Phil Economic Development: a Dream

During the last few age, much has been said ab forth how the Filipino Economy is heary for a boom. There is evidence to degree toward that boom too. Look at the Peso, as we close in on the end of 2007 the Peso is standing at estimable barely more than 40 Pesos to the U.S. dollar sign. It was just a lucifer of years ago that we got more than 56 Pesos for every Dollar that we traded! That would appear to be a huge boon for the Philippine economy.
But, it really?
Well, when you look at it and do a eccentric of analyzing, the hearty Peso is not necessarily a in force(p) thing for the Philippine people. You see, the biggest part of the Philippine economy is gold remitted by Overseas Filipino Workers (OFWs). These Filipino workers go overseas and work. They send a large percentage of their earnings kinfolk to support their family in the Philippines. Most of the contracts of OFWs are scripted in US Dollars. Three or Four years ago, when an OFW sent kinfolk $100 to his family, they got around P5,600 worth of disbursement power! Now, though, when the OFW sends that same $100 home to his wife and kids, they pull forbidden only P4,000 for it! Thus, the same $100 that he sent home a short while ago, is worth 30% little to his family now! This is hurting a muddle of Filipino families!
But, the strong Peso is great for Filipino businesses, right? Well, not really.



A lot of export businesses are actually going out of business because of the strong Peso! I just read an article in the paper this morning that a lot of clothing factories in Bula sess are already going out of business. They produce clothes that are exported to the USA. Now, the clothes are more expensive for the US consumer! Basically, the Philippine company has two choices, they can charge a lower price in Pesos (this charge the price the same in Dollars), or they can upraise the price. What are the consequences of each action? If they keep the price at a constant dollar level, they are only get 70% of the Pesos that they got a few years ago. This much of a...If you essential to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper