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One example of financial globalization in the Philippines is the rapid growth of remittance from overseas Filipino workers, which has helped reduce the financial burden of their families back home and has contributed significantly to economic development in the Philippines. As of 2017, about $2 billion in money was sent from overseas Filipino workers to their families and relatives back home every month, resulting in an inflow of about $24 billion each year. This, in turn, helped fuel consumer spending and boost the economy as a whole.
The Philippines as an Emerging Market
The Philippines is an emerging market that is
increasingly embracing financial globalization. This is evidenced by the
country's numerous initiatives to increase the integration of its financial
markets with the rest of the world. For example, the Securities and Exchange
Commission of the Philippines approved a rule allowing foreign investors to
invest directly in the Philippine Stock Exchange (PSE). This allows foreign
investors to access stocks listed on the PSE, and in turn, provides local
businesses with access to additional sources of capital.
Additionally, the Philippines is participating in
various international initiatives, such as the Asia Region Funds Passport
(ARFP), a multilateral initiative that facilitates cross-border fund
distribution throughout the region. By being part of this initiative, the
Philippines is able to increase its financial linkages with other countries and
access foreign capital from across the region.
Economic Growth and Financial Globalization
The Philippines is an example of financial
globalization, as the country has seen a significant increase in foreign direct
investment (FDI) over the past two decades. This FDI has been a key driver of
economic growth, with the country experiencing rapid economic expansion in
recent years. This growth is due to a combination of improved macroeconomic
management and financial market liberalization, as well as the inflow of
foreign capital from around the world. As a result, the Philippines is now a
more attractive destination for international capital, which has brought with
it job creation, improved infrastructure, and greater access to finance for
businesses.
The Role of Multinational Corporations
Multinational corporations are major drivers of
financial globalization in the Philippines. These global firms bring in
investments, trade, and access to foreign capital markets that can stimulate
economic growth. For example, the presence of financial multinationals has
enabled Philippine firms to make use of international banking services and the
latest technological innovations. Furthermore, these companies have provided
employment opportunities and improved the country’s fiscal infrastructure. As a
result, the example of financial globalization in the Philippines has allowed
for increased economic growth and higher standards of living for many Filipino
citizens.
The Impact of Financial Globalization
Financial globalization has had a profound impact on
the Philippines, with the country becoming increasingly integrated into the
global economy. Examples of this include a rapid increase in foreign investment
and the growth of global financial markets in the country. This has provided
greater access to capital and enabled businesses to leverage their resources
more efficiently. Moreover, it has opened up new opportunities for Filipino
citizens to participate in the global economy, allowing them to tap into
international financial markets and benefit from increased economic
opportunities. Ultimately, financial globalization has been beneficial for the
country and its people, contributing to the nation’s overall growth and
development.
Conclusion:-
In conclusion, an example of financial globalization in
the Philippines has enabled the country to open up its economy to the global
marketplace. It has allowed Philippine businesses to expand their reach,
attract foreign investment, and access new markets. Through this process, the
Philippine economy has become increasingly integrated with the global economy,
providing significant opportunities for growth. This globalization has helped
the Philippines become a more prosperous nation, and will continue to be
beneficial for years to come.
Read Also: Has Globalization Facilitated or Obstructed Greater Labor Migration.
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