In the recent twelvemonth, emerging market economic systems are turning quickly. Especially China, Brazil, Russia, India are the good known emerging market in the universe. As these markets are good known in the universe, but still have many potency markets which are emerging, such as Philippines etc. They have a big potency to better sustainable development and economic growing. However, emerging market is confronting assorted challenges, such as economic impact, political systems menace and the deficiency of engineering. Thus the selected rising state is Philippines.
Get downing signifier 16th century, Philippines become a Spain settlement. After the Spain and America War, the Philippines became a autonomous commonwealth and start to undertaking with fixing the state for independency in 1935, after 10 old ages, the Republic of the Philippines attained in 1946 and get down to reform authorities. Start from 2001, Philippines GDP is turning in every twelvemonth ( appendix 9 ) by its import, export and abroad exchange by Maid.
Although Philippines economic system is turning, but there are still have some cardinal issues in this state. The unemployment rate is high, societal and labour market indexs remain weak and low-wage export economic systems and large dainty of intensify planetary competition.
The purpose of this study is “ provide the characteristic of emerging market to measure Marco environment of Philippines ” . Base on the purposes, the chief aim of this survey is to understand the selected state of its macro-environment, to analysis the choice state of its trade, investing and migration forms, to justification of the selected state based on the secondary research.
2. Overview of Philippines
In order to warrant Philippines as a possible emerging market, hence, it needs to analyse the macro-environment of the state.
2.1 Macro environment
Macro-environment defined as the external factors which affect a company ‘s planning and public presentation, and are beyond its control. For case, demographic, A economic, technological, political, societal cultural, political orientation and other factors ( Ventureline.com 2010 ) .
For the economic, the Philippines weathered the 2008-09 planetary recessions better than its regional equals. The grounds are lower dependance on exports, higher degrees of domestic ingestion and big remittals from five million abroad amahs. Because of president Arroyo took office, the economic growing in the Philippines averaged 4.5 % per twelvemonth since 2001.
Despite this growing, poorness worsened during the term of Arroyo, because of a high population growing rate and unequal distribution of income. Due to this job, president averted a financial crisis by forcing for new gross steps, such as worsening financial shortages, tapering debt and debt service ratios, and increased disbursement on substructure and societal services bolstered optimism over Philippine economic chances.
However, the economic system still faces several long term challenges. The Philippines must keep the reform impulse in order to catch up with regional rivals, encouragement trade, better employment chances, and alleviate poorness. High authorities disbursement to excite the economic system has created a big budget spread that could restrict the authorities ‘s ability to turn to these issues. ( Throdra.com 2010 )
For the political, as Philippines is a democratic republic state with the president as both the caput of province and the caput of authorities within a purifier multi-party system. It occurs within an organized model of a presidential and representative. In the authorities system, it includes three brunches in at that place, the legislative subdivision, the executive subdivision and the judicial subdivision signifiers political system of the Philippines. In add-on, there besides holding the fundamental law system, the ‘Saligang Batas ng Pilipinas in Filipino ‘ is the highest jurisprudence of the land. And this fundamental law system was proclaimed in 1987 February. ( independenceday.com 2010 )
For the ideological, over 80.9 % people in Philippines are believe Roman Catholic. It is a largest faith in the universe, which is holding 1.1 billion followings. About their civilization, refer to the sixteenth century ( debut ) , it is non hard to understand reflects the complexness of theA history of the PhilippinesA through the blending of some diverse traditionalA MalayA heritages assorted withA Spanish, A AmericanA and otherA AsianA civilizations.
For the societal, harmonizing to the Philippines instruction system ( 2002 ) , as for gender distribution in the simple degree, male and female pupils are about every bit represented, while there are more females pupils at the secondary and higher instruction degree. In rural countries, work forces are expected to make work while adult females are allowed to prosecute instruction. Males have a higher rate of failure, dropout, and repeat in both simple and secondary degrees.
For the geographic, Philippines is in Southeastern Asia, archipelago between the Philippine Sea and the SouthChinaA Sea, east ofA Vietnam with 300,000 sq km country. Because of Philippines is in Southeastern Asia, it ‘s place going a cultural hamlets, a topographic point where Chinese, Americans, Malays, Spaniards, and others have interacted to hammer that alone cultural. ( Mongabay.com 2010 )
For the demographic, the population of Philippines is more than 97 million people ( appendix 1 ) , which is ranking 12 ( appendix 2 ) of the most populated in the universe in 2009. Besides, the mean age of this state is 22.5 old ages old, that ‘s mean there is no aging population in Philippines. Furthermore, this state is holding two official linguistic communications, Filipino and English, usually, English is usage for commercialism and concern. ( Indenpenceday.com 2010 ) Furthermore, they are most likely to hold faith, the largest group of faith is Roman Catholic, and there is 80.9 % out of 100 in this state.
For the engineering, there is less likely to hold the engineering development in Philippines. Actually, it is a service based state, and develops agribusiness and industries, with particular accent on nutrient processing, fabrics and vesture and electronics, automotive constituents and other light industry.
For the legal, harmonizing to Cruz, Isagani A. ( 1991 ) , he stated that the Philippine legal system is preponderantly derived from Spanish and American jurisprudence, and its Torahs are enacted by Congress. Besides, about the local statute law of Philippines, it divided into several political units, these are the states, metropoliss, municipalities and the barangays. Each of these political units can ordain ordinances applicable within their several territorial legal powers which are called “ regulations. ”
For the environment, between 1990 and 2005, Philippines are lost its 3rd forest screen in order to derive the net income from the tree. Beside to derive the net income, it will damage to the environment. Due to the job of illegal logging, the forest represents a 20 per centum bead from the rate of the 1990s. ( Rhett Butler 2010 ) And this job besides make World Wildlife Fund ( WWF ) 2010 attending, it stated that non merely the rain forest is confronting the job, but besides province the job of pollution and overfishing, harmonizing to theA Asian Development Bank ( ADB ) , there has been a bead of 90 % in the measure of Marine beings that can be trawled in some traditional fishing countries of the Philippines.
3. Analysis the trade, investing and migration forms in Philippines
About the trade of Philippines, Chinese was its first residents when it has been an of import Centre for commercialism for centuries for its cultural minority ( economywatch 2010 ) . Besides, it is the member in several international trade organisations including the APEC, ASEAN and WTO etc. which can assist Philippines trade activity more stable. Furthermore, about its trade activities are including import and export. For the major import trade goods of the Philippines are iron and steel, chemicals, grains, plastic, electronic merchandises and mineral fuels etc. And the chief import spouses are Japan, US and China. ( Appendix 3 )
For the major export trade goods of the Philippines are transport equipment, garments, Cu merchandises, crude oil merchandises, coconut oil and electronic merchandises etc. And the chief export spouses are US, Japan and Holland ( Appendix 4 ) .
About the investing in Philippines, it is holding lightweight potency to the investor. Harmonizing to FDI.net ( 2010 ) , the figure ( appendix 5 ) shows the statistic of the FDI in flows, it stated that the in flow is increasing twelvemonth by twelvemonth from 2003, but the figure merely show the statistic to 2006. Therefore, GDP will exemplify the existent growing of this state. The figure ( appendix 8 ) shows the Philippines grew by 0.9 % under the troubled planetary fiscal establishments but Philippines is confronting the job of unemployment rate is 7.5 % ( appendix 11 ) and the job of population rise, because the outgo can non cover by the GDP growing.
3.3 Population and Migration
About the population and migration in Philippines, it is ranked at 12 in the universe, and the average age in Philippines is 22.5 old ages old which is ranking at 150 and it is a immature age construction. About the migration, it is ranking at 127 ( appendix 10 ) in 2010. Mention to the figure ( appendix 9 & A ; 10 ) , it shows that Philippines of the net migration rate is -1.34/1000 population
4. The features and challenges of Philippines
As reference before, Philippines is the member in several trade organisations such as APEC, ASEAN and WTO etc. , which can supply Philippines some different chances in its trading development. Besides, there are important chances of export publicity due to merchandise liberalisation, as of U.S. Department of Commerce informations ( 2008 ) , bipartisan U.S. ware trade with the Philippines stood at $ 17 billion.
However, there besides have some challenges in this state. Because of the low-wage export economic systems and escalating planetary competition, it is the biggest dainties towards to Philippines. Due to this job, the state of the export and import have fell 22 % and 15 % when compared with 2008 in 2009.
Harmonizing to The Board of Investment of Philippines ( 2010 ) , it forecasted to turn at 3.5 per centum in 2010, in order to have a stronger mentality for the universe economic system, besides rise deployment of abroad workers that will hike remittals, recovery in private ingestion and robust public disbursement. Besides The World Bank ( 2010 ) is commented with a puting out schemes, it stated that despite a series of diverse planetary dazes, the balance of payments remained strong throughout the past two old ages, which is related to strongly counter-cyclical workers remittal influxs, and it besides predicted the GDP will growing at 3.5 in 2010 and 3.8 in 2011. These are the economic system chances and the policy success to the Philippines. But it besides mentioned that the societal and labour market indexs remain weak which will reflecting the series of crises that have hit the state.
Therefore, Philippines need to better the societal and labour market by some new policy.
4.3 Population and Migration
Harmonizing to the current province of Philippines, there is holding chances and challenges about this phenomenon. As Philippines is holding the immature age construction, hence, the labour force is big ( appendix 12 ) which is ranked at 16 in the universe.
Although it is an chance in economic, but the immature age construction will impact the authorities load and big unemployment.
As the consequence of migration is besides numbering the illegal in-migration, so if the migration is about the illegal in-migration, the society will be more stable. But if the higher degree of instruction in-migration to the other state, it will be consequence of the economic of the state.
5. Justification of Philippines
Philippines is one of the turning emerging market in the universe. As the survey reference before, although it is non the highest growing rate when comparison with BIRC but Philippines is a possible market in future. Furthermore, the labour force is in a high degree in Philippines. Investing in Philippines can pay a low cost of labor. Besides, the import and export spouses of their economic are stable, so Philippines will bit by bit improved in future.
To reason, this survey describes the overview of Philippines with the macro environment. Besides, this survey indicated the Philippines features and challenges in order to place the state current position.
As a consequence, Philippines is a possible state in emerging market. However, it besides needs to confront the different issues such as the societal and labour market indexs remain weak because of the instruction degree particularly male is low ( CIA 2010 ) . The authorities should implement some new policy in order to better the Filipino.
As reference before, Philippines is a cultural hamlets in many states and it has many import & A ; export spouses. Therefore, Philippines can keep a well relationship with other states, which can pull investors to put in Philippines.
7. Reference List
1. Cruz, Isagani A.A 1991 Philippine Political Law. Central Law Book Publishing: Quezon
2. Boi.gov 2009 ‘Board of investing 2005 ‘ [ Online ] Available at:
hypertext transfer protocol: //www.boi.gov.ph/index.php? id1=3HYPERLINK “ hypertext transfer protocol: //www.boi.gov.ph/index.php? id1=3 & A ; id2=6 & A ; id3=0 ” & amp ; HYPERLINK “ hypertext transfer protocol: //www.boi.gov.ph/index.php? id1=3 & A ; id2=6 & A ; id3=0 ” id2=6HYPERLINK “ hypertext transfer protocol: //www.boi.gov.ph/index.php? id1=3 & A ; id2=6 & A ; id3=0 ” & amp ; HYPERLINK “ hypertext transfer protocol: //www.boi.gov.ph/index.php? id1=3 & A ; id2=6 & A ; id3=0 ” id3=0 [ Assessed at 27 July 2010 ]
3. CIA 2010 ‘Country Background ‘ [ Online ] Available at:
hypertext transfer protocol: //www.cia.gov/library/publications/the-world-factbook/fields/2028.html [ Assessed at 26 July 2010 ]
4. Commerce.gov 2010 ‘US section of commercialism informations fact sheet ‘ [ Online ] Available at:
hypertext transfer protocol: //www.commerce.gov/news/fact-sheets [ Assessed at 27 July 2010 ]
5. Economywatch.com 2010 ‘Export and Import in Philippines ‘ [ Online ] Available at:
hypertext transfer protocol: //www.economywatch.com/world_economy/philippines/export-import.html [ Assessed at 26 July 2010 ]
6. Indenpenceday.com 2010 ‘Philippines political system ‘ [ Online ] Available at:
hypertext transfer protocol: //www.123independenceday.com/philippines/political-system.html
[ Assessed at 24 July 2010 ]
7. Indenpenceday.com 2010 ‘Philippines human ecology ‘ [ Online ] Available at:
hypertext transfer protocol: //www.123independenceday.com/philippines/demography.html [ Assessed at 23 July 2010 ]
8. Mongabay.com 2010 ‘Philippines geographics ‘ [ Online ] Available at:
hypertext transfer protocol: //www.mongabay.com/reference/country_studies/philippines/GEOGRAPHY.html [ Assessed at 23 July 2010 ]
9. Mongabay.com 2007 ‘Rainforest of Philippines ‘ [ Online ] Available at: hypertext transfer protocol: //rainforests.mongabay.com/20philippines.htm [ Assessed at 24 July 2010 ]
10. Philippines instruction 2007 ‘An overview ‘ [ Online ] Available at:
A hypertext transfer protocol: //education.stateuniversity.com/pages/1199/Philippines-EDUCATIONAL-SYSTEM-AN-OVERVIEW.html # ixzz0v5BQF9oj
[ Assessed at 26 July 2010 ]
11. Throdra.com 2010 ‘ Philippines economic system ‘ [ Online ] Available at:
hypertext transfer protocol: //www.theodora.com/wfbcurrent/philippines/philippines_economy.html [ Assessed at 27 July 2010 ]
12. University of Alberta 2010 ‘Spanish-American War / War of Philippine Independence ‘ [ Online ] Available at:
hypertext transfer protocol: //www.ualberta.ca/~vmitchel/fw4.html [ Assessed at 26 July 2010 ]
13. Ventureline.com 2010 ‘Macro-environment -definition ‘ [ Online ] Available at:
hypertext transfer protocol: //www.ventureline.com/accounting-glossary/M/macro-environment-definition/
[ Assessed at 26 July 2010 ]
14. World Bank investing 2009 [ Online ] Available at:
hypertext transfer protocol: //www.worldbank.org.ph/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/PHILIPPINESEXTN/0, ,contentMDK:21983749~menuPK:3968175~pagePK:64027988~piPK:64027986~theSitePK:332982,00.html [ Assessed at 27 July 2010 ]
15. WWF 2010 ‘Environment jobs in Philippines ‘ [ Online ] Available at:
hypertext transfer protocol: //wwf.panda.org/who_we_are/wwf_offices/philippines/environmental_problems__in_philippines/ [ Assessed at 24 July 2010 ]