Raymund V.

Samar BSCE1A

What are the effects of multinational corporations in the Philippine Economy?

Multinational companies are corporations that establishes facilities in at least one
country other than its home country. Examples of this are Apple, Ford, Coca-Cola, Alphabet
(Google) and Microsoft. Because of their large number of facilities, MNCs can be a “make or
break” in terms of economy of the country it is in. In the Philippines, there are many
corporations present, and this is because in our country, they can produce the same quality of
product with a price of their choice. They can either make it cheaper but with a semi-good
quality, or with a higher price, having the same quality with all of their product.
Multinational Companies also comes with a higher rate of employment in the said country.
This will also result to a rise in the economic growth of the country as MNCs engage in Foreign
Direct Investment, thus creating a better capital flow in developing countries like the
Philippines. Investors may come in handy when it comes to a more diverse environment
created to make profits. Economical Growth will be noticeable but this is only present when
there is not much of a competition between companies, striving to get a hold of the
mainstream production.
Multinational Companies also opens up more chances for the Philippines to be known, in
the global-scale. With the large number of well-known companies present in our country, that
gives us a prime opportunity to leverage local talent and technological service expertise that is
highly-regarded in Southeast Asia.

Analyze socialism and capitalism in relation with the Philippine society. Which of these
economic system would work in our country?
Socialism is an economic and political system under which the means of production are
publicly owned, while the prices are controlled by the government to meet the needs of the
consumers. On the other hand, Capitalism is an economic system that makes the production
privately owned, basing the prices on a free-market system of “supply and demand”.
In my opinion, Socialism may work in the Philippines, as this will help the people on the
lower part of the spectrum, to be able to have the benefits that they’ve always wanted. This
also eliminate the terms “rich and poor”, and as the mantra of socialism is saying , “From
each according to his ability, to each according to his contribution.” which means that each
person in society gets a share of the economy’s collective production—goods and wealth—
based on how much they have contributed to generating it, making a good start especially for
the farmers that seems to have a lesser appreciation from the society despite the efforts their
giving to live a better life. But in the same note, Capitalism may also work, as this will open
chances for individuals to make a living, not being controlled by the government. Despite the
“equality” Socialism gives, Capitalism also provides individuality. To sum it up, a mixture of
capitalism and socialism may work in the country, negating the adverse effects of the
ideologies.

References:
https://www.investopedia.com/terms/m/multinationalcorporation.asp
https://www.thoughtco.com/socialism-vs-capitalism-4768969#:~:text=Socialism%20is%20an
%20economic%20and,of%20production%20are%20privately%20owned.