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In: Business and Management

Submitted By jtirado46
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Physical environment and its effect on trade
The Philippines is made up of approximately 7100 islands which the majority of the islands are covered in tropical rainforests. The country’s vast coastlines, which measures approximately 36289 km and is the fifth longest in the world, make it an ideal area for importing and exporting goods. Because of its vast coastlines, the Philippines has hundreds of ports for imports and exports throughout the country along with the necessary accommodations to support a vivacious trade market. The country’s primary trading partners are the United States and Japan, which have accounted for more than 50-60 percent of their exports in the last ten years (Advameg, Inc., 2013).
Economic Conditions
According to the 2011 World Bank statistics, the Philippines has the 43rd largest economy in the world and is considered as a newly industrialized country and one of the emerging markets in the world. Their estimated GDP for 2012 was $416.721 billion. At its growing rate, the country is forecasted to be the 14th largest economy in the world by 2050. Their primary export, which was estimated at $52 billion in 2012, include electronics and semiconductors as well as copper products, transport equipment, garments, coconut oil, and fruits (Advameg, Inc., 2013). Due to its growing rate, the country’s economy has been transitioning from agriculture based, which makes up 33% of the labor force, to more on manufacturing and services, which makes up 52% of the labor force. In 2011 the labor force was comprised of about 60 million and the unemployment rate was about 6.8 % as of October of last year (CountryWatch, Inc., 2013). Their currency is the Philippine Peso, which equals 100 centavos, and the exchange rate per US dollars is 43.44. In 2010, the Philippines was reported to have surpassed India as the world leader in Business process…...

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