Wednesday, March 9, 2011

Learnings and Reaction

Last March 4, 2011, I learned various things with regards some economics lesson. A professor named Timothy Taylor discussed about the four types of competition. It includes their characteristics, their similarities and differences.
According to Mr. Taylor, the four types of competition are the perfect competition, the monopoly, monopolistic competition and oligopoly. He described perfect competition as strict and serves as the benchmark against to measure real life and imperfectly competitive markets. It also has basic characteristics. First is every participant in the market are price takers and no participant can influence the products. Second is it has easy entry and exit and third is the prices of the products are low. In perfect competition, the sellers are selling identical products and their prices are low. Another type of competition is the monopoly which exists when a specific person or entity has adequate control over a particular product or service to determine the terms in which individuals shall access to it. Monopoly is said to be coercive when it prohibits competitors from entering the market. The third type of competition is the monopolistic competition. It is where many competing producers sell products that are differentiated from one another but the differences such as branding are not exactly alike. In this type of competition, there are many producers and consumers in the given market and no business has total control over the market price. Consumers see that there are non price differences among the competitor’s product and the producers has a degree of control over the price. There are also few barriers to entry and exit in the market. Last type of competition is the oligopoly and it has a range of characteristics. It has the capacity to set the price. The barriers to entry I this kind of market is high. There is very little number of firms and the action of one firm can easily influence the other. The products can be homogenous or differentiated.
Mr. Taylor also tackled the antitrust. Antitrust laws are intended to promote competition in the market. These competition law make illegal certain practices deemed to hurt businesses or consumers or both, or generally to violate standards of ethical behavior.
All the things stated above are what I heard and learned during the video presentation. Hopefully, I can use these learning in the future. Since I am in a business course, I look forward to be able to exercise these stuffs I learned in case I will be having my own business.

Tuesday, March 1, 2011

reaction paper-February

Oil firms to hike prices by around P2/liter
By Zen Hernandez, ABS-CBN News
Posted at 02/28/2011 8:21 PM | Updated as of 03/01/2011 10:44 AM

MANILA, Philippines - There is no stopping local fuel retailers from hiking prices as the political turmoil in the Middle East and North Africa continues to threaten oil supply, the Department of Energy (DOE) said on Monday.
Small oil players Eastern Petroleum and Phoenix Petroleum already announced their price adjustments that will be effective 6 a.m. Tuesday, March 1.
Eastern Petroleum will increase prices across the board by P2 per liter.
Phoenix, on the other hand, will hike gasoline and diesel prices by P1.25 and P1 per liter, respectively.
Other firms are expected to follow suit.
"Malaki ang impact on pricing and we are doing our best to mitigate... We appealed for oil companies to implement increase on a staggered basis," said Department of Energy Director Zenaida Monsada.
Dubai crude has gone up by $8 per dollar.
ABS-CBN News sources said this would translate to P2.65 per liter increase in the price of gasoline and P2.22 for diesel.
If the hefty increases are implemented, transport group Alliance of Concerned Transport Operators or ACTO will seek another fare hike for jeepneys.
"Ggayon ay P8 (minimum), gagawin naming P9.50," said ACTO President Efren de Luna.
Another group, PISTON, is challenging the Aquino administration to impose an oil price freeze.
Lawmakers earlier proposed to grant President Aquino emergency powers to help address a possible oil crisis stemming from anti-government movements convulsing in oil-producing Libya and most of the Middle East.
"Whether we grant the President emergency powers or not, if he acts in order to protect our citizens abroad and to serve the interests of this country, the Senate will support him," Senate President Juan Ponce Enrile said.
But the President is not too keen on the idea.
"I was made to understand that there [are] substantial funds with OWWA [Overseas Workers Welfare Administration] that can be utilized for this purpose. I think the Secretary of Energy has been briefing constantly on our attempts to mitigate the price increase," he said.


Reaction:
            Continuous increase of the oil price here in the Philippines has been always a problem in the country’s economy. Increase in oil price affects greatly the living of every Filipino. Once it increase, the prices of the primary commodity and needs of a person such as goods will also increase. Due to this problem, the country is not progressing economically and it makes the life of the Filipinos more difficult. Filipinos are becoming poorer and there are many people starving because they are not able to afford to buy food. It will also result to increase in fare and many commuters are affected. Passengers can’t do anything about it especially the workers and students who need to go to there work and to their respective school.
            I, as student felt the effects of this problem. Since I came from the province, I usually went home once in awhile every time I miss my family. But now, I can’t do it always because of the expensive fare in going home to my hometown. It will be a waste of money and I can only stay in our home for few days. Student meals nowadays are also getting pricey. Being a student has a lot of concerns and expenses therefore it is really difficult to allocate the allowance given by my parents. I really practice extensive budgeting in order to allocate my allowance properly.
            As stated in the article, the oil price has increase once again. For sure there will be endless arguments regarding this matter. The drivers will complain as well as the commuters and they will put all the blame to the Philippine government. Although the government is doing their best in minimizing the increase of the oil, it is still very difficult to do this since we are affected by the global market. All of this solely depends on the operation of the global market. As a citizen of this country, all we can do is to manage our finances properly and prioritize the basic needs that we need so that in cases that another oil price hike come across, we are ready and prepared.

Sunday, January 30, 2011

reaction paper for january

Philippine tourist arrivals hit all-time high
Agence France-Presse
Posted at 01/28/2011 2:34 PM | Updated as of 01/28/2011 7:02 PM

MANILA, Philippines - Tourist arrivals in the Philippines reached an all-time high of 3.52 million last year as increasingly affluent South Koreans and Chinese flocked to its tropical attractions, the government said Friday.
Visitor numbers in 2010 beat the previous record despite a bus hijacking that left eight Hong Kong tourists dead in August and a series of travel alerts by Western nations in November warning of an imminent terror attack.
The number of tourists arriving in the Philippines rose 16.68% over the previous year, with East Asians, led by South Koreans, accounting for nearly half the total, the tourism ministry said in a statement.
"The improved economic condition in these markets boosted their outbound traffic," the statement said.
The final numbers topped the annual target of 3.3 million set by President Benigno Aquino's government, which is seeking to boost tourist arrivals to six million by the time he leaves office in mid-2016.
Traffic from fellow Association of Southeast Asian Nations members should surge this year after passenger air services were liberalized within the 10-nation economic bloc in November last year, the ministry said.
The previous record for arrivals was set in 2008 with 3.14 million visitors.
The Philippines is targeting 3.7 million tourist arrivals this year, but this is still just a fraction of the tourist numbers enjoyed by Southeast Asian neighbors such as Thailand.






Reaction:
            It is true indeed that the Philippines have many beautiful and magnificent tourist spots. Some are not yet discovered and developed by Filipinos. These amazing sceneries in our country are the reason why many tourists keep on coming. But the unforgettable bus high jacking incident last year really threatened the tourism in our country. We really expect that the incident would scare off the tourists and will cause great decline in our tourism.

            But as it turned out, tourist arrivals even increase last year. There was a sigh of relief for sure to many Filipinos out there especially to businessmen. I am extremely happy to hear this news because as a citizen of this country it is very good to know that there are people who love and appreciate the beauty of your motherland knowing the crisis it is facing. Tourists help our economy to progress. Because of them, there are more jobs available to Filipinos and this will help aid the unemployment problems in our country. Through our foreign visitors, we will also be able to promote our country more and hopefully will help our economy grow and get better somehow. Our government has done a good job in maintaining the tourist arrivals here and they were also able to increase it.

            We should also thank the South Koreans since half of the tourists all over the country are comprised by them. I am fully aware with it since I can see many Koreans in school and I also have Korean friends. According to them, they really love to stay here in our country because they were able to experience many things and Filipinos are very nice and hospitable. It makes me very proud that I am Filipino after hearing it from them because my country was able to offer happiness and leisure to other people. Hopefully, these good things will continue and all other wonderful places will be well-promoted. These can initiate lasting relationship with people in different race and the beginning of a better life for us Filipinos.

Wednesday, December 29, 2010

econ reaction paper

Article
The Crisis of Public Education in the Philippines
By Ronald Meinardus

According to the human capital theory, the economic development of a nation is a function of the quality of its education. In other words: the more and better educated a people, the greater the chances of economic development.
The modern world in which we live is often termed a "knowledge society"; education and information have become production factors potentially more valuable than labor and capital. Thus, in a globalized setting, investment in human capital has become a condition for international competitiveness.
In the Philippines, I often hear harsh criticism against the politics of globalization. At the same time, regarding the labor markets, I can hardly think of another nation that is so much a part of a globalized economy than the Philippines with nearly ten per cent of the overall population working beyond the shores of the native land.
Brain drain. Apart from the much debated political, social and psychological aspects, this ongoing mass emigration constitutes an unparalleled brain drain with serious economic implications.
Arguably, the phenomenon also has an educational dimension, as the Philippine society is footing the bill for the education of millions of people, who then spend the better part of their productive years abroad. In effect, the poor Philippine educational system is indirectly subsidizing the affluent economies hosting the OFWs.
With 95 per cent of all elementary students attending public schools, the educational crisis in the Philippines is basically a crisis of public education. The wealthy can easily send their offspring to private schools, many of which offer first-class education to the privileged class of pupils.
Social divide. Still, the distinct social cleavage regarding educational opportunities remains problematic for more than one reason. Historically, in most modern societies, education has had an equalizing effect. In Germany, for instance, the educational system has helped overcome the gender gap, and later also the social divide. Today, the major challenge confronting the educational system in the country I come from is the integration of millions of mostly non-European, in most cases Muslim, immigrants. Importantly, this leveling out in the context of schooling has not occurred in this part of the world. On the contrary, as one Filipino columnist wrote a while ago, "Education has become part of the institutional mechanism that divides the poor and the rich."
Let me add an ideological note to the educational debate: Liberals are often accused of standing in the way of reforms that help overcome social inequalities. While, indeed, liberals value personal freedom higher than social equality, they actively promote equality of opportunities in two distinct policy areas: education and basic heath care.
For this reason, educational reform tends to have a high ranking on the agenda of most liberal political parties in many parts of the world.
This said, it is probably no coincidence that the National Institute for Policy Studies (NIPS), liberal think-tank of the Philippines, invited me the other day to a public forum on the "Challenges on Educational Reform." With the school year having just started and the media filled with reports on the all but happy state of public education in the country, this was a very timely and welcome event. I was impressed by the inputs from Representative Edmundo O. Reyes, Jr, the Chairman of the Committee on Education of the House of Representatives, and DepEd Undersecretary Juan Miguel Luz. Both gave imposing presentations on the state of Philippine education.
Although I have been in this country for over a year now, I am still astonished again and again by the frankness and directness with which people here address problems in public debates. "The quality of Philippine education has been declining continuously for roughly 25 years," said the Undersecretary -- and no one in the audience disagreed. This, I may add, is a devastating report card for the politicians who governed this nation in the said period. From a liberal and democratic angle, it is particularly depressing as this has been the period that coincides with democratic rule that was so triumphantly and impressively reinstalled after the dark years of dictatorship in 1986! Describing the quality of Philippine school education today, the senior DepEd official stated the following: "Our schools are failing to teach the competence the average citizen needs to become responsible, productive and self-fulfilling. We are graduating people who are learning less and less."
While at the said forum, more than one speaker observed that the educational problems are structural in nature, I missed propositions for reform that are so far-reaching to merit the attribute structural.
Gargantuan problems. While the Undersecretary very patiently and impressively charted out the four policy directions of the political leadership of his ministry (taking teachers out of elections, establishing a nationwide testing system, preserving private schools, raising subsidies for a voucher system), to me -- as a foreign observer -- these remedies sound technocratic considering, what one writer in this paper has recently termed, "the gargantuan magnitude of the problems besetting Philippine basic education."
Let me highlight two figures: Reportedly, at last count more than 17 million students are enrolled in this country's public schools.
At an annual population growth rate of 2.3 per cent, some 1.7 million babies are born every year. In a short time, these individuals will claim their share of the limited educational provisions.
"We can't build classrooms fast enough to accommodate" all these people, said the DepEd Undersecretary, who also recalled the much lamented lack of teachers, furniture and teaching materials.
In short, there are too little resources for too many students.
Two alternatives. In this situation, logically, there exist only two strategic alternatives: either, one increases the resources, which is easier said than done considering the dramatic state of public finances, or one reduces the number of students.
This second alternative presupposes a systematic population policy, aimed at reducing the number of births considerably.
But this, too, is easier said than done, considering the politics in this country -- or to quote Congressman Reyes: "Given the very aggressive and active intervention of the Church addressing the population problem is very hard to tackle."


Reaction:
Children are said to be the hope of the country, that’s why they are catered with good and proper education to serve the country in the future. But could we still expect to these children if we have declining quality education here in the Philippines? It is really worrisome for us students that our parents worked hard for our education yet, we are not provided with the right education that we needed. Lucky for me that I am already in college but how about those children who are still in high school, elementary, pre-school and to those who are still infant, can our country offer learning to them? With tuition fee increasing every year, can every child be given a chance to go to school? There are still schools and institutions here in our country that can offer excellent education but only those who are wealthy people can afford.
            As stated in the article, continuous falloff of the quality education in the Philippines affects the economy of the country. And as a citizen of this country, it also affects me. This article truly bothered me because what if I’ll not be accepted to any job due to my lack of training and learning. What if the school where I came from did not educate me enough to qualify to any employment? Those are the questions that run through my mind as I read this piece of writing. And this is not only applicable to me, but also to thousands of students that graduate every year. Graduates who won’t be able to find job will cause the unemployment rate to rise. I sincerely anticipate that the government will do something to address this problem. The article even provided some alternatives to the problems and I hope that these will be use to resolve the problem in education in our country.
            Even though that quality education is declining, I do wish that parents won’t be discouraged to send their children to school. Education is still important and I know that we still have better education compared to some countries and what we need to do is to maintain and improve the quality of our education. Government should offer education that is affordable to everyone and with superior quality so that it won’t be limited only to those who have money.  Besides, Filipinos are smart and skilled people and we can surely surpass any difficulty. In this coming New Year, I hope that there are improvements and actions that will be done to solve this economic problem.
           

Wednesday, December 15, 2010

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