SAN MIGUEL, JAMES VINCENT C.

2 BSAIS

ASSESSMENT TASK 3

Identify a company which implemented FDI in the Philippines. Consider the

following:

1. Brief description of the company

Clark Development Corporation
Clark Development Corporation (CDC) is a government owned and controlled
corporation mandated to administer the Clark Freeport Zone Philippines to create quality
employment and help in the economic growth of the country. It is now in its 25 years of
existence under the umbrella of Bases Conversion and Development Authority (BCDA).
At present CDC is catering to more than 900 locators/companies engaged in different
types of industries such as Electronics, IT/BPO, Manufacturing, Aviation, Tourism and other
services employing a total of 115, 000 employees/workers as of June 30, 2018.
To assist the locators in hiring and placing skilled and qualified workers and to uplift the
life of the people in the neighboring communities, CDC created its Corporate Social
Responsibility (CSR) arm - CSR and Placement Division under External Affairs Department.
Clark is a sprawling, cosmopolitan metropolis that offers many places of interests and a
host of events and activities accessible to a wide spectrum of tourists and visitors. Located in
the heart of Philippine’s Central Luzon region, Clark is part of Pampanga province, bounded on
the north by Tarlac and Nueva Ecija, Bulacan on the east, on the south by Bataan, and on the
west by Zambales.
Almost the size of Singapore, Clark occupies over 33,000 hectares of prime land located
in the culture-rich Central Luzon. It is a natural entry point to the Asia Pacific Region, with only
3 ½ hours flying time away from Hong Kong, Taiwan, Singapore, Japan, Korea and other key
points in Asia.
With a highly improved road network and increasing flights at CIAC, Clark is setting out
to become the hub for business, aviation and tourism in the Philippines.
2. Greenfield/Brownfield FDI
In a greenfield investment, parent company opens a subsidiary in another country.
Instead of buying an existing facility in that country, the company begins a new venture by
constructing new facilities in that country. Construction projects may include more than just a
production facility. They sometimes also entail the completion of offices, accommodations for
the company's staff and management, as well as distribution centers.
The Clark Development Corporation is a Greenfield FDI since it opens new venture by
constructing facilities that is helpful to other countries. It also caters awesome tourism to
neighboring countries.

3. Government restrictions in accordance to its industry

In every industry, there are many restrictions set forth by the government. These
restrictions are for industries to comply with. In the Clark Development Corporation State,
government restriction such as implementing policies for keeping the area clean and
maintaining the environmental and wildlife stability. Also it is for all industries to comply with
payment of tax.

4. Government incentives in accordance to its industry.

A greenfield enterprise provides the investor with control over the business in several
ways that he probably wouldn't have if simply investing in an existing local company. One is in
establishing an overall strategy by, say, determining what sort of product or services it will sell,
and then setting rates of production and the pace of expansion in the target market.
Greenfield investment is an alternative to foreign portfolio investment, where an
individual or company merely buys the stocks or bonds of an existing company. It is also an
alternative to brownfield investing, in which an investor buys an existing business or production
facility