REYNALDO ROSS D.

SUCGANG IV
INVESTMENT LAW
2013-0644

ATTY. REYES
Assignment No. 1

1) Why are foreign direct investments (FDI) important to any

country? What reasons does the article blame for the fact that
the Philippines in lagging behind its ASEAN neighbors in terms of
FDI? Do you agree? Why or why not?
2) Do you agree that FDIs are good for the economy? Why or why
not?
3) What should our government do to attract more foreign
investors?
1. FDI is important to any country because it can provide long term
growth, increased employment, sources of capital, and global
standards of governance, increased competition, and technology
transfer. It may increase Philippine economy, stellar growth
compared to its neighbors.
According to the article, the Philippines is lagging behind its
ASEAN neighbors in terms of FDI because Philippines has
emerged anew among top FDI destinations in East Asia.
According to the margin given in the article, I would agree that
Philippines is in the bottom of the FDI countries but the margin is
still equally competitive.
2. I agree with the author the FDI is good for the economy. With the
presence of foreign investors, there will be an increase in
economy development, increase in the share of FDI or relative
products and the economy will be financially stable. Albeit, FDI
will generate a positive effect on economic growth.
3. The government should take measures to attract more foreign
investors such as political stability, sentiments to the peoples
needs, improve tariff rates, demographic, macro fundamentals,
currency risk, and market performance. In improving the
qualitative and quantitative measures of the government. The
Philippine government need to focus on midterm strategies
towards improving FDI by taking measures such as
restrictiveness, improving the ease of doing business, expanding
PPP and other critical infrastructure programs, and working with

ASEAN and global trading partners to increase cross border flows

and investments.