MASCARDO, LEA ROVIE D.

PRINCIPLES OF ECONOMICS (WF 11:00-12:30PM)

BSED- IV SOCIAL STUDIES MS. LEA CADA

Assignment:
1. Foreign currencies and their corresponding recent exchange rates.
Philippine Peso 1.00 PHP inv. 1.00 PHP
US Dollar 0.019395 51.559007
Euro 0.016454 60.775762
British Pound 0.014717 67.947793
Indian Rupee 1.264579 0.790777
Australian Dollar 0.024942 40.093194
Canadian Dollar 0.024251 41.236246
Singapore Dollar 0.026314 38.002436
Swiss Franc 0.018944 52.786412
Malaysian Ringgit 0.081867 12.214922
Japanese Yen 2.180518 0.458607

2. What is a foreign resource? Identify the foreign resources of the Philippines and what does the
government do about it?
Foreign Resource- Income earned from investments made outside the domiciled country of
the investing entity such as a mutual fund and that is typically taxed at the foreign source. In the
U.S., foreign sourced income is also taxable to recipients although a foreign tax credit may be
available for eligible taxpayers.
Philippines - Openness to and Restriction on Foreign Investment
Government does- Attitude toward Foreign Direct Investment- Philippine law treats foreign
investors the same as their domestic counterparts, except in sectors reserved for Filipinos by the
Philippine Constitution and Foreign Investment Act. Laws/Regulations on Foreign Direct
Investment, Business Registration, Industrial Promotion, Limits on Foreign Control and Right to
Private Ownership and Establishment, Privatization Program, Screening of FDI, and Competition
Law.
3. Explain the need for import and export quota in the Philippine.
Exports and imports are important for the development and growth of national
economies because not all countries have the resources and skills required to produce certain
goods and services. Nevertheless, countries impose trade barriers, such as tariffs
and import quotas, in order to protect their domestic industries.
4. What are the measurement in economic performance? How can it determines the economic
progress of the country?
Economists and statisticians use several different methods to track economic growth. The
most well-known and frequently tracked metric is gross domestic product or GDP. Over time,
however, some economists have highlighted limitations and biases in GDP calculation.
Organizations, such as the Bureau of Labor Statistics, or BLS, and the Organization for Economic
Co-operation and Development, or OECD, also keep relative productivity metrics to gauge
economic potential. Some suggest measuring economic growth through increases in the standard
 of living, although this can be tricky to quantify.
Income is one of the most significant factors in measuring economic performance, and gross
domestic product (GDP) is the most commonly used measure of a country's economic activity. In
short, GDP reflects the value of all final goods and services legally produced in an economy in a
given time period.

5. What are the International Trading System in the Philippines? How can trade help in economic
progress of the country? Why is trade important? What are the advantages and disadvantages
of the trading system?

The Philippines is the 41st largest export economy in the world. In 2016, the Philippines
exported $54.3B and imported $80.5B, resulting in a negative trade balance of $26.3B. In 2016
the GDP of the Philippines was $304B and its GDP per capita was $7.81k.
The top exports of the Philippines are Integrated Circuits ($13.6B), Computers ($4.47B), Wood
Carpentry ($2.78B), Semiconductor Devices($2.33B) and Insulated Wire ($2.25B), using the 1992
revision of the HS (Harmonized System) classification. Its top imports are Integrated
Circuits ($9.5B), Cars ($3.93B), Refined Petroleum ($3.56B), Office Machine Parts ($3.06B)
and Crude Petroleum ($2.91B).
International trade is recognized as a powerful instrument to stimulate economic progress and
alleviate poverty. Trade contributes to eradicating extreme hunger and poverty, by reducing by
half the proportion of people suffering from hunger and those living on less than one dollar a day,
and to developing a global partnership for development, which includes addressing the least
developed countries' needs, by reducing trade barriers, improving debt relief and increasing
official development assistance from developed countries.
Countries trade with each other when, on their own, they do not have the resources, or
capacity to satisfy their own needs and wants. By developing and exploiting their domestic scarce
resources, countries can produce a surplus, and trade this for the resources they need
Advantages of trading system- It is a simple system devoid of the complex problems of the
modern monetary system. There is no question of over or under-production (or of unemployment
or over-hill employment) under the barter system since goods are produced just to meet the
needs of the society.The problems of international trade, such as, foreign exchange crisis, adverse
balance of payments, do not exist under barter system. There is no problem of concentration of
economic power into the hands of a few rich persons under the barter system because there is no
possibility of storing the commodities. Personal and natural resources are ideally utilized to meet
the needs of the society without involving any wastage. The barter system also reaps the benefits
of division of labour because it represents a great step forward from a state of self- sufficiency hi
which every man has to be a jack of all trades and master of none.
Disadvantages- Double coincidence of wants, absence of common measure of value, lack of
divisibility, the problem of storing wealth, difficulty of deferred payments and problem of
transportation.