Lesson —___ tC Types of Industries Overview Explain what is going on in your industry as a whole. What does the industry life cycle look like? Is the industry new, expanding, stable or declining? (Hint: if the answer is not “new” “expanding,” your business is in for a rough ride.) Is it growing faster, slower, or at the same pace as the economy as a whole? (‘Slower” is not a good answer.) If your company is affected by seasonal and/or cyclical changes, explain how. List the market leaders and define their market share. Also note any other important competitors in the industry, such as startups to keep an eye on. Analyze the main products and services provided by the other companies in your industry, and their major competitive advantages and disadvantages. (Predicting sales growth can be something of a black art—unless you ask the right questions. Specific Objectives At the end of the lesson, the learners will be able to: 1. Identify the different types of industries; 2. Distinguish the different services/products of business and industry; and 3, Identify the top ten exports and import products of the country. 143 Ssanned with CamSeannerThe Agribusiness AA business that ears mast or al of its revenues from agriculture fa agribusiness tends to be a large-scale business operation an ae eebaae in farming, processing and manufacturing and /or the packaging an on of products. About 12 million Filipinos work in the agricultural sector. Ifthe country can Significantly increase its exports and imports of agricultural goods, agricultural Provinces would generate much greater revenue, provide Salen Pelee epportunities, and lessen poverty in rural areas. Ths is especially important for Mindanao, the country’s breadbasket that has great underdeveloped potential for agricultural exports. The Philippine agricultural sector comprised 19% of GDP in 2009 and employed 34% of the labor force. Yet agricultural products made up only 8.3% of total Philippine commodity exports and Philippine agricultural exports were the smallest of the ASEAN-5. Table 22 contains agricultural exports and imports of the ASEAN-6 (less Singapore) for 2009 and shows that the Philippines exported US$3.2 billion, a very small amount compared to Indonesia, Malaysia, Thailand, and Vietnam. Of the five economies, only the Philippines imported more agricultural goods than it exported. Agricultural exports for the other four economies made significant, positive contributions to their trade balances. About 12 million Filipinos work in the agricultural sector. If the country can significantly increase its exports and imports of agricultural goods, agricultural Provinces would generate much greater revenue, provide more employment opportunities, and lessen poverty in rural areas. This is especially important for Mindanao, the country’s breadbasket that has great underdeveloped potential for agricultural exports. New free trade agreements coming into effect in ASEAN present both challenges and opportunities to the agricultural sector. Luzon is the country’s largest island. It hosts many agribusiness clusters and account for about 55 million out of 103 million of the Philippine market. Metro Manila, Laguna, Cavite, Rizal and Bulacan (“Expanded Metro Manila”) have some 24 million consumers. Central Luzon and Calabarzon supply food to over 12 million Metro Manilans. The regional firms are mostly domestic market-oriented in contrast to Mindanao’s agribusinesses. Central Luzon accounted for 13.7% of the total national agriculture production in 2013, followed by Socsargen 9.3%, and Calabarzon 8.8%. Similar rankings apply for the fisheries subsectee, Note: Data came from the Philippine Statistical Authority. Calabarzon has 40% of the country’s total manufacturin; t, Metro Manila 21%, and Central Luzon 13%. No breakdown fer Corman but Calabarzon should be leading other regions like the Central Visayas and Davao. The four leading agribusiness provinces are Bulacan, Laguna, Batangas 44 Ssanned with CamSeannerand Pampanga. Outward expansi . ; . ouceant pang ‘d expansions are in Cavite, Rizal, Tarlac, Pangasinan and ‘The provinces around Metro Manila have benefited from large local markets as well as good logistics, However, prices for land and labor are rising. The rising cost of property and the encroachment of subdivisions could mean that owners of hog and poultry farms in Bulacan, Batangas and Laguna will sell out and look for other locations, or altogether get out of the business. Expansion to other areas faces bureaucratic red tape from the barangay officials who have the major say in approvals, There are already cases of fishpond expansion in the South whose permit takes ‘over one year to secure. Local governments have become stumbling blocks to investments and job creation. Philippine agriculture needs to fully explore the multitude of new market opportunities these Free Trade Agreements (FTAs) present. The Philippine Government has the means to inform the agricultural sector of the best new export opportunities, while also developing—in consultation with the private sector—strategies to deal with potential threats to domestic production. For example, what should be done when an influx of lower cost processed poultry and pork arrives from neighboring countries such as Thailand? Are there models for local farmers to enable them to continue their present businesses of raising chicken and pigs? Competitiveness also requires a level playing field for Philippine exporters. By contrast with the EU—where there are constant efforts to level the playing, ficld among member countries—the ASEAN region lacks appropriate policies and rules. Filipino farmers are capable farmers. However, they face high domestic transport, labor, and other production costs. The cost of Philippine labor is many times lesser than in our neighboring countries. Insecticide costs twice as much in the Philippines as elsewhere in the region. Because the country is archipelagic, domestic transportation costs are high. Bureaucratic “overkill” is also a problem. Why does a new ethanol plant need Department of Agriculture (DA), Bureau of Internal Revenue (BIR), Department of Environment and Natural Resources (DENR), and other government personnel to often “inspect” it? Aggressive steps by both the public and private sectors are needed to solve these problems. Some local Philippine poultry integrators and commercial hog raisers have the potential to export to new FTA markets. The Philippines enjoys an advantage because some parts of the country are free from Foot-and-mouth disease (FMD), and the whole country may be declared FMD-free in the future. The Philippines has also been free of Avian Influenza. Although production costs for hogs and poultry are relatively higher in the Philippines, the most efficient local commercial farms are able to reduce costs significantly and can be competitive. Backyard farms, which raise only a few animals, face a more serious challenge under the new FTA trading regime. ‘They are less efficient yet comprise 60% of the subsector according to industry experts. Their small scale deprives them of efficiencies needed for competitive export production and marketing. 145 Scanned with CamScanner5 is now many years behind Thailang oe rises. Nevertheless, in integrating small farms into larger agribusiness enterPont ON es Philippines has successfully demonstrated that eee form of partnersh; harness many small farmers are possible. SMC prov 30,000 hectares were with its Cassava Assembler Program. Over 4-5 years, nd the rest in Luzon into production by small farmers, 80% in Mindanao and Tht n° Ot ean an the Visayas. SMC guarantees a floor price, facilitates ant SMEC NG or the Browers, services the loans from cassava crops, and provides techie) and some administrative support. In this model, the cassava may be us — domestic fuel blending. Thailand’s leading agribusiness firm Charoen Eon es s i) = started operations in the Visayas and is another example ieee P ‘odel of integration with small farmers can succeed in this country. CP in ae small farmers within its corporate system. All farm infrastructure is in the hands of the farmers. CP owns the supply of hogs the farmers grow. Farmers are partners. This model has made Thailand an agricultural powerhouse. The integration is deep and extensive, and includes farmers sitting on corporate boards. Although once ahead, the Philippine: Another local example of integration is the business relati with 30,000 small Filipino coffee growers. A non-automotive division of Toyota Tsusho Corporation, which deals in energy and food products, is reportedly discussing with Dole the sourcing of biodiesel from jatropha plants to be grown on at least 200,000 hectares in southern Mindanao for export to Asian and European markets. Jatropha was chosen because it requires minimal water and does not compete with edible crops. There is an interesting model in Mindanao in the middle of a conflict area, This model reverses the usual pattern of achieving peace before development is possible. Agribusiness firms Unifrutti and La Frutera brought development and peace to several municipalities of Sultan Kudarat and Maguindanao. They found local champions in the late Moro Islamic Liberation Front (MILF) leaders Hashim Salamat and Datu Paglas who wanted to see investment and job creation for their communities. Undeveloped lands were planted to export bananas and several thousand jobs were created and the project has prospered for over a decade. There are large tracts of agricultural lands in southern Bukidnon province and in the Autonomous Region of Muslim Mindanao (ARMM) where similar partnership projects could be initiated. List of Agribusiness in the Philippines A lot of people do not want to engage in soil til breaking task in the farming fields because they think it’s not worth it, low income, dirty job, no nightlife. Well..think again because the truth tenet of the agriculture business in the Philippines are profitable business, a good money maker and enjoyable and exiting carer..and yes, farmers have aiglenn fon In this blog post we will talk about one of the mone making busi: ideas in the Philippines; the agricultural business, so go get a ee coffee ayer few ing, dirt shoving and back 146 Scanned with CamScannercookies to chew and prepare to . | ; . about your chosen agricultural ae cnson ae aes decide 1. Hog Raising ein People use pork meat to cook their favorite viands. meal itis one of the most consumed meat in the Philippines which ere will always be a huge chunk of market for hog raisers. makin Bee, business can be one of the most profitable money eae g ee in the agricultural clout if you know the latest technology reeding and upgrading the breeds of your swines. With lower mortality rates on piglets and meatier pigs produced in your farm, a much bigger profit is a sure thing. Another thing you need to learn is the proper marketing of your products, as much as possible, avoid the “viajeros” they will buy your produce in bulk for a very cheap price. Learning how to find your own customers who will pay @ decent price for your pigs is a much better option. A 2. Poultry Raising Everybody loves fried chicken! Who doesn’t? Poultry meat . especially chicken meat have a huge market share in Filipino marketplaces (palengke) and supermarkets. That is why poultry raising is a good money maker especially if you will learn the advance techniques, right now there are chickens who are ready to be sold in less than 45 days! Chickens can also be raised for its egg, and that a different story. Finding the best supplier of chicks in your area is a must, sturdy chicks means lower mortality rate and higher sales. Next thing you need to learn is the use of the right dosage of antibiotics and vitamins also the proper feeding methods, this way you can save money and tesources. OF course learning how to market your farm produce is a mnust, it will be hard but rewarding in the long run because you will get more profit for your products. 3. Cattle Raising Tagged as best source of protein, cattle raising is also considered to be a great money maker because you only need a good pasture w hichconsist of differenthealthy grassand proper care for your cattles and you will surely get a nice profit worthy of your time especially if you're breeding your own cattle. You can either raise cattle for its aoyetand raising dairy cow for milk. Both can deliver money in your pocket as long as you learn the methods of taking care of it. Mastering the breeding methods and upgrading the breed of your cows is a must for maximum profit acquisition. Check out the legitimate cattle breeders in the Philippines that offers AI insemination, this way yOu can upgrade your cattles. Also learn how to improve your pasture, most backyard cattles gets lack of nutrition \ Scanned with CamScanner148 from poor grazing, growing different kinds of nutrition rich gras in the pasture can make your cattles healthier ane Brows faster. Nutrients rich pasture fields is extremely important f you're raising dairy cows, lack of nutrition will halt their milk pro Goat Raising i cacy i f the country, goat Known for being a delicacy in some parts 0} Dunit, ¢ i ini ity i because of its delicious meat is steady gaining popularity in the Metro and tender milk and incredibly healthy milk known to match the nutrient content of mother’s milk. Raising goat in the Philippines is not that hard, just like cattle raising, Fone to improve ai breed, Boar goat breeds are best Suited for meat production while Anglo-Nubian is great milk producer. Since the goats are part of the ruminant family, a steady supply of fresh grass is a must in order to get the maximum nutrition for faster growth and better meat or milk produce. Sell your produce in the marketplace, goat meat have its niche market in big market- place so if your selling in bulk make sure to find goat meat vendors and offer it to them. Rice Farming Every Pinoy eats rice? Have you not? Despite a lot of issues about rice farming in the Philippines being dead because of little support coming from the government, rice farming is still a great agricultural business in the Philippines. If you want to become a rice farmer but you don’t possess a huge ass farming fields then consider renting from other farmers. Some farmers are renting their farming fields, it can add to your operations expenses but it can be recovered once harvest time approaches. To further increase your grain harvest, try visiting International Rice Research Institute (IRRI) in Los Bafios Laguna just in front of South supermarket. Learn the most advanced method of rice farming which includes the best variety of rice to grow ina certain weather or irrigation conditions, pest resistant varieties and fruitful varieties. Learning the modern agriculture technology can boost your income in any agriculture business. Vegetable Farming Do you have a green thumb? Do Or maybe you're planning to start Planting veggies is a good agribusiness if you learn how te plant off-season varieties. This way you can avoid selling your products on a dirt cheap price, which means higher profit for aspiring farmer like you. you love growing vegetables? growing vegetables for profit? Scanned with CamScanner bkTo ensure a . hybrid vegetatye RO" Yields and pest resistant variety, choose a : seeds fror " many high value y m your local seeds supplier. There are some of theme Vegetables in the Philippines that you can grow Tomato, Sweet Bell Pe pper, Cucumber, Bitter Gourd or Ampala alaya, String Beans, oes Egg Plant or Talong, and more! Be ange Fish Pens . Raising your own catfish, oyster, prawns, pangasius, bangus or tilapia is fun and exciting business, each spectes sees different environment to grow either fresh or salt water. If you want to start your own fish pen business then you must learn a lot about the fish fe you want to raise and the desired area where you will put your ish pen. Since the waters in Bulacan and Cavite area also the Laguna de Bay are not the same 10 years ago, you need to study carefully. Though there are still good waters in other parts of the country that can be suitable for fish pens. Consulting the Bureau of Fisheries and Aquatic Resources can help a lot if you really want to pursue your fishing business. Corn Farming Corn always have a market so it’s a good idea to try growing some, a hybrid corns can yield more than ordinary ones so make sure to consult your seeds supplier what hybrid corn seeds are best in your location. You can either grow corn that are used for animal feeds or sweet corn used for human consumption. It will be better to find someone who will buy your products once harvest time arrive, especially if you're growing on a large scale production and still a newbie. But its much wiser if you will be the ‘one to market your own farm produce, learning the techniques of the “piyahero” and applying it for your own use. This way you can get more profit and enjoy the luxury of being a farmer, remember that agriculture business is not just farming but marketing and proper planning and strategy is also a must sj ¢ of the in-demand agricultural business in the pean Were are still a lot of profitable agribusiness out there these are: a. Processed Fruit: b. Seaweeds s and Vegetables 144 Scanned with CamScannerical Fruit Purees and Juices Tropi roP iruits Fresh Tropical F Mango Seed Oil Sugar Plantation Fisheries Dairy Bioethanol Biofuels Coco Methyl Ester Fame ao roe Manufacturing oo The process of converting raw materials, component or pars a ee goods that meet a customer's expectations or spec! ee a facturing commonly employs a man-machine setup with division of labor in a large scale production. To establish a small manufacturing enterprise, an entrepreneur needs to be a strong willed person who has the desire to succeed no matter the many predicaments that may arise. For one, there are many laws and regulations that govern the manufacturing industry. The entrepreneur will be required to conform to all the licensing bodies may it be the government or the local authority’s requirements. Add to this, there are numerous licenses required, depending on the line of manufacturing you are contemplating to enter to. These requirements are not limited to small companies alone but to the whole manufacturing industry. It does not matter where you are based in the world, you will have to adhere to the requirements, otherwise, you will not be allowed to carry out your manufacturing business. These rules, laws and manufacturing regulations are mostly concerned with health, any type of pollution and the quality of the manufactured products. What a person or a group need to know is that getting all these very necessary documents may take time, so they have to be patient. Some of the best small manufacturing ideas that can be carried out at your home include: 1. Furniture Making This falls under small home-based ‘ j Fi , a manufacturing section of an enterprise. Furniture such as lockers, bookshelves, Breen chairs, tables etc. will always be required by the society at large. This being 50, it is a very viable option to start yours i roams selves a furni business, in fact, you are going to do very ee manufacturing 2. Drinking Water Business Every living org; anism uses : . beings are not left, the water to quench its thirst. Human y need water regularly to purify and cool theit 150 Scanned with CamScannerbody s i Y systems. There is no other quencher than pure natural water. Here, a lasting, Le could earn good money by tapping into this ever- Witheat seat mineral that is very essential for human survival. become (ecet Water, there is no life anywhere. Now-a-days, it has water Which they to see people carrying small bottles of mineral thee ommith they buy in stores, This being the case, one can start Packs ater packing business at their own home and sell the Penns to these stores, All you have to do is to comply with the Eedulzements by the governing bodies to start this very profitable 3. Soap Manufacturing Business This is another business a person may venture in. If you go to the shopping mall, it is full of different soap brands. This should deter you from manufacturing another broad of soap but if you can come up with a unique soap you are always going to have a market ready for your product. Furthermore, this type of manufacturing entity does not require a huge amount of startup capital. 4. Commercial Bread Baking Everybody from kids to their grandparents loves bread. They use this product daily and on regular intervals. This makes it a very viable business consideration for any business minded entrepreneur. One advantage of starting this business is, the start-up capital is minimal, and, you can do it at your own home comfortably. The large number of small and medium enterprises (SMEs) greatly contributes to the economic growth and industrial progress of developing countries. They are valuable to the manufacturing industry of the Philippines. Global expansion and growing economic integration allows SMEs to be potential product exporters. Through using locally available materials, SMEs have the opportunity to manufacture food and non-food products in small and medium scale. Manufacturing remains a critical force in both advanced and developing economies. But the sector has changed, bringing new opportunities and challenges to business leaders and policy makers. The global manufacturing sector has undergone a tumultuous decade: large developing economies leaped into the first tier of manufacturing nations, a severe recession choked off demand, and manufacturing employment fellatanaccelerated rate in advanced economies. Still, manufacturing remains critically important to both the developing and the advanced world. In the former, it continues to provide a pathway from subsistence agriculture to rising incomes and living standards. In the latter, it remains a vital source of innovation and competitiveness, making outsized contributions to research and development, exports, and productivity growth. But the manufacturing sector has changed—bringing both opportunities and challenges—and neither business leaders nor policy makers can rely on old Tesponses in the new manufacturing environment. ISI Scanned with CamScannerManufacturing the Future The next era of global growth and innovati manufacturing contributes to the global economy resents a clear view of how cooday and how it will probably evolve over the coming decade. 152 Findings indicates the following points: ributes to the economy shifts as 1. Manufacturing’s The way it oA today’s advanced economies, Role is Changing. 2. Manufacturing is not Monolithic. nations mature: f a ivi manufacturing promotes innovation, productivity, and trade more than growth and employment, in these countries, manufacturing also has begun to consume more services and to tely more heavily on them to operate. Globally, manufacturing continues to grow. It now accounts for approximately 16 percent of global GDP and 14 percent of employment. But the manufacturing sector's relative size in an economy varies with its stage of development. It is found out that when economies industrialize, manufacturing employment and output both rise rapidly, but once manufacturing’s share of GDP peaks—at 20 to 35 percent of GDP—it falls in an inverted U pattern, along with its share of employment. The reason is that as wages rise, consumers have more money to spend on services, and that sector’s growth accelerates, making it more important than manufacturing as a source of growth and employment. It is a diverse sector with five distinct groups of industries, each with specific drivers of success. No two manufacturing industries are exactly alike; some are more labor- or more knowledge-intensive. Some rely heavily on transportation, while for others, proximity to customers is the critical issue. It identified five broad manufacturing segments and analyzed how different production factors influence where they build factories, carry out R&D, and go to market. The largest segment b 88 value added) includes industries Se ae chemicals, and pharmaceuticals. These industries dependheavilyonglobalinnovation forlocalmarkets— they are highly R&D intensive—and also require close Proximity to markets, The second-largest segment is regional processing, which includes industries such as printing and food and beverages, The smallest Ssanned with CamSeannerSegment, with just 7 percent of global manufacturing value-added, produces labor-intensive tradable. 3. Manufacturing is entering a dynamic new phase. As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers will have substantial new opportunities—but in a much more uncertain environment. By 2025, a new global consuming class will have emerged, and the majority of consumption will take place in developing economies. This will create rich new market opportunities. Meanwhile, in established markets, demand is fragmenting as customers ask for greater variation and more types of after-sales service. A rich pipeline of innovations in materials and processes—from nanomaterials to -D printing to advanced robotics—also promises tocreate fresh demand and drive further productivity gains across manufacturing industries and geographies. These opportunities arise in an extremely challenging environment. In some low-cost labor markets, wage rates are rising rapidly. Volatile resource prices, a looming shortage of highly skilled talent, and heightened supply-chain and regulatory risks create an environment that is far more uncertain than it was before the Great Recession. New Approaches for Manufacturers Companies must develop a highly detailed understanding of specific emerging markets, as well as the needs of their existing customers. They will also require agile approaches to the development of strategy—using scenario planning rather than point forecasts, for example. And they will have to make big bets on long-range opportunities, such as tapping new markets in developing economies or switching to new materials, but must do so in ways that minimize risk. Acritical challenge for manufacturers will be to approach footprint decisions ina more nuanced way. Labor-intensive industries will almost always follow the path of low wages, but others, with more complex needs, must weigh factors such as access to low-cost transportation, to consumer insights, or to skilled employees. The result could very well be a new kind of global manufacturing company—a networked enterprise that uses “big data” and analytics to respond quickly and decisively to changing conditions and can also pursue long-term opportunities. For policy makers, supporting manufacturing industries and competing globally means that policy must be grounded in a comprehensive understanding of the diverse industry segments in a national or regional economy, as well as the wider trends affecting them. For example, shapers of energy policy need to consider which segments will be affected by higher or lower energy costs, how 8teat the impact is likely to be, and what magnitude of difference will trigger a location decision. Policy makers should also recognize that their long-term goals 153 Scanned with CamScannerfor growth, innovation, and exports are best served by supporting 7 fe ; ee for manufacturers (such as investing in modem infrastructure) and Dy Telping them forge the connections they will need to access rapidly growing emerging markets. and businesses are education and Two key priorities for both governments a ot their R&D capabilites, as the development of skills. Companies have to ‘ iff well as expertise eis analytics and product design. They will Fee computer-savvy factory workers and agile managers for complex global supply chains. In addition to supporting ongoing efforts to improve public education— Particularly the teaching of math and analytical sklls—policy makers must work with industry and educational institutions to ensure that skills learned in school fit the needs of employers. Retail and Services Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying consumers’ wants and needs through a lean supply chain. In the 2000s, an increasing amount of retailing is done online using electronic payment and delivery via a courier or postal mail. Retailing includes subordinated services, such as delivery. The term “retailer” is also applied where a service provider services the small orders of a large number of individuals, rather than large orders of a small number of wholesale, corporate or government clientele. Shops may be on residential streets, streets with few or no houses, or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to create a more comfortable shopping environment protecting customers from various types of weather conditions such as extreme temperatures, winds or precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Types of Retail Products Retail is usually classified by the following type of products: 1, Food products — typically require cold storage facilities. 2. Hard goods or durable goods hardline retailers — automobiles, appliances, electronics, furniture, sporting goods, lumber, etc., and parts for them. Goods that do not quickly wear out and provide utility over time. 3. Soft goods or consumables ~ clothing, other fabrics, footwear, cosmetics, medicines and stationery. Goods that are consumed after one use or havea limited period (typically under three years) in which you may use them. 4, Arts - Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift shops, and supplies for them, / 154 Scanned with CamScannerry International Trade ; Sele trade is the exchange of capital, goods, and services across international Porders or territories, which could involve the activities of the government and individual. (Dictionary.com) In most countries, such trade represents a significant share of gross domestic product (GDP). While inter- national trade has been present throughout much of history its economic, social, and political importance has been on the rise in recent centuries. It is the presupposition of international trade that a sufficient level of geopolitical peace and stability are prevailing in order to allow for the peaceful exchange of trade and commerce to take place between nations. Trading globally gives consumers and countries the opportunity to be exposed to new markets and products. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, anda product that is bought from the global market is an import. Imports and exports are accounted for in a country’s current account in the balance of payments (Samuelson, 2001). Historically, the Philippines have been an important center for commerce for centuries for its ethnic minority, namely, the Chinese who were also its first occupants. The archipelago has also been visited by Arabs and Indians for the purpose of trading in the first and early second millennium. As of 21st century, the country is member in several international trade organizations including the Asia- Pacific Economic Cooperation (APEC), Association of Southeast Asian Nations (ASEAN), and the World Trade Organization (WTO). Since 1980s, the Philippines have opened their economy to foreign markets, and established a network of free trade agreements with several countries. The United States is one of the Philippines top trading partner. In 2010, according to US Department of Commerce, trade between the Philippines and US amounts to US$15.4 billion. US is also the Philippines largest foreign investor, with foreign direct investment close to US$10 billion at the end of 2014. Under the Aquino administration, the government opened up the country to more foreign investment in industries such as business processing operations, mining and tourism. However, this move may be hindered by restrictions such a prohibition of foreign ownership of land and public utilities. ‘¢ total external trade in goods in 2014 reached $127.500 billion, expanding ty 70 ereent from $119.108 billion in 2013. The positive growth of the external trade was due to the increase of both inward and outward trading, of goods. Total imports went up by 4.8 percent to $65.398 billion in 2014 from $62,411 billion in 2013. Likewise, total export receipts accelerated. by 9.5 percent from $56,698 billion in 2013 to $62.102 billion in 2014, The country’s balance of trade in goods (BOT-G) registered a $3.296 billion deficit in 2014 from $5.713 billion deficit in 2013 (Philippine Statistics Authority). 155 Scanned with CamScannerTop 10 Exports Accounted for 82.0% of Total Export Receipts Export sales from the top ten exported commodities cae care pion, accounting for 82.0 percent of the total export revenue in 2014. gistered an increase of 12.3 percent from $45.334 billion in 2013 (Table 2). Electronic Products continued to be the top earner and major exported commodity for 2014 with 43.1 percent of the total exports and which accelerated by 11.9 percent from $23,931 billion in 2013 to $26.790 billion. Other Manufactures placed second with a share of 8.2 percent and a total receipt of $5.079 billion. It declined by 7.5 percent from the 2013 value of $5.491 billion. Machinery and Transport Equipment contributing 6.4 percent of the total export receipts, was the third top export in 2014 with revenue amounting to $3.978 billion, posting the highest increase of 90.5 percent among the top ten exports. Woodcrafts and Furniture, which ranked fourth with a share of 5.4 percent, declined by 0.1 percent from $3.337 billion to $3.334 billion in 2014. Other Mineral Products with share of 4.3 percent, ranked fifth with export receipts of $2.645 billion. It increased by 41.8 percent from the 2013 value of $1.865 billion. Rounding up the list of top ten exports for 2014 were: 1. Chemicals with an export value of $2.603 billion, decreased by 0.6 percent from $2.620 billion in 2013; 2. Ignition Wiring Set and Other Wiring Sets Used in Vehicles, Aircrafts and Ships with proceeds billed at $2,050 billion, gained by 18.4 percent from $1.731 billion in 2013; 3. Articles of Apparel, worth $1,854 billion, expanded by 17.3 percent; 4, Metal Components with $1.377 billion export receipts, decreased by 18.3 percent; and 5. Coconut Oil, worth $1.203 billion, rose by 19.6 percent from $1.006 billion export receipts in 2013. Top 10 Imports Accounted for 74.8% of Import Bill Total payment for the country’s top ten imports for 2014 reached $48.88 billion or 74.8 percent of the total import payment, registering a positive growth of 4.6 percent from $46.738 billion in 2013. Electronic Products, remained as the top imported commodities for 2014, accounting for 23.4 percent of the total import bill. It posted a decrease of 14 percent from $15.511 billion in 2013 to $15.297 billion in 2014. Mineral Fuels, Lubricants and Related Materials ranked second with 202 percent share and increased by 0.4 percent to $13.189 billion in 2014 from $13.140 billion in 2013. 156 Scanned with CamScanner| “S ae Equipment which ran! imports, and increased by 0.2 imports 'y 0.2 percent ked third, comprised 9.5 percent of the total from $6.223 billion in 2013 to $6.238 billion Industrial Machinery and Equipment, ranked fourth, recorded a 5.0 percent share and grew by 1.5 percent t ane billion recorded value in 2013, 10 $3.243 billion worth of imports from $3.194 billi ____ Other Food and Live Animals ranked fifth with 3.4 percent share of the total imports worth $2.237 billion, higher by 23.5 percent from $1.812 billion in 2013. Rounding up the list for the top ten imports for 2014 were: 1, Plastics in Primary and Non-Primary Forms, $2.076 billion, registering the highest increase among the top ten imports by 38.8 percent; 2. Iron and Steel, $1.809 billion, increased by 24.0 percent; 3. Miscellaneous Manufactured Articles, $1.709 billion, expanded by 25.7 percent; 4. Cereals and Cereal Preparations, $1.702 billion, went up by 333 percent; and 5. Telecommunication Equipment, $1.388 billion or an increase of 9.5 percent. Japan Accounted for 15.0% of the Total Trade The country’s top 10 trading partners contributed a total trade worth $98.145 billion or 76.7 percent of the total external trade in 2014. This comprised a total export receipt of $52.170 billion or 84.0 percent of the total exports and total import bill of $45.975 billion or 69.7 percent of the total imports. This registered a favorable balance of trade-in goods (BOT-G) which amounted to $6.195 billion. Japan was the country’s top trading partner in 2014, accounting for a total trade worth $19.154 billion or 15.0 percent of the country’s total trade. Exports to Japan totaled $13.901 billion while imports were valued at $5.252 billion, posting a trade surplus of $8.649 billion (Table 4). Electronic Products got a large share of 22.5 percent of the total exports to Japan valued at $3.129 billion, followed by Woodcrafts and Furniture at $3.023 billion or 21.7 percent (Table 5). On the other hand, majority of the imported products from Japan were Electronic Products billed at $1.714 billion or 32.6 percent and Transport Equipment with $928.95 million or 17.7 percent. People’s Republic of China was the country’s second largest trading partner in 2014 with total trade worth $18.337 billion or 14.3 percent of the total trade. Export receipts from China stood at $8.467 billion while payment for imports Was valued at §9.870 billion, resulting to a $1.402 billion trade deficit (Table 4). Export-wise, the biggest sales came from Electronic Products at $3.935 billion or 465 percent of the country’s exports to China, Other Mineral Products followed With total receipts of $1.681 billion or 19.9 percent (Table 5). Imported goods Purchased from China consisted of Electronic Products worth $1.889 billion 187 Scanned with CamScanneral imports. Minerals, Fuels, Lubricants and or 19.1 percet e 's percent of the country’s tot 047.79 million ora share of 9.6 percent Related Materials followed with imports of (Table 6). f - dhl ting for 11.2 percent or $14.399 United States of America placed third account SA were valued at $8.66] billion total trade in 2014. Receipts from exports to 290) | ; billion while payment for imports totaled to $5.738 billion, reflecting a oe surplus of $2.922 billion (Table 4). Majority of the exports were Elec Sees worth $3.180 billion or 36.7 percent of the total exports to USA any 7 as les of Apparel with $1.215 billion or 14.0 percent share (Table 5). Major inward’ shipments from USA were Electronic Products with payment worth $2.445 billion or 42.6 percent of the total. Cereals and Cereal Preparations ranked second and valued at $553.99 million or 9.7 percent of the total (Table 6). t trading partner of the country for Singapore ranked as the fourth largest! hat 5 n or a share of 7.1 percent to 2014 with a total trade amounting to $9.043 billiot ren eS total trade. Total outward shipments were valued at $4.451 billion while import payments reached $4.592 billion, recording a trade deficit of $140.77 million (Table 4). Electronic Products and Petroleum Products were the country’s major exports to Singapore with earnings of $3.120 billion or 68.7 percent share and $356.51 million or 7.9 percent of the total exports, respectively (Table 5). The bulk of inward commodities from this country were Electronic Products with import bill of $1.884 billion or 41.0 percent share, and Mineral Fuels, Lubricants and Related Materials worth $908.34 million or 19.8 percent share (Table 6). Republic of Korea was the country’s fifth largest trading partner in 2014 with total trade worth $7.644 billion or 6.0 percent of the total external trade. Export revenues from this country stood at $2.561 billion while payment for imports was valued at $5.083 billion, resulting to a $2.523 billion trade deficit (Table 4). The major exported goods were Electronic Products at $816.30 million or 31.9 percent and Other Manufactures with total receipts of $774.09 million or 30.2 percent of the country’s exports to Korea (Table 5). However, the main imports from this country were Minerals, Fuels, Lubricants and Related Materials which worth $2.286 billion or 45.0 percent and Electronic Products with import payments valued at $1.068 billion or 21.0 percent (See Figure 4).(PSA) FIGURE 4 Major Trading Partners of the Philippines: 2014 158 Scanned with CamScanner