Key terms: Definition: Opportunity cost The cost of missing out on the next best alternative. Economic goods Goods that are scarce and therefore have an opportunity cost. Free goods Goods….
Major economic problems in the Philippines are very similar to the economic problems in other underdeveloped countries. Some of the major pinpointed problems are the import-export imbalance, causing those who specialize in trade and make their living off of imported and exported goods to lose money. The imbalance causes families that are forced to survive off of this small income to wonder if they are going to eat the next week or not.
One week there are plenty of orders to keep a family and company afloat; the next, there are no orders, causing the family and companies to suffer. Decline of the Philippine peso, which is the value of the money in the Philippines. The lack of business versus the amount of pesos in the small country simply do not add up. In order for families to purchase anything in the Philippines, they have to have several hundred pesos to equal the value of what ever it is they are attempting to purchase.
The pesos are equal to less than that of the Mexican peso. Reliance on remittances. This is when the companies in the Phillips attempt to sell and distribute goods over seas, with other workers from the countries. The Filipinos work in a different country and forward monies back to the homeland, where the company is based out of. This prevents the countries – the foreign and home – from taking out excessive taxes and fees for importing and exporting goods.
These are just some of the major problems concerning the Philippines. More information on this country can be found at www. buzzle. com. Individuals continue to suffer daily, and struggle throughout daily life. There are several charities set up through the United States in an attempt to assist these families that desperately need help with simple survival skills. For more information, please see:www. reference. com