Evolution of Culture

in the Philippines
Infographics
Rubrics
• Content/Information – 40%
• Graphics – 30%
• Meet Deadline – 30%
Economic
Institutions
 The term “Economic
Institutions” refers to:

a network of commercial
organizations that
determine how goods and
services are produced,
generated, distributed,
and purchased.
Blue:
Economic
Institutions
Red: Activities of
economic
institutions
Yellow:
Global community
The activities of the economic
institutions play a vital role in
shaping and maintaining the
stability of world community. If
one system fails to do its activity
there will be an imbalance that
will highly affect the whole
community.
What are the particular
agencies or foundations
devoted to the
gathering or studying
economic data?
Examples:
Philippine Bureau of Internal Revenue,
National Economic and Development
Authority,
Department of Trade and Industry
The Functions Of Economic
Institutions in Society
Enhance development through financial
services
Provide business opportunity to people
by financing and loans
Fund research projects aimed at
improving the lives of the individuals in
the society
Reciprocity
In Sociology, it is defined as the
system of voluntary exchange
between individuals based on the
understanding that the giving of
favor by one will in future be
reciprocated either to the giver or
someone else.
In Economics, it is
defined as an
exchange of equal
advantages.
 Types of Reciprocity

1. Generalized
it is giving out of
something without the
anticipation of an instant
return.
2. Balanced
it is giving out of
something with the
anticipation of
immediate return.
3. Negative
it occurs when the exchange of
something already involves taking
advantage of someone or the
situation. Most of the time, this type
of exchange involves trickery,
intimidation, or hard bargaining.
Think of at least three
scenarios/situations
where generalized
reciprocity can be
applied.
 Transfers
In economics, transfer or transfer
payment is a redistribution of income or
resources in the market system. It refers
to payments or transactions where
there is no value added to the
economy. There is no additional
production of goods and services but
just a transfer of money from private
hands to government.
Transfer payments can originate from
either government or business sources.
Business transfer payments include
corporate gifts to non-profit institutions,
payments for personal injury, and taxes
paid by domestic corporations to foreign
governments. Far more important, both,
in terms and policy significance, are
transfer payments originating from
government sources.
Redistribution
In relation to Sociology, is an everyday
activity of societies wherein members
of the society contribute by giving their
goods that would be collected by the
head of the community followed by a
distribution of the goods among the
members.
In relation to Economics,
refers to the collection of
goods and services of the
people and groups to be
given by a central authority
for allocation.
 Market
Transactions
market is a place or
medium in which buyers and
sellers interact to transact
economic goods and
services.
 Market Structures
is the classification of a market with
regard to key characteristics such as
number of sellers and buyers, entry
barriers to the market, the control and
determinant of pricing, and types of
products in the market.
•Pure Competition Market
a market structure characterized
by a large number of sellers and
buyers, products are homogenous,
and there is a complete freedom of
entry and exit of market players.
 •Monopoly
a market structure characterized by
a single seller of a well-defined
product for which there is no
available substitutes and high barriers
of entry of other market players.
Seller has the complete control of the
pricing of goods and services.
• Monopolistic
Competition
a market structure characterized
by a large number of independent
sellers, each producing a
differentiated product in a market
with a low barrier to entry of other
players.
 • Oligopoly
a market in which only a few
number of sellers comprise the entire
industry with a relatively large
number of buyers thereby sellers has
the power over the price of
products.
• Monopsony
is a market in
which there is only
one buyer.
Market Transactions

It is the exchange of goods and

services through a market, whereby
buyers and sellers agreed on the
price and quantity of goods and
services to be bought and sold in a
specific place and time.
Types of Markets
Physical Markets

This is a set up where buyers can

physically meet the sellers and
purchase the desired merchandise
from them in exchange of money.
 Non Physical
Markets/Virtual markets

In such markets, buyers purchase

goods and services through internet.
In such a market the buyers and
sellers do not meet or interact
physically, instead the transaction is
done through internet.
 Auction Market
In an auction market the
seller sells his goods to
one who is the highest
bidder.
 Financial Market
This market deals with the exchange of liquid
assets (money). Financial markets can be further
categorized following types:
• Stock Market - a form of market where sellers
and buyers exchange shares.
• Bond Market - a market place where buyers and sellers
are engaged in the exchange of debt securities, usually in
the form of bonds.
• Foreign Exchange Market - In such type of
market, parties are involved in trading of
currency. In a foreign exchange market
(also called currency market), one party
exchanges one country’s currency with
equivalent quantity of another currency.
• Predictive Markets - Predictive market is a
set up where exchange of good or service
takes place for future.
Market equilibrium
• became the balancing
force between demand
and supply of goods in
the market.
Market and State
market is a place where buyers
and sellers transact economic
goods and services. It is also a
mechanism used by the society
for allocating and distributing the
goods and services produced.
A state is a group of person, more or less
numerous with a definite geographical
area with a defined territorial
boundaries, independent of external
control, ruled by a government through
laws where inhabitants had to conform
by force in the common interest. In
economics, a state is always referred to
the government.
 Nonstate Institutions:
Banks and Corporations
refer to institutions that are organized
by private individual or groups for the
purpose of providing services to the
members of the society. These
institutions are not controlled by the
government but they are regulated
through laws and statutes of the state.
 Financial Institutions
are organizations that serve as bridges
or intermediaries that help the flow of
money from people with money to save
to people who need to borrow money.
This means that financial institutions serve
as links between the source of funds, the
depositor, and the fund user, the
borrower.
 Banks
receive the savings and
other deposits of their clients
so that these may be
loaned out to borrowers.
Banks
in the modern sense of the word
started during the Renaissance
period in Italy. The word bank traces
its origin from the Old Italian word
banca which means table or bench;
and is where transactions occur at
that time.
Banking Institutions

The Bangko Sentral ng Pilipinas is

known as the banks of all banks
in the Philippines. It is the bank
responsible for the regulation,
creation, and management of
money supply in the country.
 Types Of Banks
Commercial Banks
accept savings deposits,
check deposits, and time
deposits.
Thrift Banks are categorized into
stock savings and loan associations,
savings and mortgage banks, and private
development banks. They consolidate the
savings deposits of their member into a
fund from which their member can draw
loans with interest. They can also accept
deposits from the public and provide
loans for small-and medium-scale
enterprise.
Rural Banks cater
primarily to farmers and
small business people,
mostly in rural areas.
 Corporations
is an organization of people legally
bound together by a charter to
conduct some type of business. It has
a legal entity separate from its owners.
The type of business that a corporation
wants to venture depends on its
articles of incorporation.
 Advantages Of Corporation As A
Business Organization In The
Economy:
 *Easy to raise funds* – the corporate form is the most effective for
raising money.
 Limited liability – is the concept that owners of the business are only
responsible for its debts up to the amount they invest in the
business.
 Unlimited life – the corporation does not cease to exist if a major
stockholder dies.
 Specialized management – big corporations can afford to have
specialized managers to run the business.
 Risks are shared – the risks of the business are spread among many
owners.
 Disadvantages Of Corporation As A
Business Organization In The
Economy:
Difficult to start – corporation needs government approval
before starting the business.
Less direct control – the owners are usually far from the day-
to-day operation of the business.
Double taxation – corporation pays corporate tax and the
owner who received dividends from the profit has to pay
their personal income tax.
Limited activities – what is only stated in the article of
incorporation is the only activity that corporation should do.
 Cooperatives and Trade
Unions
Cooperative is a voluntary organization of people who
have agreed to pool their resources together to
undertake an economic enterprise for the reason of
meeting their everyday needs, and which they
democratically manage, control, and share the
economic benefits by participation and patronage
(Cooperative Development Authority, CDA).
Trade unions (or labor unions) are voluntary associations
of either employees or employer or independent workers
to protect their interest and became an instrument of
defense against exploitation and maltreatment.
 The commonalities of
these two non-state
institutions:
Organized and formed by group
of people to protect their interest
Promote the common good
among members
Voluntary in nature
 Types Of
Cooperatives
Some Examples Of Trade Unions
The
Differences
Between
Cooperatives
and Trade
Unions
As to purpose :
The
Differences
Between
Cooperatives
and Trade
Unions
As Functions :
 Transnational
Advocacy Groups
are networks, not bound by any national
or international border; that defend a
cause or proposition. They are a group of
people from different walks of life who
advocate for policy changes that are in
line with their interests and the interests of
others.
 Transnational advocacy groups use a variety of
political tools to influence international policy and
practice. These tools are:
 Information politics: the ability of groups to control or limit the release
of information so as to provide a realistic and broader picture of a
certain issue. Doing so does not necessarily guarantee a good image
for the government.
 Symbolic politics: linking past events to another in to provide a possible
outcome for a similar, presently-occurring event.
 Leverage politics: creating linkages with other groups to gain moral
and financial support in advocacy.
 Accountability politics: monitoring the action of states to ensure their
commitment. The responsible state or company’s accountability on
the matter shall be made known to the public should any discrepancy
between commitment and result occur.
 Functions of Transnational Advocacy
Groups
 They change political and policy-making focus: issues raised by transnational
advocacy groups are actual issues of the common population. Implicating moral and
emotional forces, these groups refocus the most important issues.
 They redefine issues: these groups, through wise use of information, repackage issues
into more general and unbiased forms. As such, positions on various issues are
influenced to change with some being on advocacy networks’ favors.
 They reframe information: as mentioned, transnational advocacy groups learned to
control the flow of information to include unbiased and broader pictures of existing
issues. In doing so, a moral and emotional appeal will likely influence people to raise
their advocacy and concern for the phenomenon.
 They give voice to the voiceless: because of their moral and emotional impact on the
public coupled with their advocacy for vulnerable groups; transnational advocacy
groups give the voiceless and vulnerable people a chance to raise their concerns in
an international scene.
Development Agencies
are local or international
groups committed to
pursuing specific
developmental agenda of
the state.
 Functions of a Development
Agency:
Economic roles: a development agency can take
on entrepreneurial approaches—intermediating
between the government and the market—
especially when such tasks are outside of
government responsibility. As leverages are formed,
investment failures are avoided.
Leadership roles: development agencies set out
long-term developmental goals. As independent
groups, their capability to shape goals and
outcomes are not influenced by electoral or political
changes.
Governance and coordination roles: agencies
coordinate with the state in the attainment of
developmental practices and methods. They
help overcome the jurisdiction of the public
sector in making a sole decision on
developmental goals.
Implementation roles: a development agency
can formulate its team to facilitate attainment
of a defined growth strategy. This team is
focused on project management, instrument
development, and business or investor facing
services.
 Significance of Development
Agencies in Society
Development agencies assist the government in attaining
a well-developed society through well-studied
developmental strategies and policies.
As such, development agencies exist to promote business
efficiency and competitiveness to increase economic
growth and sustainable development.
Additionally, development agencies actively provide
avenues for honing employment strategies and
opportunities.
 International
Organizations
are groups that
promote voluntary
cooperation among its
members.
The following conditions should be met
for one group to be called an
international organization:
There must be membership from at
least three states or nations.
Activities must occur across several
states.
Members must have formally
agreed to be part of the
organization.
 Functions of International
Organizations
An acquaintance of information: International
organizations have the capability to access
relevant information for a specific cause. They
also have the capability to monitor trends and
progresses of longitudinal empirical researches.
Provide service and aid: These organizations,
especially the bigger ones, provide various types
of services to people depending on the cause.
Provide avenues for communication: Being part of
an international organization means that members
from different parts of the world get easily to voice
out their concerns to one another. This may lead to
easier communication and work flow.
Provide avenues for settling disputes: Because
international organizations’ members continuously
communicate with each other, disputes and
misunderstandings over certain issues and concerns
may easily be resolved as such organizations
provide opportunities for communication through
regular meetings and updates.