Quiz 2

1. Analyze socialism and capitalism in relation with Philippine society. Which of these economic systems
would work in our country?

Socialism is a type of command economic system. The state owns and

controls most of the factors of production, including land and capital goods.
The state also engages in central planning. Production of goods and services,
as well as their prices and distribution, are centrally controlled by the
state.xplanation:

A combination of both.

Pure, unregulated capitalism is just as hazardous as socialism, especially if socialist

revolution, as what the NPA is waging, causes social instability in which the shaming,
beating and execution of capitalists as what happened in Maoist China is bound to happen.
I don't want that because tyranny is never an option for me as a lot of innocent people will
die in the process. Socialism, in my opinion, is also just as likely to result in despotism
without democratic checks and balances.

However, there are some aspects from both socialism and capitalism that we shouldn't
ignore. For one, socialism is more humanist than capitalism because the interests of
the people will always take precedence over those of the bourgeoisie. It doesn't seek to
capitalize on human suffering and misery. You won't see socialists charging hospital patients
with financially-crippling medical bills or depriving the people of affordable (and even
subsidized) education. Basic necessities aren't made into profit-generating commodities.
This is why, in most cases, I tend to trust socialism and social democracy more than
capitalism. The successful response of China, Vietnam, Singapore, Scandinavia, Mongolia,
South Korea, New Zealand, Cuba and the Indian province of Kerala to the COVID-19
epidemic reinforced my distrust of laissez-faire capitalism, sympathy to socialism, and faith
in social democracy.

In the same vein, I also recognize capitalism's poverty-reducing potential. Singapore, China,
South Korea, Vietnam and Ireland rose up from poverty precisely because of market
reforms. The mass influx of foreign investors into the Philippines creates millions of job
openings, effectively employing the poorest of the poor. This, in turn, widens the tax base—
that is, assuming that the corporate income tax law is balanced in such a way that it still
encourages investment, provides for generous allowable deductions, and generates tax
revenues for national development. The building of infrastructure, the massive public
investment in education and R&D in order to industrialize the Philippines and make us
eventually rise to become a leader in scientific and technological innovation, and proper
long-term planning are necessary for us to finally become prosperous in the future.

But as I have mentioned above, free-market capitalism is extremely dangerous and shall

therefore be regulated. Capitalists, left to their own devices, are willing to enslave and pay
subsistence wages to their workers, and flout regulations designed to safeguard labor rights
and environmental welfare in order to minimize costs and maximize profits. If this isn't evil, I
don't know what is. In truth, they are no less evil than the communists they loathe, only that
their actions are legitimized by liberal democracy and protected by their puppets in the
government. Its staunchest defenders believe that capitalism is NOT an oppressive system
when overwhelming evidence in the United States alone shows how millions of students are
in crushing debt from student loans and price gouging of certain drugs is commonplace.

This is why, ideally, the Philippine government must keep a firm grip over the business
sector in order to defend itself from corporate lobbying, protect the people and the
environment from their greed, and promote "people's democracy" to safeguard the material
welfare of the Filipino proletariat and keep our voices alive and powerful.

PS: Is this closet communist propaganda? No. I may sympathize with socialists and defend
China and Vietnam a lot here from Western condemnation. But it doesn't mean I'm a
socialist. I'm a social democrat. Don’t bother calling me “comrade”. And my opinion above is
inspired by the following: (1) that socialism was demonized by the United States during the
Cold War because it was popular among the Third World and threatens the power of the
capitalists and therefore much of what we were taught are lies from anti-communist
propaganda; (2) that I'm both a humanist and a pragmatist, giving me an open mind that
directs me to listen to what socialists have to say, given the first point above, and take
the best of their ideology, among others, to ultimately form a political philosophy that
emphasizes the value of human beings; and (3) that I'm a member of the working class
myself and despite not being poor, I'm well-grounded on the realities of the Filipino masses
since my parents had a close brush with poverty in their youth and my relatives in the
province aren't wealthy, some of whom are OFWs themselves, who are risking their lives to
ensure that their families back at home are well-off.

Capitalism is the only option for Philippine society. For example, look at China - the Chinese
people were starving when China was socialist. Now, the Chinese economic system, called
“state capitalism,” created prosperity in the country. (Of course, it is a paradoxical situation -
the Communist Party leads the capitalist society. Karl Marx would probably have a heart
attack if he could see this travesty.)

Another model of prosperity and democracy versus totalitarian regime, misery, and
starvation is capitalist South Korea and socialist North Korea. The same Korean people live
in both countries - it is clear that socialism is a destructive force!
Activity 2
1. What are the effects of information revolution in today's global market?

Immerse yourself in today's global market with some amazing perspectives from some
brilliant minds from across the globe! Check out their words, thoughts, opinions, takeaways,
research findings, perspectives, etc.

Global market trends change rapidly with information revolution. This blog talks about
changes like sudden market upsets due to hacking or hacking related power outs, policy
changes like trade barriers, economic shifts like oil shocks or changing demographics like an
aging population, among others.

With the digital age, organizations across the globe have been able to connect across
borders with little difficulty. Online marketplaces make it possible for buyers and sellers
from all over the world to find each other. But this has brought new challenges for
international market transactions. Let's take a look at what it means for today's global
market environment.

Increasing global connectivity changes markets for both producers and consumers -
impacting prices, preferences, and preferences for goods and services. This Pin dives into
the effects of the information revolution on global markets today.

Because of information revolution advancements, information can now be transmitted in real

time, meaning that there are no delays in worldwide distribution. As events unfold across the
planet, people everywhere can have instant access to this information and thus adapt in various
ways.

2. What are the effects of multinational corporations in the Philippine economy?

Western businesses with Philippine offices may have a huge competitive advantage over their
non-remote office peers. The available tax cuts, rewards, and numerous other benefits
offered by the Philippine government make establishing an overseas office easier than ever.
When multinational corporations invest in a country they create employment opportunities.
They account for increased incomes and expenditures in the economy of the host country
stimulating growth. Workers also benefit from technology transfer as new machinery is imported
into the host country.

Advantages of a corporation include personal liability protection, business security and

continuity, and easier access to capital. Disadvantages of a corporation include it being
time-consuming and subject to double taxation, as well as having rigid formalities and
protocols to follow.

I think generally the presence of multinational corporations have beneficial effects on the
Philippine economy. Most important they bring jobs which is very important to a
developing country when the unemployment rate is relatively high. Secondly they train the
workers and bring management expertise to the country. As long as the government has
laws in place to prevent them from rigging the market due to their dominance, then
Philippine should welcome more foreign multinationals. Remember, Singapore and China
offered huge incentives to foreign multinationals to set up factories in their free economic
zones and reap the benefits. Today, Chinese companies have learned the foreign companies
technologies and are building their own multinational firms.

Labor-wise: Gave visibility to the excellent talent we have. Many many Filipinos are
recognized leaders in their fields abroad.

The salary scale for staff - I would think that they would stick to the market. Maybe for
exceptional talent, they are willing to invest and this is something that multinationals did.

Specialized skills - where a local company would rely on generalists to maximize the talent,
multinationals’ definition of roles would require the development of specialized skills

Market-wise: More consumer options. Ability to invest in the development of a market by

way of advertising and consumer promotions. Which in turn, makes local companies react
with their best.