Paper Topic:

Motives

Investment Motivations Focusing on the Philippines and Neighboring Countries Introduction Executive Linkage is a outsource company specializing in trade and communication logistics Based in San Francisco and has been operating for 15 years Operations primarily serves US based companies doing business in Southeast and North Asia Currently has an office based in Hong Kong The motivation for studying Southeast Asia and the Philippines is to regionalize operations for North and Southeast Asia respectively Introduction Investment in Asia has been primarily motivated by advantages in production , manufacturing and labor costs Southeast

Asia is considered a key area of development because of labor skills and English language proficiency Markets are dominated by US and Japanese investments Southeast Asia can be considered as a market in itself because of the trade uniformity established by the Association of South East Asian Nations (ASEAN Understanding Markets and Industries South East Asian Markets South-east Asia is a prime destination for foreign direct investment : 22 of the Asia-Pacific Since the Asian financial crisis in the 1990 's there has been a domination of Japanese FDI in the region Outward orientation through foreign investment promotion remains a viable development strategy for the region Investments in the region have shown sensitivity to FDI investment in other regions particularly considering investments in North Asia and India South East Asian Markets Export operations and FDI is considered as the most viable or encouraged means of entering markets Areas of concern for investors is related to political stability in the region , intellectual property rights and financial management Estimated economic growth in 2006 was pegged at 5 .5 and at 5 .7 by 2007

The Philippines and South East Asian Markets The country is considered as part of the ASEAN4 together with Thailand , Malaysia and Indonesia FDI became a priority for the Philippines after the Asian Financial Crisis Has a relatively well-diversified pattern of inward investment but low Together with Indonesia , considered as investment alternatives versus Thailand and Malaysia Adopted export-oriented approach to investment development by 2000 The Philippines and South East Asian Markets Philippines : Country , Economy and Management Issues Country Brief Has attracted primarily labor-intensive FDI Dominated by US firms but has Japanese and European FDI are considered prime growth areas Equity limits and regulatory measures exist based on Constitutional provisions Key industries : electronics , service , business process outsourcing , manufacturing , retail Area of concern : lack of infrastructure , security , political stability , corruption Economic Brief Economic Brief Economic Brief Management Concerns Management Concerns Management Concerns Management Concerns Conclusions and Action Plan Conclusion Macroeconomic Issues Chronic fiscal deficit problems Political instabilities Security issues linked to global terrorism and insInfrastructure Lack of long term investment in public infrastructures , particularly electricity Negative experience of private sector in financing or creating partnerships for infrastructure development Governance and Institutions Bureaucratic government , high costs of dealing with regulatory bodies , redundancy and lack of ITC development in public sector Mandated minimum wages constraint business lack of reliable credit information Corruption

Conclusion Labor and Manpower High level of literacy English proficiency and Technical...

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