Assignment #3

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1. What are the effects of multinational corporations in the Philippine
economy?
- Multinational corporations (MNCs) can have both positive and negative
effects on the Philippine economy. Some of the positive effects include:
Job creation: MNCs can create job opportunities for Filipinos, especially
in industries that require specialized skills and knowledge. Transfer of
technology and know-how: MNCs can introduce new technologies and
business practices that can improve the efficiency and productivity of
local firms. Increased competition: The presence of MNCs can
stimulate competition in local markets, which can lead to better quality
products and services at lower prices. Increased exports: MNCs can
help increase the country's exports by sourcing goods and services
locally for their operations, and also by exporting products and
services that are made in the Philippines. However, there are also
potential negative effects of MNCs on the Philippine economy,
including: Crowding out of local firms: MNCs may have the resources
to outcompete local firms, which can lead to the displacement of
smaller enterprises. Repatriation of profits: MNCs may repatriate
profits to their home countries, which can result in a loss of capital for
the Philippine economy. Dependence on foreign investment: The
reliance on foreign investment can make the Philippine economy
vulnerable to external shocks and fluctuations in global markets.
Environmental concerns: MNCs may engage in practices that can harm
the environment, such as pollution or deforestation, which can have
long-term negative effects on the economy and the society. In
summary, the effects of MNCs on the Philippine economy are complex
and depend on various factors such as the industry, the size and
nature of the MNC, and the policies and regulations in place to govern
foreign investment.

2. analyze socialism and capitalism in relation with the Philippine society

- The Philippine society is predominantly capitalist, but there are also
socialist principles and movements that advocate for social welfare and
government intervention in the economy. Both socialism and capitalism
have their strengths and weaknesses, and the ideal economic system for
the Philippines may lie somewhere in between, where there is a balance
between private enterprise and social welfare programs that promote
equity and social justice.
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2. Do you think the positive effects of multinational corporations outweigh
the negative effects? Why or why not?
- Whether the positive effects of multinational corporations outweigh the
negative effects depends on various factors, including the specific
circumstances in each country, the nature of the industry, and the regulatory
framework in place. While MNCs can bring significant economic benefits, it is
essential to ensure that they operate in a responsible and ethical manner,
and that they are held accountable for any negative impacts they may have
on local communities and the environment.

3. History and Purpose (With Pictures): International Monetary Fund

(IMF), World Bank, Asian Development Bank (ADB)
(IMF) HISTORY & PURPOSE:
The International Monetary Fund (IMF) was founded in July 1944 during
World War II. Nations Monetary and Financial Conference, often known as
the Bretton Woods Conference. The IMF's principal goal was to foster
international economic cooperation and currency rate stability allow balanced
international trade growth and make resources available to member
countries in need. The IMF was established in reaction to the 1930s
economic and financial instability. Especially the Great Depression, which
was aggravated by a lack of collaboration among governments countries, as
well as the lack of a worldwide monetary system. The IMF's forefathers
aimed to establish an institution that would serve as a foundation for
collaboration among countries and aid in preventing the type of economic
volatility that led to the Great Depression. Surveillance, financial support,
and capacity building are its three primary functions. The IMF has played an
important role in stabilizing the international monetary system, although it
has experienced challenges. It has faced criticism for its policies and
practices.

SAMPLE MEETINGS IMF LOGO IMF BUILDING

HISTORY AND PURPOSE (WORLD BANK):
The World Bank is an international financial institution founded in 1944. Give
financial and technical aid to underdeveloped countries. It was constructed
in tandem with the at the Bretton Woods Conference in New Hampshire, the
International Monetary Fund (IMF) The United States. The World Bank's
principal mission is to alleviate poverty and promote development. Through
giving loans, grants, and other financial assistance to developing nations
assistance with technological issues.
The World Bank has been instrumental in the growth of numerous countries.
Asia, Africa, and Latin America, in particular. Infrastructure has been among
its projects. Programs for development, education, health, and poverty
alleviation. In addition, the organization offers countries with technical
support in areas such as public sector reform and financial management, as
well as environmental sustainability.

WORLD BANK MEETING WORLD BANK BUILDING WORLD BANK LOG

ADB HISTORY & PURPOSE:
The Asian Development Bank (ADB) is a multinational development bank
that was established in 1989.
The Asia-Pacific Foundation was founded in 1966 to promote economic and
social improvement in the Asia-Pacific area. It financing, subsidies, technical
aid, and policy advice to help its development countries that are members.
The ADB was founded with 31 members and currently has 68 members.
There are 49 from Asia-Pacific and 19 from other regions of the world. The
corporation is based in Manila, Philippines, and has offices all around the
world. The ADB's principal goal is to decrease poverty in the Asia-Pacific
region through encouraging economic development. Economic growth that is
both sustainable and inclusive. Infrastructure development is one of its focal
points. Mitigation and adaptation to climate change, regional cooperation
and integration, education and training Human capital development, as well
as governance and institutional capacity building, are all priorities.

ADB MEETINGS ADB LOGO ADB BUILDING

4. Corporations (Meaning), Bonds and Stocks (Explain), Name 5 Existing

Corporations (Photos, Products, and History)
CORPORATION
A corporation is a legal body in which investors acquire shares of stock as
proof of ownership.
They have an ownership stake in it. This entity serves as a legal cover for its
proprietors, implying that
They are not normally accountable for the corporation's acts, even if they
may gain from them.
Dividend payments and any increase in the value of their stock.
BONDS OF DIFFERENT TYPES
• Fixed-rate bonds - Until maturity, fixed-rate bonds pay stable interest
payments.
• Floating-rate bonds – Floating-rate bonds do not provide set returns on a
consistent basis. Instead,
Throughout the tenure, interest rates fluctuate depending on the specified
benchmark.
• Zero-coupon bonds - Zero-coupon bonds do not pay periodic dividends.
tenure. These bonds, however, are issued at a discount and are repayable at
the par value.
• Perpetual bonds - Perpetual bonds are debt securities that do not have a
maturity date.
maturity.
• Inflation-linked bonds - These bonds are designed to reduce the impact of
inflation.
on the face value and coupon payments.
• Convertible bonds - Investors who own convertible bonds have the option
to convert the bonds.
bond to a fixed number of equity shares in the issuing business at a specified
price
period from the tenure.
• Callable bonds - Callable bonds are high-yielding securities that allow the
issuer to call them at any time.
the right to call back the bonds at a pre-agreed price and date.
• Puttable bonds - Puttable bonds allow the bondholder the option to return
the bond and get a refund.
Request repayment of principal at a certain date prior to maturity.
STOCKS OF DISTINCT TYPES
• Common stocks, also known as ordinary shares, are partial ownership of a
company.
Having a stake in a corporation. This stock class entitles investors to
earnings, which are often created.
Dividends were paid out.
• Preferred stocks entitle holders to regular dividend payments before
dividends are declared.
Common stockholders received dividends.
• Growth stocks are shares that are predicted to rise faster than the market.
larger market.
• Value stocks often excel during moments of economic recovery.
establish solid income sources.
• Income stocks are securities that generate consistent income through
dispersing a company's earnings.
Profits, or extra cash, are distributed in the form of higher-than-average
dividends.
• Blue-chip stocks are well-established corporations with a substantial
market capitalization.
capitalization.
• Cyclical stocks - are immediately impacted by the performance of the
economy and often follow.
Expansion, peak, recession, and recovery are economic cycles.
• Non-cyclical stocks - Non-cyclical stocks are those that operate in
"recession-proof" industries.
Regardless of the economy, they seem to fare quite well.
• Defensive stocks - In most cases, defensive stocks produce stable profits.
Economic and stock market circumstances.
• IPO stocks - IPO stock is often awarded at a discount to business shares.
listings on the stock exchange.
• Penny stocks - A penny stock is an equity that is worth less than $5 and is
highly regarded.
speculative.
• ESG stocks - Environmental, social, and corporate governance (ESG)
equities place a premium on these factors.
Environmental preservation, social justice, and ethical management methods
are all priorities.
FIVE EXISTING CORPORATIONS

1. SMART COMMUNICATIONS

Smart Communications is also recognized for its response to the COVID-19

pandemic. During this time, the company had 600 stores in Metro Manila to help
customers get internet access, especially those working from home.

Moreover, it launched a community support program to help students suffering

from mental health concerns during the lockdown. It is a good cause that impacted
most people, and wonderful that they were able to sustain this cause.

2. PHILIPPINE NATIONAL BANK

 Philippine National Bank (PNB) is dubbed as the emerging best company to work for in
2021. In light of the pandemic, PNB has been recognized for its efforts to help people and
remain profitable in the past year. Now, PNB is up to a new journey as they face their
digitalization journey.

3. SAN MIGUEL CORPORATIONS

As for the companies under food and beverages, SMC is one of the Philippines’
largest and oldest conglomerates. Established in 1890, Southeast Asia’s first
brewery produced the best-selling beers in the Philippines.

It has recorded a high country’s gross domestic product (GDP) through its various.
It is always worth trying businesses such as beverages, food, packaging, fuel and
oil, power, and infrastructure through the years.

4. SM INVESMENTS CORPORATION
There is no doubt that SM is part of this list. SM is a leading Philippine company focusing on
businesses such as retail, banking, and property. If you are looking for a company to take
good care of your needs amidst this pandemic, SM has so much to offer.

5. MANILA WATER
Next in line is Manila Water. Employees recently commended it for its great return to work
policy. It garnered the approval of 94%, highlighting as well its offers for mental health
counseling and financial assistance programs to employees. Aside from that, Manila Water
developed learning and development opportunities for their employees, boosting their morale
and improving learning.