Socio Economic Impact

Socioeconomics (also known as social economics) is the social science that studies how
economic activity affects and is shaped by social processes. In general, it analyzes how modern
societies progress, stagnate, or regress because of their local or regional economy, or the global
economy. This method allows all social, environmental, economic and financial impacts of a
project or public policy to be measured in a monetary unit. The socio-economic
impact methodology is the most complete method.

The impacts of ocean acidification on marine organisms and ecosystems could also have
ripple effects on human populations, potentially affecting both local and global economies and
people’s way of life. In some areas, the entire population’s lifestyle centres around the oceans,
including the food they eat their art, and even elements of their language. Some communities have
adapted to the degradation of their marine environment, and for example have started eating
different types of fish and even modifying their touristic activities. However, not all countries have
the same possibilities for change, and the consequences for the local culture could be significant.
For example, the loss of coral reefs could lead to profound societal changes. This human dimension
is an important factor to consider when discussing ocean acidification. The OA-ICC promotes
interactions between natural and social sciences as an important step towards understanding its
impacts on human society, and developing mitigation and adaptation strategies.

An effort to address these issues led the IAEA and the Centre Scientifique de Monaco to
start working together in 2010 on the economic valuation of ocean acidification. Together the two
entities organize a series of international workshops, which aim to move the discussions from
science to solutions. Participants come from diverse backgrounds, such as natural and social
sciences, and represent governments, NGOs, as well as the private sector. Past workshop, focuses
have included the impact on coral reefs, fisheries and aquaculture, and coastal communities.
 Characteristics of Philippine Economy

The Philippines’ economic freedom score is 64.5, making its economy the 70th freest in
the 2020 Index. Its overall score has increased by 0.7 point due primarily to a higher government
integrity score. The Philippines is ranked 14th among 42 countries in the Asia–Pacific region, and
its overall score is well above the regional and world averages. The Philippine economy has
retained its moderately free rank for the seventh year in a row. GDP growth has boomed as well,
averaging more than 6 percent for the past five years, but the pace of growth is slowing along with
global commerce. To boost economic growth and continue to gain more economic freedom, the
government needs to focus on the country’s lagging Index indicators related to the rule of law and
the regulatory environment. The president’s 2019 veto of a bill to make labor laws more rigid was
a good sign, as was the indictment of the former chief of the Philippine National Police on
corruption charges.

A former colony of Spain and then of the United States that is spread over 7,000
linguistically diverse Western Pacific islands, the Philippines became a self-governing
commonwealth in 1935. President Rodrigo Duterte, elected in 2016, has consolidated power by
marginalizing his opponents. The brutality of his crackdown on illegal drug trafficking reflects
authoritarian tendencies. Nevertheless, in a sign of widespread public support, Duterte was
strengthened politically when his allies swept the 2019 midterm Senate elections. To improve
economic relations, Duterte has downplayed tensions with China. Agriculture is still a significant
part of the economy, but industrial production in such areas as electronics, apparel, and
shipbuilding has been growing rapidly. Remittances from overseas workers are equivalent to 10.5
percent of GDP. The Philippines recognizes property rights, but the enforcement of relevant laws
is weak and fragmented. Property registration processes are tedious and costly. Judicial
independence has deteriorated under the Duterte administration. Courts are inefficient, biased,
corrupt, slow, and hampered by low pay, intimidation, and complex procedures. Corruption and
cronyism are pervasive, and a culture of impunity hinders anticorruption efforts. The top individual
income tax rate is 35 percent, and the top corporate tax rate is 30 percent. Other taxes include
value-added and environmental taxes. The overall tax burden equals 14.2 percent of total domestic
income.
 Government spending has amounted to 20.1 percent of the country’s output (GDP) over
the past three years, and budget deficits have averaged 0.6 percent of GDP. Public debt is
equivalent to 39.6 percent of GDP. Protection of minority investors and risk-management practices
in the construction sector have been improved, but the overall competitiveness of the business
regulatory environment has deteriorated. Tax registration costs have increased. Labor costs are
low. Workers are highly motivated. The government budgeted more funds for subsidies to state-
owned enterprises in 2019, but actual payments to some SOEs have declined. The total value of
exports and imports of goods and services equals 76.1 percent of GDP. The average applied tariff
rate is 1.7 percent, and 285 nontariff measures are in force. In a move to attract longer-term foreign
investment, foreign ownership ceilings in a number of sectors have been raised. The financial
sector, which is gradually modernizing, remains relatively stable and sound.
 Market Structure

Market Structure is the one of the important elements to understand how market will
function determine the behavior of firms in the market and the outcome that will be produced by
the market. In economics term, market structure is the number, size, kind and distribution of
buyers and sellers.The most common forms of market structure that are seen in the economic world
are:

1. Perfect competition
2. Monopolistic competition
3. Monopoly
4. Oligopoly

All of these market structures have defining characteristics that separate them from each
other and are all set up in a way that will have a dramatic distinction on how the competition within
that market works. The defining characteristics of the market structure will be one of the most
important determining factors in how many, as well as, how large the major players within that
particular market become.

Perfect competition and equilibrium within the market structure

The first market structure to be described is named perfect competition. This market
structure is most easily recognized by the fact that its low barriers for entry on both the buyer and
seller allow for the continued operation of a large number of firms (Econ Guru, 2006). With a
market structure such as this, new firms are able to constantly enter the market so long as they
offer a product or service to a consumer base that is well received. The economic efficiency within
the perfect competition market structure, therefore, is seen to be very high because of these low
entry barriers for new firms, which allows for a constant and continued level of competition to be
maintained by the different number of firms within the particular market (Riley, 2012). One of the
benefits of perfect competition is easier access to market segmentation and determining the
demographics of the market. One of the most surprising factors about this sort of market structure,
however, is seen when examining the innovative behavior of firms within this market.
Monopoly's role within a structured economy

A third market structure seen in the economic world is the monopoly. The monopoly is
characterized as a market in which there is only one provider for a good or service to consumers
(Econ Guru). Within this type of market structure, the barriers for entry are extremely high as the
firm with all of the power in the market can undercut its prices and force competitors out of the
market. The United States started to abolish monopolies within the nation during the 1890's with
the enactment of the Sherman Antitrust Act. From a buyer’s perspective, the barriers are low as
their selection for products or services is so limited. In a pure monopoly with only one firm
controlling the market, the type of product is very limited; in fact, it is exclusively limited to what
that particular firm offers to its consumers (Riley, 2012). Being the controlling power of the
market, a firm operating within a monopoly is considered to be a price maker in that it will be able
to continually set, raise, and lower the cost of its offered product or service. Within this type of
market structure, the economic efficiency does run the risk of being damaged as the controlling
firm will not have to deal with any competition, which could allow for the firm to become
inefficient over time (Riley, 2012). The same holds true for the innovative behavior within a
monopolistic market. The controlling firm has no real reason to be constantly reimagining and
redesigning its products or services and can instead release upgrades and updates at its own pace
with no real urgency. Although, it is worth noting that a firm that holds a monopoly on the market
could also have a strong innovative behavior because it is able to spend a great deal of its profits
on research and development.

Oligopolies and corporations' efforts to control the market

The final market structure to observe is the oligopoly. Similar to a monopoly in many
regards, the oligopoly has one major difference when compared to the former. Within a monopoly,
there is one firm that controls the market, whereas an oligopoly has a few firms that dominate the
market (Econ Guru, 2006). A market structure such as this will place considerable barriers on new
firms that are entering the market as they must compete with several corporate giants, but will put
limited barriers on the buyer because of the different options available to him or her.
 The firms that dominate the market of an oligopoly can act, for the greater part, as price
makers so long as the dominant firms keep their prices relatively similar (Riley, 2012). One such
example of this occurring in the real world is seen in the gas industry. The large firms that control
the industry are able to set the price for gasoline to whatever they should choose so long as the
competition does not dramatically lower their own prices and attract a larger proportion of the
market to utilize its product exclusively. It is within this market that the innovative behavior is
observed to be the highest (Riley, 2012). The dominant firms are seen to spend a significant portion
of their marketing resources on research and development so that they can have the most
innovative products to offer to their consumer base in order to attempt to gain a larger control of
the market and gain a competitive advantage over their major competitors. It is this sort of market
structure that Samsung Electronics finds itself a part of. Samsung Electronics operates in a market
that is clearly an oligopoly. One of the major components to this firm is seen in its cellular phone
sales. In this market, Samsung operates as a dominant force along with such companies as Apple,
Motorola, and LG. Outside of these major players, the competition is much more limited. It is
extremely difficult for outside firms to gain a foothold in this market because the dominant firms
have such a large percentage control of the consumer base currently. The effectiveness of the
market structure is extremely beneficial for Samsung, and they have taken full advantage of it to
become one of the most dominant firms in their particular market. It is directly from the structure
of the market that the forms of labor and demand are shaped for Samsung.

Samsung and the oligopoly

The demand that Samsung receives is based almost entirely as a consequence of the market
structure of an oligopoly. Because Samsung created a business strategy that is able to dominate
the market and place a high emphasis on the research and development of new, innovative
products, the firm is able to offer technologically superior products to its consumer base that allows
for the demand for its products to rise. The Galaxy S III is a perfect example of this. This particular
product is so innovative and well designed that it has allowed Samsung to become one of the top
sellers of mobile phones worldwide and has consistently beaten out the iPhone 5 (Samsung’s main
competition from Apple) on a consistent basis. In terms of labor, as well as supply, the same basic
principle holds true.
 It is because of the dominant share of the market that Samsung controls by successfully
navigating its market structure that allows for the company to produce so many products and keep
its supply high enough to meet the demand facing it, and in order to produce such a high supply
of new, innovative products, Samsung is able to employ a large labor force for everything from
assembly of a product to research and development of new ways to design, market, and ultimately
sell to its consumer base.

Conclusion

Market structures play a key role in the way a firm is able to do business. By understanding
what sort of market structure that a firm is placed in, that firm will be able to see if the cost of
business is worth continuing to fight for. The factors that separate the different types of market
structures can be the difference in whether or not a start-up firm will be able to become successful
or be driven from business by the major players that currently exist in that particular market
structure. It is by understanding and playing to the market structure that certain companies such as
Samsung Electronics have been able to become so successful. Different market structures place
emphasis on different factors; however, one truth is held. In the end, every firm is simply trying to
push its products or services onto its consumer base. This is one of many economic axioms that
has come about because of study and research paper writing.

References

Econ Guru. (2006). Market structure. EconGuru Economics Guide, Retrieved from
http://www.econguru.com/micro/market-structure.shtml

Economics Online. (2012). Monopolistic competition. Economics Online, Retrieved from

http://www.economicsonline.co.uk/Business_economics/Monopolistic_competition.html

Hubbard, R. G., & O'Brien, (2012). Economics. (4th ed.). Prentice Hall.

Riley, G. (2012, September 23). Market structure summary. Tutor2u, Retrieved from
http://www.tutor2u.net/economics/revision-notes/a2-micro-market-structures-summary.html
DEFINITION OF TERMS:

1. Consumer (new products and services)

A consumer is a person or a group who intends to order, orders, or uses purchased
goods, products, or services primarily for personal, social, family, household and similar
needs, not directly related to entrepreneurial or business activities.

https://en.wikipedia.org/wiki/Consumer
2. Suppliers (investors, capital, income)
A supplier is an entity that supplies goods and services to another organization.
This entity is part of the supply chain of a business, which may provide the bulk of the
value contained within its products. Some suppliers may even engage in drop shipping,
where they ship goods directly to the customers of the buyer.

https://www.accountingtools.com/articles/2017/5/16/supplier
3. Government (tax revenues, poverty alleviation, basic services)
A government is the system or group of people governing an organized community,
often a state, but also other entities like for example companies, especially in the case of
colonial companies. In the case of its broad associative definition, government normally
consists of legislature, executive, and judiciary.

https://en.wikipedia.org/wiki/Government
4. Households (standard of living, employment)
Household income is a measure of the combined incomes of all people sharing a
particular household or place of residence. It includes every form of income, e.g., salaries
and wages, retirement income, near cash government transfers like food stamps, and
investment gains.

https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income
5. International trade (exports and imports of goods and services)
International trade refers to the exchange of goods and services between the
countries. In simple words, it means the export and import of goods and
services. Export means selling goods and services out of the country,
while import means goods and services flowing into the country.

https://efinancemanagement.com/international-financial-management/international-trade