PH retail industry seen to grow in ASEAN
integration
Summary of Article:
Association of Southeast Asian Nations
(ASEAN) is implementing a regional economic integration next year. This change
is said to positively affect the retail industry of the Philippines, allowing
foreign retailers to come to the Philippines while Filipino retailers can
expand to ASEAN countries. Sy-Coson said, “I think there will be growth in the
retail industry.”
This economic integration will undoubtedly
help the Philippines economy; these foreign ASEAN companies generally have high
revenues, so the Philippines government can earn tax income. This will also
open the market to new varieties of products, increasing consumer preferences,
which will most likely increase the demand of goods. However, with an increase
in competition between foreign and local retailers, the foreign retailers may
become more dominant due to their advantages of economies of scale. The local
retailers may also lose incentives to compete if the foreign retailers get too
competitive.
hey there buddy ;)
ReplyDeleteyou sound like a real economist. yes, it is true that everything you said in your thoughts is true. However, not everything in life is true and will happen 100 %. There can be different results in every different situation.
I like the post !! :)))
ASEAN integration is no doubt a very beneficial thing for many of its member-states. The economic benefit due to increased trade, the opening of markets, FDI, etc. However, as you said, the local retailers will lose out, as they will likely be unable to compete with the low production costs of the other nations. Furthermore, it is important to consider what the implications of ASEAN integration is on Philippine culture. I worry about the Philippine culture further homogenizing through the products, media advertising, and services given by other countries. I think it is important to consider the non-economic implications when discussing the economy, as the sociocultural, economic, etc. realms are often interconnected.
ReplyDeleteThere is no doubt that "development happens." The biggest thing to keep in mind I think is that uncontrolled/runaway development is much more damaging in many ways than development that is tightly monitored and meticulously planned. This is a tough situation because the Philippines as a whole will probably benefit but the individuals within the country who have no real connection to this economic integration are probably not going to notice any change at all.
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