REACTION PAPER: March

Philippine exporters see business in Japan rehab

MANILA, Philippines - While complaining of temporary disruption in the delivery of orders to some parts of Japan, Philippine exporters are seeing opportunities in the near future in the Japanese market when rehabilitation efforts in the earthquake-, tsunami- and now-nuclear crisis-stricken country kick off.

Sergio Ortiz-Luis, president of the Philippine Exporters Confederation, told the BusinessMirror that both the services and merchandise exporters in the Philippines should get ready to support the expected increase in orders from Japan.

“There will surely be a shortage in the supply of food and manpower in Japan, so the opportunities are there,” Ortiz-Luis said.

He said the exporters’ group is now getting feedback from some of its members that orders are not getting delivered due to the logistics problem in Japan, particularly in the damaged areas in northeast, right now.

Mostly affected, he said, are agricultural products, since they are perishable and the buyers in Japan need to delay the orders until the transport and communications system are already in better condition. The condition of the storage facilities also needs to improve.

“But this is only temporary. When things normalize, we are seeing opportunities,” Ortiz-Luis said.

He said when the rehabilitation starts, Japan will probably have to hook up with Philippine companies that will support the reconstruction efforts. This would mean actual employment of Filipinos in Japan, since the Japanese may not be able to fill up the need for manpower themselves.

Also, there will be Japanese companies that will be prompted to outsource some of their operations elsewhere while in the process of rebuilding.

Japan used to have a 30% share in the Philippine merchandise exports, Ortiz-Luis said. Its share in Philippine exports has now fallen to about 8% to 10%.

Exports to Japan are mostly electronics and auto components, minerals and farm products.

Earlier, the Semiconductor and Electronics Industries of the Philippines Inc. said its member-companies are encountering problems in the supply chain because several inputs and components come from Japan-based plants.

This is also mainly due to the disruption in the transport system in the areas damaged by the major earthquake and tsunami that hit Japan last Friday.

SOURCE: http://www.abs-cbnnews.com/business/03/16/11/philippine-exporters-see-business-japan-rehab

The tsunami that hit Japan may have a positive effect in our country’s economy. As what we have heard they are currently experiencing shortages from their supplies like food because their agriculture was one of the most affected area and laborers for many people died. Many employers had lost their employees that day. Many are totally damaged like their communication, transportation and operation in doing business. I must say that this event is really a great help for our economy but I am not saying that I’m happy of what had happen to Japan last week because neither am I was also afraid for our country has reached the alert level 2 of tsunami.

Because of this damages and shortages that Japan is experiencing today it opens a great opportunity to us every Filipino to exports our goods and services. Because today that country really needed help to recover from the disaster that had happen to them last week. This would be good for the export company and to those Filipino who wants to have a job abroad. Due to what happen many employees from different country and different company had returned back to their homes and many have died in tsunami. This is why the country experiences shortage in labor.

As a student from my point of view this is really a great opportunity for our country to improve the economy even if this is only temporary. At least this will improve our economy for good. We must take chances in order to make help our economy as one of the concern citizen of this country.

REACTION PAPER: Feb.

PHL HAS WORLD'S HIGHEST POWER RATES
 

MANILA, FEBRUARY 23, 2011 (STAR) By Jess Diaz - The Philippines, which ranks among the most corrupt countries, also holds the unenviable record of having the highest residential power rates not only in Asia but in the entire world.

Officials of the Energy Regulatory Commission (ERC) and the Power Sector Assets and Liabilities Management Corp. (PSALM) admitted as much yesterday in the course of a hearing by the House energy committee on the high cost of electricity in the country.

Responding to questions raised by Eastern Samar Rep. Ben Evardone, the energy officials said the Philippines has overtaken Japan as the country that charges the highest electricity rate on residential users.

As for commercial users, the country charges the second highest rate after Singapore. Commercial users pay more here for electricity than those in Japan.

Former Pampanga Rep. Zenaida Ducut, whom former President Gloria Macapagal-Arroyo had appointed ERC chair months before ending her nine-year presidency, and Lourdes Alzona, PSALM vice-president for finance, could not give the energy committee comparative data on the rates in Japan, Singapore, the Philippines, and other countries.

But Evardone revealed the rates to reporters based on a Department of Energy report made available to him by Batasan Rep. Henedina Abad, chair of the energy committee.

Evardone, whose Resolution 106 prompted the committee inquiry, said the residential rate here is about 18 US cents per kilowatt-hour.

It is 17 cents in Japan, 15 in Singapore, eight in Thailand, seven in Malaysia, five in Indonesia, and three cents in Vietnam, he said.

In terms of the commercial rate, it is 14 cents in Singapore, 13 in the Philippines, 12 in Japan, eight in Thailand, seven in Malaysia, six in Vietnam, and five cents in Indonesia.

“No wonder we have not been attracting foreign investors. Imagine, we beat the developed countries and largest economies like Japan in terms of power rates?” Evardone said, adding electricity rates are a big part of the cost of doing business.

The energy officials tried to justify the high cost of electricity here by saying the other countries cited are subsidizing their residential users.

“But we also have subsidies here, like the lifeline rates for poor households,” Deputy Speaker Arnulfo Fuentebella, one of the authors of the Electric Power Industry Reform Act (Epira) of 2001, retorted.

“Our principal objective in enacting Epira 10 years ago was to bring down electricity rates. Sad to say, that did not happen. The law did not fail; it is the implementation that failed. This is not what we expected to happen,” he said.

Fuentebella hinted that the ERC and Congress should share part of the blame for the high cost of electricity here.

“The ERC has disregarded some mandatory rate reduction schemes in violation of Epira,” he said.

On the part of Congress, he said the legislature imposed a 12-percent value added tax on electricity, which used to be VAT-exempt.

Alzona admitted that despite the already high cost of power here, PSALM would push through with asking the ERC to approve an adjustment of up to 15 centavos per kilowatt-hour to enable it to pay its loans.

Rep. Juan Miguel Arroyo of the party-list group Ang Galing Pinoy urged PSALM and the National Power Corp. (Napocor) to collect billions from private power distributors and cooperatives before making the public pay more.

“They should collect from Meralco and electric cooperatives,” he said. Arroyo was energy committee chairman in the previous Congress.

Energy officials admitted that Meralco owes Napocor about P36 billion incurred between 2001 and 2003.

They said Meralco, the largest power distributor in the country, is disputing the billings and the case is now pending in court.

They said among distribution utilities in the provinces, the Lanao del Sur Electric Cooperative has the biggest debt owed to Napocor, which amounts to P4.6 billion.

Rep. Maximo Rodriguez of the party-list group Abante Mindanao shared Arroyo’s call for PSALM and Napocor to compel private distribution firms to pay their debts before petitioning for a rate increase.

“Meralco can afford to pay. It is making billions every year in net profits,” he said.

http://www.newsflash.org/2004/02/be/be004362.htm

Our country Philippines belongs to a Third World Country but has the capacity to have the highest residential power rates in the entire world. In this case we beat the country that belongs to a first world country which is Japan. As we can that country has fully developed they are now leading nation in scientific research, particularly technology, machinery and biomedical research.By the way what is a third world? It refers to the economically underdeveloped countries with common characteristics, such as poverty, high birthrates, and economic dependence on the advanced countries. 

Upon reading this article I felt bad because it seems that we are proud that we beat the Japan in terms of power rate. We must not be proud for something like this because this means the country is really not a well developed that is why we still belong to the third world. This would also mean that we more becoming undeveloped for this affects the economy and this would pull down the country’s economy. As of now our country’s economy is not that good so we must help as one of the citizen of this country by conserving energy. Because they are some places here like the Metro Manila that lacks energy source sometimes. That is why last year some places in Mindanao experienced rotating brownout.

As commerce student I am really concern on our country’s economy for this has something to do also with my course. And our place was one of the affected places that experience the rotating brownout. Our country belong to a third world so as a concern citizen we must try our best to help in enhancing our economy for this will benefit us all not just those who are in high position but it would be us the Filipinos. 

REACTION PAPER

Diane D. Penados
BSC - MA 3D
MWF 12:25 - 1:25 PM

Tourist arrivals up 19% in 2010 despite scares

MANILA, Phlippines - The country saw a rebound in visitor arrivals last year despite a deadly tourist bus hijack and foreign warnings of terror attacks, the government said on Monday.


A total of 3.45 million foreigners went through the country’s main ports of entry in 2010, up from 2.89 million in 2009, interim Immigration chief Ronaldo P. Ledesma said in a statement.


Data from the Manila International Airport Authority (MIAA), meanwhile, showed that the number of passengers on international flights to the country rose by 6.4% to 3.59 million last year, reversing 2009’s 6.2% slump.


International passenger traffic, or total inbound and outbound passengers, increased by 6.3% to 7.3 million people in 2010 from 6.87 million a year earlier.


"These numbers send a very clear message that the confidence of the international community in the Philippines and the government of President [Benigno S.C.] Aquino [III] is very strong," Mr. Ledesma said.


Mr. Aquino had protested publicly last November after Australia, Britain, Canada, France, New Zealand and the United States warned their citizens that a terrorist attack on the Philippines was imminent.


The Philippines has long been troubled by an Islamic militant movement engaged in bombings and kidnappings, mainly in the south of the country.


The country’s international reputation took a hit in August when a botched police rescue effort to end a bus hijacking stand-off in Manila left eight Hong Kong tourists dead.


The immigration bureau said visitor arrivals fell to 188,028 in September, amid the immediate fallout of the hostage fiasco. But it said the numbers picked up strongly to an average of nearly 230,000 visitors for each of the last three months of the year.


MIAA data supported immigration’s tally, with arrivals rising by 5.5% to 377,659 people last December from 358,055 people a year earlier.


"The figures were driven up by overseas Filipino workers in the Middle East and China who were returning home for the holidays," MIAA chief Jose Angel A. Honrado told BusinessWorld.


In a separate interview, Tourism Secretary Alberto A. Lim said last year’s controversies did not affect the Philippines’ 2010 target of 3.3 million tourists.


Mr. Lim did not elaborate but Tourism Assistant Secretary Benito Bengzon told AFP the government was optimistic that arrival numbers for 2010 would be about the same as the immigration bureau’s figures. -- with a report from AFP


http://www.abs-cbnnews.com/business/01/11/11/tourist-arrivals-19-2010-despite-scares

Reaction:

While reading this article I feel happy for our country’s tourism was not really affected by the incident that scared some foreigner. That was August last year when a tourist bus was hijacked by Ronald Mendoza, a police officer who got fired from his job. That left 8 Hong Kong national dead. This incident made warning to different countries specially the Hong Kong. But in spite of this incident, scarcity and economic world problem we are facing still the number of foreigner who went through the country’s main spots is going higher.

An increased in tourism is really big news for us Filipino’s for this will help our economy grow. The more foreigners who will come and visit our country the better it is for our country. This won’t only benefit the businessman but the entire Filipino and the foreigner who come for they have seen and witnessed how beautiful and rich our country is in resources.

As a student and a citizen of this country I myself is affected to what anything will happen to the tourism because we are talking here of the country’s tourism which I belong and this affects the economy of our country. If whatever happens to the economy the whole Philippines will be affected an increased in our necessities and fare might happen.

reaction paper: Aquino decrees fewer holidays in 2011

Diane D. Penados
BSC - MA 3D
12:25 - 1:25pm


Aquino decrees fewer holidays in 2011

MANILA, Philippines - President Benigno Aquino on Tuesday cut the number of paid holidaysnext year amid complaints from foreign business groups unhappy over mounting overtime pay.

"The point, number one, is to pay the proper respects, and number two it reduces disruptions on the economy," he told reporters after decreeing that only 16 public holidays should be observed next year, down from 21 this year.

He said the Philippines tended to go off work even when it was not observing religious holidays or the death anniversaries of heroes, such as when a regular working Friday or Monday is sandwiched between a holiday and the weekend.

Seven foreign chambers of commerce issued a report earlier last week that concluded too many holidays were forcing many potential investors to avoid the country while raising costs for employers by tens of millions of dollars.

Filipino workers had 21 public holidays this year, compared with nine in Vietnam, 11 in Singapore and 12 in Taiwan, said the study.

The business groups also took issue with the fickle and unpredictable nature of the holiday declarations, which they noted were sometimes made on very short notice, disrupting work schedules and increasing corporate costs.

Under the law, employees who are required to report to work on legal holidays must be paid double, while the rest will be paid while staying at home and producing nothing for their employers.

Aquino denied Tuesday that he had given in to the business lobby, insisting he was given three options by his advisers on how to deal with the country's many holidays.

"I chose the one that didn't disrupt our people's ability to make a living for themselves," he said.

Source: http://www.abs-cbnnews.com/business/12/21/10/aquino-decrees-fewer-holidays-2011

Fewer holidays for the year 2011 would definitely affects the tourism of the country and the production and operations of different companies. As what I have read in this article from 21 days of public holidays it will be reduced to 16 days. Last year we have a lot of holidays which was enjoyed by Filipino’s, some holidays that falls to weekdays were transferred to either Monday or Friday, this is what the previous president called as the economic holidays. 

This decree has positive and negative effects in the economy of our country. The negative is for next year the tourism may decrease due to this decree that our president has implemented and some employees will not be going anymore to beach because there will no long weekends. And for the positive effect the productions of the companies would be more productive and profitable. It will be productive because their work will go straight and be more profitable for they have many days for work than holidays as what I have learned from my teachers before Businessmen hates holidays for their production and operation will be affected and profitable in a way that the paid holidays will be cut so the company’s profit will increase.

As a student I have nothing against this new decree because this would not only benefit me but the entire Filipino. This will help our country and companies who provided our countrymen works to be more efficient for the number of days for work is longer compare to year 2010 that we had 21 paid holidays. 

chapter 6

diane d. penados

bsc - ma 3d

(sir, my answers are in bold font)

Review Questions (Chapter 6) for Econ222

1. Suppose that a regulation is in place that does not allow the price of a good to exceed $5. If this price is above the equilibrium price in the market, this would be an example of a:

a. binding price ceiling. b. not binding price ceiling. c. binding price floor. d. not binding price floor.

---

2.	Suppose that a regulation is in place that does not allow the price of a good to fall below $10. If this price is above the equilibrium price in the market, this would be an example of a: a. binding price ceiling. b. not binding price ceiling. c. binding price floor. d. not binding price floor.

---

3.	Suppose that a regulation is in place that does not allow the price of a good to exceed $5. If this price is below the equilibrium price in the market, this would be an example of a: a. binding price ceiling. b. not binding price ceiling. c. binding price floor. d. not binding price floor.

---

4.	If a price floor is in place and it is binding, the market will: a. remain in equilibrium, unaffected by the price floor. b. experience a shortage. c. experience a surplus. d. adjust its equilibrium point toward the price floor.

---

5.	If a price ceiling is in place and it is binding, the market will: a. remain in equilibrium, unaffected by the price floor. b. experience a shortage. c. experience a surplus. d. adjust its equilibrium point toward the price floor.

---

6.	If a price floor is in place and it is not binding, the market will: a. remain in equilibrium, unaffected by the price floor. b. experience a shortage. c. experience a surplus. d. adjust its equilibrium point toward the price floor.

---

7.	If a tax is imposed on buyers of a good, the ________ curve of the good will shift ________ by the amount of the tax. a. demand, upward b. demand, downward c. supply, upward d. supply, downward

---

8.	If a tax is imposed on sellers of a good, the ________ curve of the good will shift ________ by the amount of the tax. a. demand, upward b. demand, downward c. supply, upward d. supply, downward

---

9.

If a tax is imposed on a good and the incidence of the tax ends up falling more heavily on the sellers than on the buyers, this will be because: a. demand is more elastic than supply for that good. b. demand is less elastic than supply for that good. c. the tax was imposed on the buyers of the good. d. the tax was imposed on the sellers of the good.

---

10.

If a tax is imposed on a good and the incidence of the tax ends up falling more heavily on the buyers than on the sellers, this will be because: a. demand is more elastic than supply for that good. b. demand is less elastic than supply for that good. c. the tax was imposed on the buyers of the good. d. the tax was imposed on the sellers of the good.

chapter 5

DIANE D. PENADOS

BSC -  MA 3D

(SIR, MY ANSWERS ARE IN BOLD FONT)

Review Questions (Chapter 5) for Econ222

1.	A good will tend to have an inelastic demand if: a. the good has many close substitutes. b. the good is a luxury. c. the market is defined very broadly. d. the time horizon is long.

---

2.	A perfectly elastic demand is represented graphically by a: a. relatively steep demand curve. b. relatively flat demand curve. c. vertical demand curve. d. horizontal demand curve.

---

3.	What effect will an increase in the price have on Total Revenue, if demand is elastic? a. Total Revenue will increase. b. Total Revenue will decrease. c. Total Revenue will first decrease and then increase. d. Total Revenue will remain unchanged.

---

4.	The price elasticity of demand tends to be more elastic: a. at points further up and to the left along the demand curve. b. at points further down and to the right along the demand curve. c. when the demand curve becomes steeper. d. when the demand curve is vertical.

---

5.

Suppose that General Cars increases the price of its Cadiclap model from $13,500 to $16,500. As a result of this, the quantity demanded of the Cadiclap model decreases from 600,000 to 400,000 per year. Find the price elasticity of demand of the Cadiclap using the Mid-Point method. a. -3.0 b. -0.5 c. -2.0 d. -0.3

---

6.	If a firm needs to increase its Total Revenue, the firm should ________ the price, if the demand for its product is ________. a. drop, inelastic b. raise, elastic c. drop, elastic d. drop, unit elastic

---

7.	Suppose that consumers' incomes rise by 3%, and that this causes the quantity demanded for a good to increase by 4.5%. What is the income elasticity of demand? a. 1.50 b. 0.67 c. -1.50 d. -0.67

---

8.	Suppose that a good has an income elasticity of demand of -2.0. This means that the good is: a. normal. b. inferior. c. a substitute. d. a complement.

---

9.	If two goods have a cross-price elasticity of demand of -0.8. This means that these goods are: a. normal. b. inferior. c. substitutes. d. complements.

---

10.	The price of good A increases from $4.50 to $5.50. This causes the quantity demanded of good B to increase from 900 to 1100 units per month. Find the cross price elasticity of demand using the Mid-Point method. a. -1.0 b. +2.0 c. +1.0 d. -2.0

chapter 4

DIANE D. PENADOS

BSC -  MA 3D

(SIR, MY ANSWERS ARE IN BOLD FONT)

Review Questions (Chapter 4) for Econ222

1.	Which of the following is NOT a characteristic of a perfectly competitive market? a. The goods being offered for sale are all the same. b. Buyers and sellers are very numerous. c. Buyers and sellers are price takers. d. It is difficult for new firms to enter the market.

---

2.	A market with only one firm is known as a: a. complementary market. b. monopoly. c. perfectly competitive market. d. normal market.

---

3.

An increase in demand means that: a. when the price drops consumers are willing to purchase greater quantities of the good. b. consumers are willing to purchase greater quantities of the good at any given price. c. when the price rises, consumers are willing to purchase greater quantities of the good. d. consumers make the price drop by buying greater quantities of the good.

---

4.	If good B is a substitute for good A, and the price of good B increases: a. the quantity demanded of good A will decrease. b. the demand for good A will increase. c. the price of good A will tend to decrease. d. the quantity demanded of good B will increase.

---

5.	When the price of a good increases: a. the quantity supplied of the good will increase. b. the quantity supplied of the good will decrease. c. the supply curve of the good will shift to the right. d. the supply curve of the good will shift to the left.

---

6.	A new technology that helps firms reduce production costs will cause a: a. movement down and to the left along the supply curve. b. movement up and to the right along the supply curve. c. shift to the right of the supply curve. d. shift to the left of the supply curve.

---

7.	If the price in a market happens to be below equilibrium, there will be a ________ in the market, and the price will tend to ________. a. surplus, drop b. surplus, rise c. shortage, drop d. shortage, rise

---

8.	If the price in a market happens to be above equilibrium, there will be a ________ in the market, and the price will tend to ________. a. surplus, drop b. surplus, rise c. shortage, drop d. shortage, rise

---

9.

Suppose that a scientific study just published demonstrates that eating apples makes people much healthier. How will this affect the equilibrium price and quantity in the market? a. The equilibrium price will increase and the equilibrium quantity will decrease. b. The equilibrium price will decrease and the equilibrium quantity will increase. c. Both the equilibrium quantity and price will increase. d. Both the equilibrium quantity and price will decrease.

---

10.

Suppose the price of corn syrup increases. Given that corn syrup is a major ingredient in the production of soft drinks, how will this affect the equilibrium price and quantity in the soda market? a. The equilibrium price will increase and the equilibrium quantity will decrease. b. The equilibrium price will decrease and the equilibrium quantity will increase. c. Both the equilibrium quantity and price will increase. d. Both the equilibrium quantity and price will decrease.