Lesson: Contemporary Economic Issue Facing the Filipino Entrepreneur Flashcards
It is purchase of goods
that are not consumed today but used in the
future to create wealth.
Investment in Economic
It is purchase of goods
that are not consumed today but used in the
future to create wealth.Is a monetary asset
purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.
Investment in Finance
Reasons why firms invest:
Investment may be required to replace worn out, or failing machinery, equipment, or building
Investment may be undertaken to purchase new machinery, equipment, or building in order to increase productive capacity.
Includes both types of investment spending but net investment only
measure new assets rather than replacement assets.
Gross Investment
Gross Investment - Depreciation
Net Investment
carries more significance, as it provides the basis for economic growth.
Net Investment
Main Determinants of Investment:
The Expected Return on the Investment
Business Confidence
Changes in National Income
Interest Rate
General Expectations
Corporation Tax
Level of Savings
happens when an increase in national income (GDP) results
Accelerator Effect
Status of Foreign Investment in the Philippines:
Foreign Investment in the Philippines is lagging behind.
Government should continue removing key infrastructure bottlenecks that have
limited the potential of various sectors of the economy, especially in the areas of industry and agriculture.
Investor face long list of challenges, including limited or poorly maintained roads on which to move goods.
Presidents are limited to a single six-year term and succeeding administrations have been known to repeal their predecessors’
work.
Joint Foreign Chambers
a coalition of the American, Australian-New Zealand, Canadian, European, Japanese and Korean chambers in the Philippines and the Philippine Association of Multinational Companies Headquarters Inc.
Joint Foreign Chambers
the biggest concern in
the Philippines, Inadequate public infrastructure, restrictive labor regulations,
supply inadequacy and high tariffs.
Corruption
Challenges for the Filipino Entrepreneurs:
Government Licensing and Permits
Prohibitive Rental Rates and other Clauses in Malls.
There are Many Who Have No Jobs
Current Problems of Filipino Entrepreneurs:
Inadequate access to technology
Financing Capital
Marketing Advice
Logistical problem in setting up and maintaining their competitiveness in their community
Types of Business Taxes:
Value Added Tax ( VAT )
Salary and Wage Taxes
Amusement Taxes
Excise Taxes
Import Taxes
Individual Income Taxes
Corporate Income Taxes
Real Estate Taxes
Estate or Inheritance Taxes
A 12% must be collected for almost all kinds of product sales, services, and leases
Value Added Tax ( VAT )