information and
conduct trade in less time than the blink of an eye

According to the Philippine Statistics Authority (PSA) the gross domestic product (GDP) the
fourth quarter of 2020 maintained its growth rate of -8.3 percent while annual growth rate of
GDP for 2020 was revised downward from -9.5 percent to -9.6 percent. By 2021, the
governments’ goal is to reach the 6.5% - 7.5 % GDP and 8 to 10% GDP growth rate in the
country by 2022. (GMA NEWS) Digital payments, e-commerce, telemedicine, and online
education, is rising in the Philippines and has helped individuals, businesses, and the
government cope with social distancing measures, ensure business continuity, and deliver
public services during the pandemic.

Conclusion: IT has a huge advantage in helping in the development of the economy.

However, IT is just a companion of people in speeding the economic growth we still need
human action.

https://www.worldbank.org/en/news/press-release/2020/10/05/harnessing-digital-
technologies-can-help-philippines-overcome-impact-of-pandemic-hasten-recovery

https://hardeebusiness.com/resources/technologys-role-in-economic-development

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Presenter: Cyrine S. Ferrer

ECHNOLOGICAL PROGRESS

According to the Corporate Finance Institute, technological progress refers to the discovery of new
and improved methods of producing goods. Changes in technology lead to an increase in
productivity of labor, capital, and other factors of production.

Three Phases of Technological Progress

1. Invention
2. Innovation
3. Diffusion

Two Types of Technological Progress

1. Embodied Technical Progress

• improved technology which is exploited by investing in new equipment. New
technical changes made are embodied in the equipment.
2. Disembodied Technical Progress
• improved technology which allows increase in the output produced from given inputs
without investing in new equipment.

Positive and Negative Effects of Technological Progress

Positive
• Utilization of technology to create new services
• Fewer expenses, because there are not many employees
• Companies can reach a wider market
• Speed up workflow

Negative
• Occurrence of unemployment for workers
• Online Buying Resistance
• Unsure Data Security

https://corporatefinanceinstitute.com/resources/knowledge/economics/technological-
progress/#:~:text=Technological%20progress%20refers%20to%20the,%2C%20physical%2C%20int
ellectual%2C%20etc.

https://www.markfieldmp.com/the-positive-and-negative-impacts-of-technology-on-economics

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