1. Discuss briefly the Capital Flow and Capital Formation in the Philippine Financial System.

Capital flow - The movement of money for the purpose of investment, trade or business production. The Philippines generally posted net inflows in its capital and financial account. Net investment by non-residents in the Philippines went high and the continuing strength in portfolio investments concentrated in debt securities issued by the national government. There are also several factors influenced the progressive rise in investor confidence, including strengthening macroeconomic fundamentals, political stability and reports of strong corporate earnings. However, it is worth noting that exports of goods and services and remittances from overseas Filipino workers have been the main sources of foreign exchange inflows. Investments in Fixed Capital Formation in the second quarter of 2010 rebounded to 25.5 percent from negative 0.3 percent boosted by increased investments in Durable Equipment and Construction.

2. How does the Philippine Financial System work; formal and informal sectors? Financial system is a network that generates, circulate and control money. In the Philippines, the Bangko Sentral ng Pilipinas (BSP) vested by the state with the function of regulating the supply, cost and use of money with a view of promoting national and international economic stability and welfare. Formal sector – these include both bank and non-bank financial institution regulated by the BSP. Example: Private and government bank, private non-bank financial institution (investment companies, financing companies, pawnshops, insurance companies), government non-bank financial institution (GSIS, SSS) Informal Sector – these refers to all financial transaction outside the purview of regulations imposed by the BSP; escape taxation; flexible loan terms and operations. Example: individual money lenders (family, friends, loan sharks), informal credit union

3. Discuss the role of BSP in the Philippine Financial System The BSP is responsible for maintaining the piece stability conducive to a balanced and sustainable growth of the economy. The BSP provides policy in the areas of money, credit and banking. To keep the prices at reasonable levels, BSP must protect at all times the value of peso. There are several functions of BSP:

b. c. d. e.

The money manager – manages the amount of money available to the public.

The supplier of money – only the BSP can make and issue money, in paper bills and coins. The banker’s bank The supervisor of all banks – the BSP regularly monitors and supervises the operations of banks. The main bank of the government

recommend some effective programs for sales force. and to establish an open communication. setting up collaborative mechanisms. credibility and expertise in your particular field. Sales Force Management is one of the functions of effective Manager. • Target market • Goal and objectives • Marketing tools to use • Competitive advantage These factors communicate your integrity. How does Marketing Platform influence the performance of a company? Marketing platform is the determinants of: • What products or services that a company will showcase. 7. it is important that both departments have a clear picture of how their work relates to the organization’s overall activity. Both departments should acknowledge both points of view. companies. The Accounting and the Marketing Departments are as always in conflict during budgeting and planning. Example of unlawful activities: Kidnapping for ransom Drug trafficking and related offenses Graft and corrupt practices Plunder Robbery and Extortion Jueteng Piracy Qualified theft Swindling Smuggling Violations under the Electronic Commerce Act 6. how do you compromise the interest of both departments for the success of the company? This is a traditional area of conflict which arises from the nature of the respective roles of accounting and marketing. They are more cautious in their transactions and conduct business legally. businesses or financial institution are compelled to operate accordingly and do not engage in any unlawful activities because of several penalties accompanied by this law. As well as keeping each other informed.4. Because of this law. how does the AMLA influence the good business practices? Money Laundering is a crime whereby the proceeds of an unlawful activity as defined in the AMLA are transacted or attempted to be transacted to make them appear to have originated from legitimate sources. 5. The latest Anti-Money Laundering (AMLA) law safeguards the financial sector of the Philippines. .

realigning territories. Application: This involves acting in advance of a future situation. reallocating salesperson time. Stephen Covey’s Seven Habits of Highly Effective People. Application: organization. 8. rather than just reacting. • Habit 2: Begin with the End in Mind Self-discover and clarify your deeply important character values and life goals. and executing your week's tasks based on importance rather than urgency. The next three have to do with Interdependence (i. valuing and respecting colleagues. Application: Do not act on impulse. prioritizing. Application: Your guides or patterns in management are your character value and life goals • Habit 3: Put First Things First Planning. employees or even competitor within the . Taking responsibility for your choices and the subsequent consequences that follow. working with others) • Habit 4: Think Win-Win Genuinely striving for mutually beneficial solutions or agreements in your relationships.• • • • Designing and implementing good compensation and inventive program Monthly or quarterly workshops Motivating the sales force Giving recognition or awards to top sales person • • • Measuring and evaluating monthly sales performances Evaluation and analyzing your sales teams. and adjusting sales force size. Valuing and respecting people by understanding a "win" for all is ultimately a better long-term resolution than if only one person in the situation had gotten his way. It should be well-planned.e. discuss briefly each and its application in the management of business. Habit 1: Be Proactive Taking initiative in life by realizing your decisions (and how they align with life's principles) is the primary determining factor for effectiveness in your life. Envision the ideal characteristics for each of your various roles and relationships in life.

9. Leadership is more abstract when considered separately from management. which compels them to reciprocate the listening and take an open mind to being influenced by you. and modeling inspirational and supportive leadership. but takes on precedence for strategic management and long-term success. Demonstrate an understanding of the social / cultural. This creates an atmosphere of caring. and competitive environments on marketing products and services in a global society. political and regulatory. Collective effort within the management towards a common goals or The Last habit relates to self-rejuvenation. Application: improving yourself or self-growth. economic. It is having sound understanding to determine and ability to articulate visions and goals. Leadership is guiding a person or group toward the best results. . energy. and motivating subordinates. Leadership is in par with management. and positive problem solving. Management is concerned with present activities and the immediate results of those activities. Demonstrate an understanding of management and leadership and their differences. so as to achieve goals no one person could have done alone. Application: Learn to listen to others and take their opinion in good perspective. How to yield the most prolific performance out of a group of people through encouraging meaningful contribution. Leadership is making certain the ladder is on the right wall.• Habit 5: Seek First to Understand. • Habit 7: Sharpen the Saw The balancing and renewal of your resources. Management is concerned with getting up a ladder in the most effective and most efficient manner. technological. Application: objectives. establishing controls to measure the effectiveness and efficiencies. your mind and your spirit. improving yourself in the following three areas of your life: your physical body. legal. allocating resources to minimize costs and maximize benefits. then to be understood Using empathetic listening to be genuinely influenced by a person. 10. • Habit 6: Synergize Combining the strengths of people through positive teamwork. directing practices and procedures. respect. Management is planning and organizing projects and operations. and health to create a sustainable longterm effective lifestyle.

other parts don't even have land lines for phones. The ability of a company to be competitive also includes access to high speed communications .learning about the language and customs of your customers so you can use marketing promotion techniques that will fit their culture. Legal.This will determine what resources to utilize and how are you going to keep up with the global competition.some parts of the world have highly developed fiber optic cables. or have the business fined for noncompliance of some regulation.• • • • Social / Cultural . • .Understanding the economic environments of foreign countries and markets can help managers predict how trends and events in those environments might effect their companies' future performance there Technological – The technological environment also covers road and rail and ocean transportation as well as communications. Political and Regulatory – these are laws and regulations that business has to follow in order to make sure the business owners do not get arrested. Competitive environments . Economic .