CAPITAL AND INVESTMENTS, like water, flow where they are welcomed and accommodated. Small water tributaries join together to form a large river, a lake, or drain into the oceans.
Similarly, capital congregates in locations where it is safe and permitted to enter and go with the fewest limitations and prohibitions.
That is how certain tiny nations and territories with less people, such as Singapore became affluent and successful financial hubs.
Create riches and employment all around the planet. Multinationals’ inward investment generates much-needed foreign cash for emerging nations. They also assist to generate employment and boost expectations about what is achievable.
Second, they train personnel and offer managerial knowledge to the nation. Philippine should welcome more foreign corporations as long as the government has rules in place to prevent them from distorting the market owing to their dominance.
The Philippines will earn more in taxes since the majority of Filipino-owned businesses do not pay all of their taxes.
Philippines immigration simply has to be highly stringent in order to prohibit international corporations from hiring people outside of the country, like Hong Kong and Singapore do.
The compensation structure for employees – I would expect they would keep to market rates. Perhaps they are prepared to spend for extraordinary talent, as global corporations have done.
Whereas a local firm would depend on generalists to optimize talent, multinationals’ position definitions would necessitate the development of specialized talents.
More consumer alternatives on the market. Capability to invest in market growth via advertising and consumer promotions. As a result, local businesses respond with their best efforts.
Because that 60 percent is virtually never possessed by anybody in the lower classes and is nearly never governed by them, corporate power is utilized to strengthen the elites’ local and national influence, status, and riches.
Multinational firms contribute to the diversification of local economies.
Multinationals diversify these economies by increasing the range of local output levels. This decreases dependency on commodities, which can have variable pricing due to fluctuations in supply and demand.
Shareholders of a company in the Philippines have limited liability. As a result, they will not be personally accountable for the corporation’s obligations. If the firm fails, their personal assets will be secure. Their responsibility is limited to the amount invested.
957,620 commercial businesses
The Philippine Statistics Authority’s (PSA) 2020 List of Establishments revealed a total of 957,620 commercial entities operating in the nation. There are 952,969 MSMEs (99.51 percent) and 4,651 big firms (0.49 percent).
BDO Unibank was the biggest firm in the Philippines in terms of assets in 2022, with a market capitalization of around 69.48 billion US dollars. Metropolitan Bank and Trust finished in second place, with an asset worth of around 49.11 billion US dollars.
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