Question

what are the multinational corporation in the phillippine economy?​

Answer 1

Explanation:

multinational corporations (MNCs) usually just provide non-longterm employment.

• The industrial MNCs build industrial zones and ports which only the MNCs use.

• The service MNCs (outsourcing and call centers) build urban economic zones but also create traffic.

• The employees are only given work so that the foreign owners can cut costs and get rich. The moment the foreign owners stop getting rich, they leave and also leave the local employees and the economy they were supporting.

The impact of MNCs leaving can be seen during the Asian Crisis:

• Thailand collapsed, allowing Thaksin to gain power

• The Philippines fell a bit, Chinese-funded MNCs closed, causing a slight economic decline, allowing GMA to gain power

• Indonesia fell a bit, creating riots against the Chinese, allowing Megawati to gain power

In contrast:

• Malaysia stayed on because its investments, such as the Petronas towers, were made by their government, instead of by MNCs

• Singapore’s GIC and MAS had a lot of money to handle the crisis.

• Vietnam wasn’t affected because they didn’t have many MNCs to begin with

The countries that were not reliant on FDI and MNCs did not experience leadership change nor riots and were better off.