Finals Macroeconomics.docx

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ABM AE12: APPLIED ECONOMICS

____________________

A COURSE REQUIREMENT PRESENTED TO

Jeremy Paul E. Gecolea, MBA Course Professor

By Francesca Agatha R. Euraba

March 2019

PAMANTASAN NG CABUYAO Senior High School Department Katapatan Subdivision, Brgy. Banay-Banay, City of Cabuyao, Laguna

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Cases: 1. Gross Domestic Product (GDP) is measured to see the overall production of an economy. There are three approaches in measuring it namely: (1) The Expenditure Approach, (2) The Income Approach, and (3) The Value Added Approach. Describe and explain how each of these approaches measure GDP. Based on your research, which of the three approaches is best in measuring GDP? Explain your answer comprehensively. 2. Inflation is the rate of increase in prices of commodities in an economy. It is measured through Price Indexes—Consumer (CPI) and Production (PPI). The Philippines had a 9% inflation rate in the last quarter last 2018. What are the causes of this increase in inflation? Identify at least three (3) factors and explain how each of these factors caused this increase. What is the overall outlook of inflation for the current year, 2019? 3. Investment is the lifeblood of production and businesses in an economy. The Philippine’s financial markets provide avenues for investment to take place and grow. What is the current status of the Philippine Financial Markets? Which businesses (e.g. real estate, education, food services, BPOs, etc.) are good to invest at this 2019? Identify at least three (3) businesses and explain why these investments are feasible for this coming fiscal year, 2019? 4. The Association of Southeast Asian Nations or ASEAN is promoting the ASEAN Economic Community (AEC) which aims to create a business and investment region that could rival that of the European Union (EU). What is the AEC? How does it aim to improve the economic status of the region? Identify at least five (5) investment opportunities for the Southeast Asian region? Explain these opportunities. Identify at least three (3) investment opportunities for the Philippines. Explain these opportunities.

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Case 1 The Gross Domestic Product (GDP) is every single thing that is produced, made and created within the geographic boundaries in which it does matter if it is created by a foreigner or the countrymen itself. It is usually done in a specific period of time, it is normally per annum or year, but other countries use quarterly. It is also an important indicator in the economy in which it helps to distinguish the flow of economics in a specific country. According

to

Kenton

(2019),

GDP

usually

includes

all

the

consumption of public and private, government outlays, investments, private inventories, paid-in constructions cost, and foreign balance of trade. Which constituent to the meaning mentioned above. This just means that everything that is produced and consumed in the country is computed totally without less. Another study from Kenton (2019), that GDP is the monetary value of all finished goods and services produced in the country area within a specific period of time. All the produce stuff that can be consumed is computed as a whole thing. There could be a problem in regards to doing GDP because it may have a double entry, as of that there is a solution that the government was given to its people. The solution is just to add the final value of the product itself not including the different parts of the product. For its example, our

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product is a well-known running shoe, we will just get the final value of this one, not including the separated value of the shoelace and other parts. In accordance with the study of Amadeo (2019), it states that the GDP affects mostly the lives of every person in the community. Such as the personal finance of an individual, investment of a businessman and job growth of the country. This just proves that in everything we do in this world there is a connection within the economics. In the process of investment, of course, the investors always look for the nation's growth rate to decide whether they will risk their assets, in this, they do comparisons to see the best international opportunities. The same study from Amadeo(2019), states that GDP doesn't count the environmental impact of the products produced in a certain country. It means that the cost of pollution and the cost of impact on the well-being of the person is needed for the improvement of the standard living of the human being. It just concluded that for a human being to have a better and easy life they must sacrifice the environment's value. At the same time, it does not include unpaid services which connote to its undervaluing the contribution of quality of life. Another one is it does not include the black economy of the country or the illegal activities happen in the country. Everything in this economy or market is not taxed and showed up in the government records and files. Sometimes the government estimates it but cannot actually measure accurately due to the lack of records.

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There are two types of GDP according to Kenton(2019), the first one is the Real GDP and the second one is the Nominal GDP. In the past few years, the typical prices of the products and services began to increase which eventually reflected the GDP, with this the economist come up with the two types of GDP. The first one is the Real GDP, which means that if there will be an arrival of adjustment in inflation it will be visible. The value of economic output will be considered an adjustment for the prices. It also narrows the difference between the annual output figures. There are other terms for the Real GDP, it can be called constant-price and inflationcorrected. The second one is the Nominal GDP, which ignores the inflation and the deflation rates. It is usually higher than the real GDP and used in comparing different quarters in the same year. The GDP has its own growth which also increases inflation. There will be the growth of unadjusted GDP as long as it exploits the different criteria. If they produce a huge amount with the same prices, this implies that it increase production and meet its increased demand. Some also, produce the same product with the higher prices that connotes that there will be no increase in demand. Next, is producing more with a higher price that leads to increasing demand and a shortage of the supply. They sometimes produce more at lower prices that eventually make its consumer to sustain its need. The last one is the production of a lesser number of products at much higher prices, this really increases the demand. Once the economy is booming or increasing there is also the same effect on the GDP of the country.

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In measuring the GDP of the country it helps a lot with the concern of the economy. It helps improve and know how the cycle of the economy goes with a specific period of time. There are different approaches that are used to measure the GDP of a country and they have the same results and credibility in their data. The three (3) approaches are namely the Expenditure, Income, and Value-Added Approach. The first is the expenditure approach that calculates the gross domestic products with the consumption, investment, government spending and the net exports of the country. This is the most common way in estimating the GDP of the country, it includes everything like public and private sectors. This seldom produces nominal GDP and adjusting the inflation resulting in the real GDP, it is calculated by summing up all the expenditures in a form of final product and services. In the site written by Ross (2019), the result of GDP is the same as aggregate demand because of the same formula used. The aggregate demand is used to depict the relationship between the total goods, average price and specific intervals in supplies. It also reflects the country's gross domestic product. The similarities between these two are that expenditure is the reference in spending which is the same as the demand. Technically in looking for the GDP, it is a long run while in an aggregate demand it is a short run. They become the same if in the long run after adjusting the price level.

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There are four (4) major pieces in calculating the aggregate demand noted

by

Bell

(2017),

namely;

consumption,

capital

investment,

government purchasing, and net exports. In calculating aggregate demand the consumption represents the demand for the consumer's purchases in a particular price range. The capital investment is actually the increase in interest rates and the expansion of the production as well as the upgrading of the equipment. In government spending, it refers to the number of goods and services that the government will be purchasing it and the price in the economic cycle. Last is the net exports, that can be calculated by subtracting the imports and exports in the country. The trade surplus will eventually increase its exports than imports. Kenton (2019) also added that the expenditure approach is also called the spending approach, in which it calculates all the monetary expenses of different groups that participate in the economy. This is calculated as the consumer spend his money to purchase several goods and services that eventually used by a businessman to invest or start up a business. The government also spend for the expenditures, locals and federal authorities on defense and non-defense goods and services of the country such as local services, salaries, weapons and etc., there are also different projects and services concerning to the country's citizen. The essential measures of this approach are the total sum of everything that is used up in developing finished products to be sold. Next approach is the income approach which included the categories of wages and salaries, the supplementary labor income,

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corporate profits interest, and miscellaneous investments. There are two non-income adjustments which are indirect taxes that are subsidies to add the factor cost to market prices and depreciation that is added to compute the net domestic products. It also equates the total output of the nation in the income received by the residents or the citizen of the nation. It simply equates the total products and services of the country that produces income that is received by the workers. There are four (4) factors of income including the employee interest received net to the paid interest that also helps to increase the computation of this approach. The rental incomes are also included here which the landlords reach their quotas an income. Payment for intellectual property and natural resources are beginning to be partly because it also adds to the income and range of economic cycle. Ross (2017), also added that the equation formula in solving while using this kind of approach is GDP = COE + GOS + GMI + TP & M – SP & M. W. Where this equation means actually means GDP = compensation of employees + gross operating surplus + gross mixed income + taxes fewer subsidies on production and imports. The compensation of employees includes the total monetary amount given to the worker, it is simply as the salary is given to the employees. (). The gross operating surplus is the sum of surplus in which the incorporated business is computed. (). The gross mixed income is the same as the GOS, but seldom includes the small business of its incorporators. There is also TP & M – SP & M. W in which the taxes in production are computer together with the subsidies on production and imports.

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All the sum of the first three (3) is called total factor income that is the factor of production in the society. It helps to measure the value of GDP at the same time the basic prices of the final goods and services. There is a difference between the basic prices and final prices according to Ross (2017), it is the total taxes and subsidies that the government paid in a specific production. So, in adding the taxes less the subsidies in the production and imports in GDP factor it is computed. In finalization, the income approach is calculating GDP should always be the same with the expenditure approach thus sometimes measurements create an error in a national statistical agency. Welker

(2019),

summarizes

the

income

approach

to

the

measurement of the total income earned by the household annually. Which helps in examining the circular flow model of every nation's economy it is demonstrated that every part of household income spent in the product market, taxes, savings, and import spending. There is an article written by Matthews (2012), which discusses the different approaches that are used to compute for the GDP. He defines the income approach as the total expenditures of every final goods and service. There are also 4 types of GDP that includes the two types that Kenton was mentioned. The last two are the Actual and Potential GDP, the actual GDP is the real-time measurement of every output and services produced that demonstrates the actual business economic cycle happening. Next, is the potential GDP that the ideal economic cycle that everything is stable.

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The last approach is the Value Added Approach which is more intuitive in a way of avoiding double value of intermediate in every goods and service. It does not isolate in only final goods and services but looks for the value added for each one. It is simply taking the difference of the inputs to production and the price of the output. Beggs (2019), give an example of this kind of approach, he gave a simple orange production process. The final orange juice is delivered by four (4) different producers; first is the farmer who grows the oranges, second is the manufacturer that take the oranges and eventually make it as a juice, third is the distributor who takes the orange juices and put it on the store shelves and the fourth is the grocery stores where the consumer gets it into hand. As you notice in every stage there will be a positive value added to make a higher output market value. All the added value is presented in all stages in production in where the GDP is counted. It is very helpful when considering the count of goods with the imported inputs since GDP only counts the production within the economy boarders. At the same time when you deal with goods that are not produced at the same period as a final output, it will make you distinguish the differences, following only those who are in GDP for that period. The computation of the Value Added Approach is computed as simply as the Value of Output minus Intermediate Consumption. Another definition is given by Chand (2018) that the concept of this approach is referring to the added value in the raw material to the final output. The intermediate consumption, on the other hand, is the use of intermediate

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goods in the production process, like flour for the baker. While the Value of output refers to all the market value of all goods and services that are produced in a period of one year. Among all the three (3) approaches that are used in measuring the GDP, the Expenditure Approach is the most used in estimating GDP globally. Given that it combines all the consumption, investment, government spending and net exports it just typically have everything that could help to get the exact amount of GDP in the country. It also gives all the information regarding the private sectors, includes the consumer and private firms. Also, the government spending that is used in the border of the country is computed. The equation of this approach is more distinguishable and explains broadly and specific the different economic parts of the nation building. There are also a lot of users of this kind of approach almost every country around the world is using this because it gives more concrete estimation and computation for the GDP. The four main aggregates of this approach also help to make the computation understandable and learnable for each and every one that wants to know how this computation is processed. Nothing is perfect so that sometimes this computation does not meet its terms because of lack of files data but in comparing from other approaches this give a clearer way in computing and estimating the GDP of the country. As the same note from Ross (2017), the expenditure approach usually attempts in calculating GDP by evaluating all the final goods and services purchased in the economy. The computation of the expenditure approach

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is calculated as Y= C+ I + G +(X – M), which is the equation representation of GDP in this kind of approach. In this equation the Y is identified as the GDP, the C is the consumption that is normally the biggest component in the economy, it basically consists of private expenditures like household expenditures. It may fall in the personal expenditure that has a category of durable goods, non-durable goods, and services. I, on the other hand, is the investment, like investing in the equipment's and does not include the existing assets. Investment can also be the purchasing of new real estates, it is not just all about purchasing new goods but also saving in monetary terms. G is the government spending, it is the sum of all the expenditures of the government that includes all the salaries of the government agencies workers and the projects provided by local officials. All the transfer payments are not included in this part of computation because they are considered in the consumption part. The X represents the total gross exports where the products and services produced in the country are exported to the other nations. Last is the M or the imports that are the total gross imports in the country, it is usually subtracted since they can be included in other terms. There are different downsides of this approach but technically the number one is the lack of data in illegal transactions done in the country. There are no specific and concrete data for this, so that, even other approaches didn't have the same data. In comparison to the income approach, it measures the total earnings of a household while expenditure is the total amount spent on goods for the whole year. In the value-added approach, it is about adding

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value based on the processes it meets along the way. In conclusion, the expenditure approach is the best way in computing the GDP especially when you have all the data regarding the expenses that have been done for the whole period or the whole year. This also helps in critical computation especially for the nation's Gross Domestic Product that is used by some investors and businesses in the country.

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CASE 2 Inflation is the overall rise of prices in goods and services provided by the economy over the period of time. The increase includes basic commodities, the housing and other goods and services that are produced by the manufacturers or such. If the prices increase for a few several products it cannot be called inflation because inflation is only computed if a lot of products and services increase its prices. It can be measured in different ways like the GDP Deflator that is a broad index of inflation in the economy run, Consumer Price Index that measures the price level in each basket of the consumer products every month, and PCE Price Index that measures inflation in the basket of goods in every household. Moneycrashers.com, a website offers various economic definitions and data defines inflation as a long term rise of goods and services caused by the decreasing value of the country's currency. It also arises when it is not adequate to match people's income. If the salaries or income of each household does not increase along with the prices of commodities and services, the purchasing power of each household will decrease and can lead to an unstable and slow economy. They also give ten (10) strategy to combat the effect of inflation in today's generation. One is to invest in long-term that can help in saving and earning interest at the same time. Two is the investment in commodities that will be forever in demand and will surely act as a superior brand in the near future. Three is to invest in gold and metals that will have an inherited value

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that will make them immune to inflation. Four is the investment on the real estate which is seldom called a real asset, always remember that land does not depreciate only appreciate. Five, consider Treasury Inflation Protected Securities (TIPS) that will return your original investment along with the percentage of inflation happen. Six is to stick with equities this means to invest in bonds and stock markets that will eventually result in higher income to company and investor. Seven is to consider dividend pays because it always increases at an annual basis that can guarantee to the stock appreciation in offering further benefits. Eight, save more the easiest and proactive way to ensure your ability to fund a comfortable life soon. Nine, invest collectibles this is present in buying and selling the business in which you earn a profit by adding interest to a specific product. Ten is to remember all of this and use for future needs. The website also added that there could be so-called healthy inflation, it is considered to rise approximately for about two (2) to three (3) percent every year. Unfortunately, the main goal of this inflation is to outpace the growth of the economy by a smaller amount every year. This kind of healthy inflation is considered positive data that leads to increasing household income, profitability, and capital flows in a growing economy. It also encourages the consumer to consume products that will further help the economy and create more jobs. Another website that truly gives an informative data in regards to the economy is the economic.help.org, it gives two (2) types of inflation which are distinguished by the economist. The two (2) types are called Demand-

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Pull inflation and Cost-Push inflation, both this type triggers to increase the total market price in the country. Demand-Pull inflation occurs when the fast demand for goods and services in the country rises rapidly compared to the economy's productive capacity. The rapid increase of the productive capacity in the country may be the result if the central bank has an overflowing supply of money which can lead to an increase in the goods and services. While the Cost-Push inflation is when the prices of production process inputs increase, this includes the rising of raw material prices or a sharp rise of oil in the world market. Eventually, the high cost of production leads to a decrease in aggregate supply and an increase in an overall price level. In computing for the inflation in the economy, it's more complex and dynamic. In an article written by Bartolome (2018), it specifies that inflation is the general increase of consumable goods and services. At the same time, the computation is always base on CPI that helps in measuring the average value of the standard basket of goods in every household monthly. The rate of the CPI may connect to the changes in inflation, there are different contributors to rapid inflation increase it may include the gas, electrical energy and many more. She also added that once the inflation rises the value of Philippine peso becomes lower that may result for them to buy a lesser product with the same amount. In connecting with the article mentioned above according to Francis (2017), that the value of the currency in every country decreases once the inflation increases rapidly. The inflation and price itself have a direct

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relationship when the inflation increase automatically it will reflect the prices in the market. The economy have a decreasing buying power in terms of goods and service. Typically, this is a sign which the currency isn't worth value like the previous value. Once the value of the currency is usually set by the market forces, it will depreciate in the value of foreign exchange markets. Next is if the value of the currency is handled by the government, the value will lead to the draining of the government's foreign exchange reserves and will be forced to respond in devaluing the currency. There are some cases that don't agree with the terms above. In the case of China, its economy is rising rapidly since the 2000s. Normally, when the country's economy grows the value of its currency usually appreciates, but the government of China prevented this to happen because of some policies and methods that are highly followed. In the bad side of this case, the purchasing power of the people doesn't increase because their currency value doesn't increase also. Their society responded by demanding higher wages but at the same time, the prices of their goods also increase. There is a statement by Amadeo (2018), that when the price rises there will be expected inflation which motivates the consumer to spend more to avoid the future increase of the market prices. This just focus that when the inflation rises into a small percent, it is good and can help the economy to grow and enhance more. Also, the growing economy leads to a decreasing number of jobless people so those who have jobs become confident and efficient in terms of work progress.

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Recently, the Philippines experience a sudden increase in inflation for about 9% in the late quarter of 2018. In an article by rappler.com, a website that produces different current news locally and internationally it says that Filipino's started to tight squeeze their pockets because of the sudden jump of commodities and other prices. On the other hand, Bangko Sentral ng Pilipinas (BSP) suddenly raised its interest rates because its role is to mandate in maintaining stable prices in promoting sustainable economic growth and value of money. And with the interest rates were calibrated to help the economy. In the survey conducted by TheNerve, it shows that 46 percent of the respondents are feelingly worse in 2018 because of the higher prices of necessities especially those that are basic and everyday needs. They also don't have an increase in their pay checks and they only buy basic needs for their family's consumption. The small business owners also see that the production volume and the income just stayed or most likely down compare from last year data. Also, the number of bank loaners increase because it potentially helps the respondents to somehow adjust in the sudden happening. There are different causes why inflation suddenly arises base on the moneycrashers website. It states that there are five (5) reasons why it increases, it includes the money supply, national debt, demand-pull effect, cost-push effect, and the exchange rates. With the different examples given by the website, it gives people more concrete idea in regards to inflation. The different causes may vary depending on the situation

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happening in a specific country. In the Philippines, it may change because of some undetermined circumstances. The first cause is the money supply since the gold is not only the standard in determining the amount of currency of the country the perception of the public in the value of money circulates. During the early centuries the gold is the only standard used to determine the currency and after years of modernization of the industrialized country, it changes. Most likely the public perception of value in the currency can affect it big time like it can be devalued. This evaluation process can force the prices to rise due to the less worthy of the currency. The process of this money supply is like how the antique collectors value the antique stuff, the rarer the item is the more valuable it is. This goes the same logic with the currency, the less the currency it exists in the money supply, the more valuable it could be. On the other hand, the large number of monetarist economist believes that the federal reserve of the country will not be able to control the money supply directly but it may grow and rate faster than the expected. This belief eventually drives up the prices recently in the market. Also, those countries who experience a slow rate of 5 percent in their money supply also experience low inflation rates. So this statement is just implementing about the faster the growth of the money supply is, the faster the increase in inflation. According to manilastandard.net the country who experience rapid inflation rate also experience the rapid monetary expansion. In past time the relationship between the two always have a consistent relationship of

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all economic factor.

This also suggests the economic progress of the

country will always be determined by the monetary policies has been constantly shifting between the monetary expansion and contraction. Once the monetary authority expands it will generally push the interest rates too low, that will result in current investment and economic boon. The investors will be attracted but will not be sustainable for a long period of time. The second cause is the approval and implementation of Tax Reform for Acceleration and Inclusion (TRAIN) Law. This was implemented in the first day of the year 2018, where it is the first ever package of Comprehensive Tax Reform Program (CTRP) that was held by the administration of President Duterte that envisioned to correct the tax system in the country to make it more fairer and efficient. It is also designed to distribute the gains to poor families. This also includes in the funding of more infrastructure and social services that were provided by the government to eradicate extreme poverty. In the article by Abrea (2018), the TRAIN law also lowering the personal income tax for about 8 percent, this makes the minimum wage earners take home a bigger amount for their families. Under this law, those who are self-employed and professionals are permitted to benefit themselves in the 8 percent in every individual pay assessment and rate charge. It will be accessible to those whose gross deals don't surpass the VAT limit.

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The TRAIN Law changes many things in regards to paying taxes in an article written by Gialogo(2018), the following are the different taxes that changed; Reduced Taxes Personal Income Tax Workers with annual pay of P250,000 or less will be excluded from the pay of charge. Those with an assessable salary of above P250,000 will be liable to pay the rate of 20% to 35% compelling 2018, and 15% to 35% viable 2023.

Estate Tax The tax rate was additionally changed from 5% to 32% of the net estate to a flat level rate of 6%. Also, the deductions were also allowed in computing the following.

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Donors Tax The donor’s duty rate was likewise amended to a single rate of 6% without the connection between the contributor and the doner. In the old law, the rates of donor’s duty were taxed by 2% to 15% if the contributor and donor are connected, and 30% if otherwise. Nonetheless, the donation of real property is currently subject to Documentary Stamp of Php 15.00 for each Php 1,000.00. Value Added Tax There are different amendment done by the law, first is the increase to VAT threshold from Php. 1,919,500.00 to Php. 3,000,000.00. The sales of drugs and other medication for diabetes, high cholesterol, and hypertension will be soon exempted to VAT. There is also an increase in the VAT exemption for the residential unit from Php. 12,800.00 to Php. 15,000.00. Also, the association duties like membership fees, homeowners association, and Condominium Corporation were express as VAT exempt. New Taxes Sweetened Beverages

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Non-essential Services Those who have cosmetic procedures that improve, altering or enhancing the personal appearance is now subjected to about 5 percent. PCSO Winnings Already, PCSO rewards, regardless of amount, were already excluded from the expense. Unfortunately, this law subjects PCSO winners to give a 20 percent if their winnings extent to Php. 10,000.00 Increase Taxes Passive Income

TRAIN forces higher taxes on some passive income, including premium pay from the dollar and other remote cash stores. There is likewise a critical increase in significant taxes on sale especially the offering of stocks.

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Excise Tax TRAIN imposes higher extract imposes on cigarettes, fabricated oils (oil based goods), mineral items and cars. Cigarettes

Automobiles

Those that are hybrid vehicles are imposed to pay for 50 percent of the applicable excise taxes but those electric and pick-up vehicles are exempted.

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Manufactured oils and other products

Documentary Stamp Tax There was no change in the rates of the stamp but increases those that are taxable documents.

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TRAIN actually contribute a high percentage in the recent jump of inflation. Punongbayan (2018), said that the increase of products like petroleum, automobiles, and sugar-sweet beverages are because of the new excise tax that has been approved. These new excise tax has been around the economy and raises inflation. Some of the opportunistic

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businessmen use this as an excuse to charge price increase above the normal profits. The Department of Finance (DOF) recently revealed the breakdown of the factors in the high inflation rate. Almost 26.70 percent was because of the TRAINS excise taxes, 46.70 percent was because of the profiteering of business people. The third cause is the national debt, the constant expanding of the nation's national obligation will eventually prompt the expanding increase of inflation. Any technique the country takes to battle a rising national obligation can at last lead to higher inflation. The primary system for diminishing the national obligation is to build a bigger charge income. Companies must earn cash for investors, so they are probably going to respond to higher duty rates by raising costs on their products and ventures. Higher valued products and ventures result in higher inflation. The second methodology for diminishing the national obligation is to build the cash supply, utilizing this cash to satisfy the current obligation, yet this can likewise prompt inflation as the higher supply of cash makes every individual unit of money worthless. There are two techniques mentioned above to decrease the national debt. First is to raise taxes and second is to print more money to pay a debt. Unfortunately, the second technique will worsen the situation because it will make the currency decrease its worth over the dollar. However, the first technique will just make product prices higher and eventually cause a higher inflation rate.

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In the article in Philstar.com, the Philippines debt rose for about Php. 27.4 billion to Php. 7.043 trillion due to the net availments on the both domestic and foreign obligation. The total debt stock for about 34.68 percent was from foreign creditors while 65.32 were borrowed domestically. The government borrowed from local and foreign sources to fund every budget deficit in the local projects and services. Recently, the Philippine government borrowed almost $167 billion dollars to be spent in the infrastructure to be built in Duterte's administration with a slogan of ‘Build! Build! Build!' It would definitely increase the government debt from $123 billion to $ 290 billion but does not include the interest rate of China.

The Money Enigma is a website which gives a new perspective in regards to money and inflation. It states that the government has an obligation to carry out the recent inflation growth rate. In a more specific term, market sustainability over debt and deficits has a direct impact on the market value. Cash has been a long-span value instrument output of

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the society. If the debt accumulates to the point that it will be unsustainable, the market will begin the discount, higher monetary base and upward pressure to the prices. With these circumstances, the national bank may rapidly end up in becoming impotent against its fight to inflation and loses its control to long-term expectations.

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Case 3 Investment is an asset in which it is used in acquiring a specific goal in generating income. It is actually purchasing it for the future to create an interest of such that could make the amount bigger as the time goes by. According to Chen (2018), in the economic sense the investment is a purchase of goods that are not consumed in the present but are used in the future to create wealth. On the other hand base on finance, it is a monetary asset in which it is purchased with thinking that it will provide an income in future or later behold at a higher value from its original value. The term of investment also includes the purchases of bonds, stocks and real estates that considered as real assets, this kind of assets usually increase its value after times. According to the Philippine Stock Exchange, the investment is a vehicle which the funds can be placed with expectation in generating positive income. The investment also adds to the economic growth of the country. According to investopedia.com when a company usually requires a business this allows to increase the production base that will help the economic growth increase compare to the previous years. One of the most known types of investment is a bank investment in which provide services to assist an individual or a company in their associate wealth. They also added that investment is intent on holding the assets for long term time, they look into building their assets in their portfolio for a long period of time. Another definition of investment was given by Acidre (2019), that investment is a purchased item that somehow identifies by a buyer as

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something that will appreciate its value after time or be sold at a higher price. It somehow looks like a passive income that the owner may create wealth or income over time. Finra.org is actually a website that gives various types of investments that will help you achieve the financial goals you want. Every type of investment has its own primary set of features and risk factors. The different types of investments are stocks, bonds, investment funds, bank products, options, annuities, and insurance. 

Stocks are the shares of the company, which means if you buy it you have already a part of that company.

It is usually broad and

describes as the company's size, type, performance during market cycles and for the short and long-term growth of the organization or company. 

Bonds are the types of loan that makes investor gain profit by an exchange for the interest payment. It also specified in terms of the repayment of principals at the bonds maturity rates.



Investment Funds examples are mutual funds, closed-end funds, and exchange-traded funds, the choice of yours depends on the specific investment strategy you are looking for. It can offer diversification, professional management and a wide variety of strategies and styles.



Bank Products are those that provide a safe and convenient way in accumulating the saving you earned which sometimes helps you in

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managing your money. The different accounts in the bank offer services that can help in liquidation and flexibility of your account. 

Options are the contracts that give a right to a purchaser that is not an obligation in buying or selling a security, like stocks or exchangetraded fund in a specified price within a specific period of time.



Annuities are contracts between you and to the insurance company, in which the insurance company promises to make payments periodically, either starting immediately that is called immediate annuity or either some future time it is called a deferred annuity.



Insurance is products that come in different forms, it includes term life, whole life, and universal life policies. There also are given variations on the different variable life insurance and variable universal life which are likely considered as securities. Financial Market is a place where the transactions of trades of a

financial securities exchange. This includes the future options in a low transaction cost that includes the securities of bonds, precious metals, and stocks. From the word itself market which is used for exchange it could be barter or in monetary trades. The investopedia.com describe the financial market as a broad term in a market place where the trading of securities that includes equities, bonds currencies and derivatives occurred. Somehow it does not indicate the true value of stocks because of macroeconomic force. However, the

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prices of securities have transparency to ensure the efficient and correct prices set by the market. According to Kenton (2018), there are different types of financial markets that helps future investors to distinguish them in a more specific manner. Types of financial markets are over-the-counter markets, the financial market for funds, money market, derivatives market, and forex market. 

Over-the-counter markets are also called secondary markets and mostly handles exchanging of the publicly listed companies. Their market is usually smaller as it requires less regulation and less expensive transactions.



Financial Markets for Bonds handles the securities in which an investor loans for a specific period of time with an amounted interest. Bonds were not only released in a corporation but it may also release by municipalities, states, and the federal government.



Money Markets are markets that trade high liquidity and short-term maturities. Its intention is to make short-term borrowing and lending securities with maturity within the year.



Derivatives Market are markets that trade securities that come from the underlying assets. The price of this contract usually determined by the amount in the market of the underlying item.

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

Forex Markets is where the currencies were traded. It is the most liquid market because of the cash revolving here. The Philippine market has its rocky start in 2014 base on the website

of assetmanagement.com. It is because of the US Federal Reserve started tapering the bond-buying program after the recovery of the US economy. At the same time, the foreign investors decided to sell the emerging market securities in the developing market of US and Europe securities. Philippines has the one of the highest GDP in Asia by that time and with that fundamental strong economy, it recovers from the 2014's shaky beginning.

In the article of Abadilla(2015), it says that the stock market of the Philippines falls and lost its value for about 764.44 billion pesos. It is a massive decline in the global financial market that triggers and concern the

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economy with a slump in commodity prices. The peso by that time depreciates as its lowest point for about 31.2 centavos.

Worldbank.org updated the economic progress of the Philippines in 2016 and it says that our country remained strong in the region despite small global growth. Also, the poverty reduction is maintained relatively with high economic growth and more positive job trends even the shocks in agriculture. In an article written by Dela Paz(2017), the Philippine stocks hit the 14th time main index closed and gained 25.1 for the whole year alone. For the past 6 months of this year, the peso gained and lowering the full year depreciation to the currency.

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For the year of 2018, the stocks were moving like a pendulum because it swings into low levels and sometimes record-highs. The peso versus dollars become strong at the beginning of the year and close with the higher amount with the same year. In terms of exports, we gained negative because it helps weakening the peso and the way we can do this is to purchase less from abroad. Also, some analyst encourages the investors to look for other possible placement beside from the stocks. They give other options like bonds, government securities, and dollar accounts. In order for you to make sure that your money will grow and benefit in future time, you need to start investing in a business that you like and love. Aside from those feelings, you also need to have intuitive to choose what business or investment could give you a higher profit. Base on my research from different website these are the three (3) business that will be highly

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feasible for this year, 2019. These 3 businesses are the real estate, food industry, and e-commerce industry. Real Estate is a property that is comprised of land and structures, together with that it is considered as a real asset. The land assets are not just the value of land but it also adds the yields, minerals and everything that is comprised in that area. The balance.com also define the real estate as property, land, buildings, and air rights above land and underground rights below land. It means that everything that the land you own has is everything you own too with right and everything. The term real estate means true with physical evidence. It may be utilized for business purposes like working store or an office, mechanical purposes such in working in mines or processing plant and the most recognize sort of land, it may be private land that is used for lodging. Amadeo (2019), categorize the real estate in 4 types which are the residential real estate, commercial real estate, industrial real estate and land. This four type helps to determine what kind of business you will enter or even all of it. The four types are: 

Residential Real Estate includes the incorporators newly developed and resale homes. The well-recognized classification of this type is single-family homes. This actually includes the apartment suites, townhouse, country estates, multi-generational, duplexes, tripledeckers, quadplexes, and high-value homes. It is developed for the people to live on not to make it as a commercial or an industrial area. There is the difference within the law concerning on this.

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Base on Bankrate.com it is often the most important financial investment to a person to own land and the value of real property on it. With the increasing number of the population, the residential real estate is such a good investment because of its increasing value after time. Due to its increasing value, some people purchase and later on sell it at higher prices to make money or either leasing or making it as a renting house. Those who purchase land for the first time they usually buy their house in a loan or credit form. It just goes with the thought the more the house is satisfactory, the greater value it gains. 

Commercial Real Estates it is usually those who want to enter a business that will have a continuous income. It includes shopping centers, strip malls, medical buildings, educational buildings, hotels, and offices. Also, apartment buildings like condominiums are also part of this because it is made to owned and produce income.



Industrial Real Estate includes the manufacturing structures, buildings, and property, it includes the stockrooms and warehouses. Some

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structures are used to utilize the research, production, storage and the distribution of goods. 

Lands is the vacant lands, working farms and the ranches. It is usually categorized as the subcategories because of its undeveloped, early development, subdivision site where the land broker transaction happens. With this, the Philippines have been one of the hotspots for foreigners

in terms of property buying in Asia. According to asiapropertyhq.com, the favorable and outstanding demographics of the country makes it more attractive to the consumer especially it affordability in terms of different aspects. The market in real estate in the Philippines has boomed in the past years, this follows the path of the country's strong economic growth since 2010. At this same time, it agrees to the thought that the land never depreciates it only appreciates. The website also overviewed what will happen in the real estate industry for the year 2019, it will be bright because the value of the land increases over time. In the recent graphs, figures and trends, it may result that the Manila area could be one of the best locations to invest in real estate especially in Southeast Asia. In the Retalk Asia website, it distinguishes the 5 trends that define what happened to the real estate in 2018. With this trend, the Philippines continued to see the growth within the real estate industry. As the property cost inside the Metro Manila started to flood and the land becomes limited, they are looking for provincial zones that will make a good reflection of a global trend. The five are the investment of East Asia, BPO expansion in the

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region, a rise of collaboration: Co-working, Co-living, and pop-ups, more room for growth in tourism and Retail driving logistic. Base on the market statistic, the previous trends of the leading real estate industries in the Philippines remains as an attractive spot in real estate investment in 2019. The value is increasing, which depicts the high demand and the growth of the market that makes it sustainable. The different key drivers of the continuous success of this industries are the increasing interest from foreign companies, Chinese investors, an increase to the purchasing power of locals and the increasingly more remittance of money from overseas or Overseas Filipino Workers (OFW). In an article from business.inquirer.net, the Philippines real estate is forecasted to maintain its growth which adds to the fact that it is a good kind of investment for the year. All of the data gathered is based on the research of industry leader JLL. It says that the upward trend of real estates is because of the factors like hospitality, office, residential and retail. Food is a very essential part of every human life, this is how every one of us grown but how this food being process does and eventually goes to us. Food Industries are comprised of complex activities that pertain to supply, consumption and catering of foods. A diverse collection of business supplies that are consumed by people all around the world. It covers all the aspect of food production that includes crops and livestock, food processing, packaging and labeling, and many more. It is also concerned in processing preparing, preserving, distributing and serving foods and

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beverages. The finished products and partially prepared ones are found and process in this industry. According to the New World Encyclopedia, the food industry covers a wide range of areas such as the following; 

Agriculture



Food Processing



Wholesale and Distribution



Retail



Food Industry Technology



Marketing



Regulation The demand and supply are the drivers of the food industry

according to economywatch.com. It says that the number of factors that heightened the demand in overall food industry such as the population growth, wealth distribution, health awareness and various types of lifestyle. The drivers also include the quality of supply chains, the competition within the area and the composition of your target consumers. The rising prices of agricultural and normal commodities force the food processors to increase the prices. Recently the food industry become has turned out to be very different, in this the creation of new and innovative products are needed.

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According to ifexphilippines.com, in the Philippines, the retail sectors starts to have a rapid modernization for the recent years and also the expansion of the Philippines food retail industry has led to the increase of the national supermarkets throughout the country. The improved distribution system allows better storage and offers superior qualities of products that increase the demand of the consumers. The retails chains usually gives opportunities for everything that makes fast product turnover, growth, and wide market base. For the food services, the growing demand for convenience led to the expansion of different food industries around the country. The fullservice restaurants and fast-food chains have been growing but the competition in this segment is keen. There should be a continuous and innovative idea that will excite and attract customers. Almost half of the total output of the country's manufacturing is on food industries, around 2324% or annual GDP. As in 2016, our country is the second fastest manufacturing in the whole ASEAN nation. Many organization chooses the Philippines because of its low production cost that is considered lowest in the whole of Asia. With that, it is a good type of business and investment because food will never be out of the way. It is the primary commodity of everyone. Food never gets old it just needs to be innovated. The demand for food is increasing as time goes by because of the increasing population. The modernization will still continue after time and the overview for the following years, it will increase which will make future investors attracted and excited.

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Once your business is a primary commodity for everyone you will surely gain profit. The e-commerce industry is a process in buying and selling by an electronic means, it is subjected to application and websites that are connected to the internet. The huge increase of popularity for the past few decades makes this one of the best business or investment for the upcoming years. It actually replaces the traditional ways of buying products you needed. It is one of the most convenient ways of modern shopping. It actually helps you to do buying and selling the products worldwide and 24/7. The e-commerce according to e-commerce platforms is not only about online selling and buying, but it also includes the online auction sites, internet banking, online reservation and many more. After decades of performing e-commerce, its growth expanded globally and the sales can be transacted with the use of mobile phones. As the internet becomes popular and becomes part of everyday routine globally the acceptance and growth of e-commerce continue. The starting of the business has never been easy but as time goes by, many discoveries have made to make people live easy and at ease. There are many possibilities in e-commerce and it is actually a good place to invest. The following are the characteristics of e-commerce; 

Always open- this makes it unique because you can look on the product you want all the time. There is no limit in business hours. A huge convenience it gives its customers and an excellent opportunity for its merchants.

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

Cost Savings- they have a lower operating cost compare to the physical stores. You don't need to pay for rent and staffs that make it very competitive on price and increases the market share.



Automated Inventory Management- there's no need to pay for management in operating inventory on your business. You can easily check and monitor everything in your business or personal entities.



Location Independence- it can be used everywhere as long as you have internet and mobile phones or laptop. The Philippines became the second large and rapidly developing

country for the e-commerce market. With the continuous improvement of technology, e-commerce also increase.

Base on aseanup.com the

Philippines e-commerce market revenue is about US $840 million in 2018 and an annual rate of 12%. It is expected to increase to about $1,322 million by 2022.

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This just makes an e-commerce a good and efficient business to invest with. In an article by CNN Philippines,

it seems like the PH e-

commerce will grow more in the upcoming years because of the number of users in social media and amount of time spent online This makes the Philippines as an ideal place for this type of business or industry. Overall in choosing a business or industry you want to enter, you first need to do research and check the available facts. This will help you choose the best according to the facts you get or either you're intuitive. Also, the growth of your chosen business is important to see how it grow furthermore in future time.

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Case 4 Association of South East Asia Nation (ASEAN) is an organization that was established on August 8, 1967. Its purposes are to accelerate the economic development, social advancement, cultural development, promote peace and justice, provide assistance to different regions, collaborate effectively, and to maintain the closeness and beneficial cooperation with each other. It also maintains the global network alliances and partnership that involves numerous international affairs and diplomatic mission in the world. There are different programs that ASEAN created under them in order to create a more diverse and developed region. According to asean.org, the original and the only direct website of the ASEAN organization, one of their program is the making the ASEAN Economic Community (AEC) successful and stable. AEC or ASEAN Economic Community goal is to have an integrated economic region. It envisions that ASEAN will be a single market and production base with a highly competitive region that has an equitable economic development and fully integrated global economy. At the same time, it will be defined as a sovereign movement of goods, services, and investments as well as an independent flow of capital and skills. With the coordination of the trades and investment policies, and as a rules-based organization will be strengthened and become more interesting as a single investment destination.

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The AEC was developed because of the mandated creation of the ASEAN Free Trade Area (AFTA) way back to 1992. During the year of 2003, different nations leader agree on building the momentum and the progress it gained and efforts of different country's to broaden and deepen the cooperation between the regions. This makes the different ASEAN Region maximize the opportunities for the mutual benefits of different integration. There are called three (3) pillars of ASEAN Community and the two (2) are the Political-Security Community and Socio-Cultural Community. Base on their website, it says the AEC undergoes in a different process in order to gain what it is right now, this includes the related agreements, related programs, benefitting from the AEC, enabling measures, and economically competitive region. Related Agreements They have agreed to various agreements in terms of supporting the AEC program.

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The following agreement in AEC aims to: 

Encourage the different development of products, services, investment, capital, and skills,



An increment trade and venture among the region.



Promote and expand the local production sharing and network



Promote advance and more elevated level of transparency and predictability.

Related Programs In order to promote the investment venture, ASEAN launched different projects like ASEAN Investment Website (AIW) that features the viability of the area as an investment location. Also, the initiatives in relation to the enhancement of the trade will allow the traders to submit their documents in a specific place through electronics. They also pursuing to ensure food safety and securities at the same time the climate change. ASEAN Integrated Food Security (AIFS) promotes the development of sustainable

food

production

through

agricultural

infrastructure

improvements, adoption of new technologies, etc. Benefitting from the AEC In accomplishing the aims and goal of AEC it means that the superior venture atmosphere in the ASEAN Region improved. It usually encourages in the execution of exchange, services, investment, and other fundamental changes in every ASEAN region, in this way it improves the country’s location offers.

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Enabling measures ASEAN has developed into a guaranteed superior that empowers the condition of investors in the region. It has already evolving to move towards having a standard base and classifying its estimates that would oversee how the direct trade and investment do in the free-flowing of good, services, investment, capital, and skills. Competitive Economic Region The AEC envisions that the ASEAN will focus on financial aspect like its competitive economic region benefiting not only through its investors but also to its customers. This just ASEAN commit to pursuing not only region agreements, work plans, and programs but it also covers the relevant national laws and policies. Recently there are many significant developments as the AEC was implemented this includes the fair competition in the culture, more efficient and integrated network of transportation, and energy securities. In explaining the fair competition in the culture, the five (5) countries that the region of ASEAN consists of Indonesia, Malaysia, Singapore, Thailand, and Viet Nam-have implemented their separate Competition Policy Law (CPL). While the Philippines is yet to present the challenged law, it has built up an office for competition under the Department of Justice (DOJ). Defining the CPL it is the relied upon part on playing in the field and cultivating the culture of business rivalry.

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The AEC points in giving an improvement of the financial status in the area and it is made out of the following; 

A continues progressive open market, with most intra-territorial taxes wiped out, and formal limitations in the administration's area evacuated



Lowering the exchange costs because of the improved cross-outskirt exchanging forms



An increasingly appealing investment on routine, and a more business-accommodating condition, with the appropriation of normal systems and guidelines



More noteworthy portability of gifted work



Better availability of transport and framework. The AEC's also envision that for the following nine years it will spread

out in the AEC Plan 2025 that incorporates the accompanying: 

An exceedingly incorporated and strong economy



A focused, creative, and dynamic ASEAN



Improved availability and sectorial collaboration



A flexible, comprehensive, individuals situated and individuals focused area



A worldwide ASEAN. There are different investments for the Southeast Asia Nation

according to asean.org.ph it includes the following;

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Information-technology companies in high-income ASEAN countries can transfer advance and proprietary technologies without risk to their Intellectual property (for validation with ASEC)



SMEs in the creative industries can leverage on their cultural and artistic creativity for increased commercialization



A businessman in ASEAN can easily transport cargoes from point A to point B in the region because of the ASEAN Highway Network



Investors can easily link with neighbouring Northeast and South Asian countries through the Singapore-Kunming Rail Link



Businesses can take advantage of the opening up and development of remote towns for tourism purposes



Energy-dependent investments such as those in manufacturing can have secure, sustainable, and lower energy cost once the TransASEAN Gas Pipeline and ASEAN Power Grid are developed



The private sector will have to increased opportunities for involvement in the energy and mining sector in terms of investments, financing, and technology transfer



Retail companies such as supermarkets can offer the market a wider range of products and may even consider creating ASEAN isles



Exporters in ASEAN such as furniture and jewelry makers can diversify their markets and manage business risks

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SMEs in supporting industries can more easily integrate themselves into the regional supply chain and global economy



Large multinationals doing business in ASEAN have wider options in selecting regional hubs and marketing offices Overall there are at least five (5) best investment that can create big

opportunities in Southeast Asia Nation, it comes with the; 1. Technology Technology has been a continuous development over the years due to the rapid changes in demand, needs and wants of the users. From a small to a big venture of business the technology was used for innovation and at ease works. Also, the technology helps businesses to decrease the risk factors that could make a big downfall to the company. The top companies internationally and locally are using strong technology to protect their private data that use in producing a one of a kind product. According to forbes.com, there is three (3) reason why all companies must invest in the technology especially in the Southeast Asia nation that is starting to boom their economic growth. First, it is worth overhead, it means its implementation is not that much expensive compared to others that cause the companies big time. Second, software development in the improvement of business, the impact of the new technology has created popularity and make people for efficient and productive. Third, is it makes a better interaction with the customers, you can easily interact and

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connect to your customer that makes the connection between the two of you become well. There are the different profound impact that technology has done in our everyday living so it is an opportunity and has no exception in democratizing the investment world. It offers investors a lot of opportunities and it offers a lot of returns to its investors. Those strong returns began to be the foundation of a promising and emerging huge splash in the economy. In accordance with fool.com, it says that the technology offers different opportunities in terms of stocks for both new and experienced investors. It also a place where a normal person can jump in the emerging of the technology that will be an experience and belief in the future. The technology space offers opportunities for both growth investors and income investors, who can choose from several mature, established companies. Of course, because this is a sector that's rapidly developing, there's some growth opportunity even in mature companies. Technology has been a wide and an emerging term because of it's far beyond expanding in terms of tech stocks, computer companies. These businesses operate in a variety of other segments that are all part of the technology market, including but not limited to

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Artificial intelligence (AI) This is where computers perform errands that might have traditionally require a human mind. Simulated intelligence in somehow incorporated with the profound realizing and a PC’s that will be explicitly customized. Smartphones There are lots of secondary players that are making components, software, apps, and phones. The smartphone is a sort of a catch-all name for handsets products that can run apps, programs, and nearly anything else a computer might be able to do. Block chain It has gotten a big value of publicity because of its technology like bit coin and virtual currencies, it is more than that called payment method. According to Williams (2018), block chain is "the digital, distributed, and decentralized ledger tethered to most crypto currencies that are responsible for recording all transactions without the need for a financial intermediary. In other words, it's a transparent and unchanging log of all transactions that don't involve banks acting as a third party. Computers and software These are the companies that create laptops, desktops, and tablets, and the software that runs in their system. It also includes the part like the component players like Intel and Advanced Micro Devices, which make

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the chips and processors that power computers, but also bigger well-known brands like Apple. The internet Many of these are at least partially supported by advertising revenue, though some sell subscriptions and monetize in other ways. They produce internet advertising that gives a more affordable way of advertising the products. At the same time the network of devices connected to each other and the areas the public internet that allows for links. It's everything from a smart thermostat that can adjust the temperature in your home to complex medical equipment that can order its own repairs. Streaming Media The example of this is the Netflix that become an entertainment company, but it's also a technology company that has created its own infrastructure. Netflix creates content for its streaming platform, but it also creates and maintains the platform itself. A company like this makes streaming media players more of a traditional technology sector stock, but could also be considered a member of the next category as it manufactures devices. Streaming media has been growing as consumers look to cut the cord with cable, a trend that has been accelerating.

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Device companies Companies that make devices driven by technology. In many cases, they also make the software that makes them run and gives them added functionality. The Cloud A system of computer storage that allows information and services to be accessed by devices from anywhere. It allows companies and individuals to use services that are not resident in their devices Cyber security With data now housed in the cloud, on our devices, and even in the chips in our credit cards it is keeping information security has become a growing industry. Cyber security is about making sure information is only accessible to the people who are supposed to see it. Chip/Component makers: Some technology companies don't make finished devices at all, they make the parts that go inside them. Intel is a good example of this, as the company makes the chips and processors that make computers work. This segment also includes companies that make memory, screens and other parts that go into technology devices.

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2. Real Estate Real estate is among the best investments for your long-term goals but approach this with caution. It follows an up-and-down cycle and an uptrend when people are buying properties left and right, and a downtrend is when people sell, driving prices downThis also makes an investor gain profit by an exchange for the interest payment also it is specified in terms of the repayment of principals at the bonds maturity rates. 3. Agriculture It is also one of the best opportunities because of the continuous gradual increase of population the commodities demands go higher. In this it can provide a stable and increasing value of money. The stability of this kind of investment is really good in your business and at the same time the economic growth of the country. 4. Stocks Investing in stocks yields into high earnings when you purchase stocks at a low market price and then sell them later at a higher price. The stock market allows you to reap a larger return on investment than short term and medium term instruments such as bonds and UITFs. However, stock market prices tend to rise and fall rapidly. If the market price goes down, you’ll lose funds. Investing in the stock market is ideal for your long-term goals because an investing horizon of more than

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10 years greatly minimizes your risks from market crashes, which can take years to recover from. With the continuous increase of stock value over time it is a great investment for everyone especially for long term goals 5. Insurances Insurances can also yield a high interest specifically in terms of health, education and many more. Also, they are products that come in different forms, it includes term life, whole life, and universal life policies. There also are given variations on the different variable life insurance and variable universal life which are likely considered as securities. Overall it is everything that can produce income that is believed by the investors can be an investment. The security of the principal or the capital in each investor is investments concern. Some of the investors tolerate the risks and a gradual return with an association with the increasing amounts of risks.

The two essential factors that sort the

speculations from each other helps in deciding the proper ventures for the investors. These are the three (3) opportunities of the Philippines in terms of investment 1. Real Estate Due to its increasing value, some people purchase and later on sell it at higher prices to make money or either leasing or making it as a renting

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house. Those who purchase land for the first time they usually buy their house in a loan or credit form. It just goes with the thought the more the house is satisfactory, the greater value it gains. Just like investing in the stock market for the long-term, buy-and-hold property investing allows you to minimize your risks. Aside from a buy-and-hold strategy, you can put your investment to work by renting your property out on online marketplaces. At the same time, the Philippines have been one of the hotspots for foreigners

in

terms

of

property

buying

in

Asia.

According

to

asiapropertyhq.com, the favourable and outstanding demographics of the country makes it more attractive to the consumer especially it affordability in terms of different aspects. The market in real estate in the Philippines has boomed in the past years, this follows the path of the country's strong economic growth since 2010. At this same time, it agrees to the thought that the land never depreciates it only appreciates. The website also overviewed what will happen in the real estate industry for the year 2019, it will be bright because the value of the land increases over time. In the recent graphs, figures and trends, it may result that the Manila area could be one of the best locations to invest in real estate especially in Southeast Asia. Investment

Minimum Initial

Minimum Additional

Vehicle

Investment

Placement

Mutual funds

Php 100 to Php 5,000

Php 100 to Php 1,000

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Stocks

Time deposit

UITF

Php 5,000 to Php 1 million Php 1,000 to Php 100,000 Php 25 to Php 10 million

Php 1,000

N/A

Php 50 to Php 1 million

2. Technology The technology has also become part of the five great opportunities in Asia. For the Philippines, it is a great investment because of the great terms of Filipino's in terms of Social Media usage. In an article of inquirer.net, the Philippines have been top of the world's social media users for about 67 million people that use it. The Filipino's have an average spent for about 3 hours and 57 minutes every day in the different social media sites but on the internet itself, they spend about 9 hours and 38 minutes. The country was ahead in terms of its usage as said by the statistics. Also, e-commerce in this part is also connected in the big growth of the area. With these terms it is a really good way of investing. 3. Time Deposit and Money Market Funds Time deposits are among the best investments for beginners who are afraid of risks yet want to earn higher interest than a traditional savings account. Most savings accounts have interest rates of less than 1%, while

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time deposits earn up to more than 4%. At the same time, Money Markets are markets that trade high liquidity and short-term maturities. Its intention is to make short-term borrowing and lending securities with maturity within the year. With the interest yield in this field, it could really make a big impact on the investors and economy at the same time. Best UITF Money-Market Funds in the Philippines

ROI

UCPB Cash Management Fund

2.7077%

AB Capital Short-Term Fund

2.4029%

PSBank Money Market Fund

2.3365%

ATRAM Peso Money Market Fund

2.2591%

This table just shows the interest that could be yield can be a source of good value and has a higher interest rate compared to others.

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Retrieved

from

https://www.thebalance.com/causes-of-

inflation-3-real-reasons-for-rising-prices-3306094 Amadeo, K. (2019 January). Gross Domestic Product and How It Affects You. Retrieved fromhttps://www.thebalance.com/what-is-gdpdefinition-of-gross-domestic-product-3306038 Asidre, J. (2019 Jannuary). Best Investment. Retrieved from https:// grit.ph/best-investments/ Bartolome, J. (2018 September). What is inflation? What causes it? How does it affect us?. Retrieved from https://www.gmanetwork.com /news/money/economy/666756/what-is-inflation-what-causes-it-howdoes-it-affect-us/story/ Beggs, D. (2019 January). What is Expenditure Approach. Retrieved fromhttps://crushthecpaexam.com/accounting-glossary/what-is expenditure- approach/

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Bell, C. (2017 October). Measuring Output Using GDP. Retrieved from https://courses.lumenlearning.com/boundless-economics/chapter/ measuring-output-using-gdp/) Chand, G. (2018 November). What is Gross Domestic Product (GDP). Retrieved

from

https://corporatefinanceinstitute.com/resources/

economics/gdp-formula/ Chen, J. (2018 March). Investment. Retrieved from https://www. investopedia.com/terms/i/investment.asp Dela Paz, F. (2017 April). 5 Easy Ways To Start Investing With Little Money. Retrieved from https://www.moneyunder30.com/start-investingwith-little-money Francis, L (2017 October). What are some of the factors that contribute

to

a

rise

in

inflation?.

Retrieved

from

https://www.

frbsf.org/education/publications/doctor-econ/2002/october/inflationfactors-rise/ http://investasean.asean.org/index.php/page/view/aseaneconomic-community/view/670/newsid/755/about-aec.html http://www.finra.org/investors/types-investments https://asean.org/asean-economic-community/ https://www.bankrate.com

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https://www.businesstimes.com.sg/hub-projects/deepening-aseaneconomic-integration/what-is-the-asean-economic-community https://www.economicshelp.org/macroeconomics/inflation/causes -inflation/ https://www.fool.com https://www.investopedia.com https://www.manilastandard.net https://www.manilatimes.net/the-asean-economic-community-awork-in-progress/341181/) https://www.moneycrashers.com/what-is-inflation-definition-causesinflation-rate/ https://www.moneyenigma.com https://www.NewWorldEncyclopedia.com https://www.philstar.com https://www.rappler.com https://www.retalkasia.com https://www.worldbank.com

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Kenton, W. (2019 February). Gross Domestic Product – GDP Definition. Retrieved from https://www.investopedia.com/terms/g/gdp.asp Matthews, R. (2012 September). The GDP Approaches. Retrieved from https://mic.com/articles/14943/gdp-and-the-us-economy-3-ways-tomeasure-economic-production#.aOhypICo9 Ross, S. (2017 December ). Expenditures Approach to Calculating GDP.

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from

http://www.econport.org/content/handbook/

NatIncAccount/CalculatingGDP/Expenditures.html Ross, S. (2019 February). How to Calculate GDP With the Expenditure Approach. Retrieved from https://xplaind.com/261001/gdp-expenditureapproach Welker J. (2019 September). The Income Approach and the Expenditure Approach to Measuring the GDP of a Nation. Retrieved from https://econclassroom.com/measuring-gdp/