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Mncs In The Philippines Case Study

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INTRODUCTION
Trade relations of the Philippines diverted its course from North America mainly the United States of America to the European Union and the to the Association of South East Asian Nations (ASEAN) in the span of 30 years. In order to participate in international trade, the Philippines needed to commit to reforms starting with the promotion of exports in 1973. At this point in time, import controls and tariffs are high but when 1980 came in the first Tariff Reform Program was implemented (TRP 1). Tariffs were lowered from 10% to 50% because of the start of liberalization of unilateral trade.
Due to the economic crisis of 1983 and constitutional change in 1986 trade reform was interrupted but at 1991 Tariff Reform Program II (TRP 2) was in motion aimed to cutback 30% if tariff with the use of ASEAN Free Trade Agreement – Common Effective Preferential Tariff (AFTA - CEPT) in 1993 and the induction of the World Trade Organization (WTO). At 1996 Tariff Reform …show more content…

Upon observation on the papers previously reviewed, there had been a great increase in FDIs in developing countries (UNCTAD, 1994), since it is often correlated with low wages therefore developed countries outsource their labour. A country’s political economy attracts investments. In Drope, J., Chavez, J., Lenchucha R., McGrady, B.’s case study on the tobacco sector of the Philippines (2014) shows the development of the control policies & regulation, taxation after Philip Morris International (PMI) invested (largest non-government owned tobacco company) in the Philippines. Fortune Tobacco Company also known as “Fortune” which is a domestic producer dominates the Philippine market in a “near capture” state. PMI has been pursuing domestic policies and regulations changes to increase its entrepreneurial capabilities in the

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