Tarlac State University

College of Business and Accountancy

Midterms- MasEco 3 (IBT)

Name: Razmen R. Pinto Year/Section: BSAIS-3B

Discuss:

I. What is Globalization? What are the advantages and disadvantages of a global free

trade to countries in a globalized economy?

Globalization has many definitions it maybe the exchanging of products of one country to

another, the diversity of culture and religions of one place to another, the adaptation of how a

group of people live in a certain place and the interconnectedness of the people and countries.

Globalization sped ups the movements of human being because of the advancement that it

causes to our economy especially to technologies all over our planet. It also promotes and

increases the interaction between different regions and populations around the globe. The

good thing about free trade are is that it encourages competition, which consequently

increases a country’s efficiency. Products and services the become of better quality without

being too expensive. When there is free trade, tariffs and quotas are eliminated, monopolies

are also eliminated because more players can come in and join the market. Free trade lower

the prices because when ther is competition, especially in global level, prices will surely go

down, allowing consumers enjoy higher purchasing power. Lastly it increased variety, with

imports becoming easier and cheaper, consumers will gain access to variety of products that

are inexpensive. While the bad thing about free trade area are when imports come in more

easily, domestic producers can easily access them, allowing them to copy the ideas and sell
them as knock-offs and outsourcing jobs in developing countries can become a trend with a

free trade because many countries lack labor protection laws, workersmay be forced to work

in unhealthy and substandard work environments.

II. Cite and explain at least 3 forces why businesses engage in globalization? Does the

advantages outweigh the risks? If yes, why. If no, why not?

Businesses engage in globalization because (1) to increase its profit, participating

internationally will give a better way for the success of a certain business. The more wider

the business expands it has more chance to increase its profit. (2) It test out its

competitiveness as it involves in a more wider economy, the inner creativity of the business

will be test out as it will be in a new environment, what will be their move to stand out their

business and make it popular other than the other business and (3) gives more opportunity to

those people who need jobs, the more business in a certain place the more job it will offer to

people and it will brought a growth to economy. Advantages outweighs the risks because I

believe the higher the risk you take, the higher the return you’ll receive in the future.

Business is like gambling, you will not win if you will not try to risk. Businessman/woman

shouldn’t be afraid to fail and try again because the second time they try they will not start

from scratch but rather they will start because of experience they had.

III. Does the Philippines stand to gain from a globalized system of free trade?Explain.

Yes, because if not, no one would wanted to put a business in our country, no one would

wanted to exchange goods from our country and also no country would wanted to accept
Filipino workers from our country. Societies that enact free trade policies create their own

economic dynamism-- fostering a wellspring of freedom, opportunity and prosperity that

benefits every citizen. Through this free trade it helps our country to develop by the help of

other country as well us to them. Those negotiations with other country helps our economy to

grow not just because for the people of the country but also for the country itself. Free trade is

a way for consumer here in our country to offer most choices and best opportunities to

improve our standard of living as it promotes innovation because along with the goods and

services, the flow of trade circulates new ideas. Without free trade area or being engaged in

globalization I think our country wouldn’t be that competitive in global markets and it will

highly affect our economic growth. People in our country would also suffer for being not

employed because of lack of job offers within the country and also outside our country.

IV. Given the present state of affairs, with the Covid Pandemic still very much in our

midst, what “economic behavior” should the Philippines take to stay on top of the

prevailing economic difficulties now being experienced by the country?

Government of the Philippines must put attention to those families who is literally affected

during this pandemic. They should not just choose who will and will not receive “ayuda” but

rather give it to the people or every family, because during this pandemic it is not about who

is affected or not but it is about us, all people who suffers from this pandemic. And also the

government should also raised a concern about having online learning class during this

pandemic, student having a hard time answering modules while they are not emotionally

capable is more challenging than we think. I would likely choose to sacrifice education than
the health of an individual. I understand that education is important to every individual but

what is education if one being can’t even focus or are they really learning in this set up.

Next is about people of this country, every individual should understand the laws and

regulations that are being implemented during this pandemic. People must learn to follow

those rules and if they won’t then they must be disciplined. I believe that it is not all about

the government action but also us, the people of this country that should balance the situation

that we are right now. No one like what we are experiencing right now but all we can do is to

follow the safety measures that is needed to be followed.