Why Do Developing Countries Such as “The Philippines” Try to Attract Foreign Investment?
Why is it important?
Economy is one of the core elements that provides power, strength and respect to countries in not only global arena, but also international relations, foreing policy affairs and bilateral communications. According to Realist Theory economic power is also one of the main aim and power maximizing tool that all countries want to reach and have for their political and global benefits. One of the most important factors of Economic strength is investment and especially foreign investment. From past to present, investments have been very important things for all countries that existed and continue to their existence. Many ways and many things are tried for attracting investments. For example, the Philippines are trying to attract foreign investments because of its aims to earn more money, decrease unemployment on its territory, and increase the spread of development.
Firstly the Philippines are trying, because they want to earn more money which is one of Philippines aims that stands behind attracting and encouraging foreign investment on its territory. With those foreing investments, will do more trade, It provides more export and cheaper imports. Cheaper imports can also decrease domestic consumer prices, increase economic growth and household welfare. International trade also tends to reduce the prices of consumption goods, creating welfare obtains for consumers in countries. Therefore Philippines will reach its aim of earn more money with encouraging foreign investment on its territorial area.
Secondly, Philippines are trying that because it wants to decrease unemployment on its territory. With that investment, the Philippines will have more different jobs and labour than now and past, and also the Philippines will have different types of occupations, business areas and different new jobs in new areas. Foreign investments would provide a higher employment rate more than people have in the Philippines now. So the Philippines’ aim of decreasing unemployment rate can be successful. Also, with these facts, the internal economic power of the Philippines will increase. Mostly high employment, less unemployment rate means more inner economic strength for countries. Usually external economic power comes after internal economic strength, growth and welfare.
Finally the Philippines are trying that because of the increased speed of development. With that investment, speed of development of the Philippines will reach a very high level more than all past and now. Because of that investment, the Philippines will be an important developing country, will be different from other countries that are developing. Because of these reasons, one of the most important and core aims that behind standing the Philippines encourages foreign investment is increase speed of development and reaching a high developing speed. To sum up, I think the Philippines can reach its aims by pushing that foreign investment if its trials will not disturb and if it continue try to attract and encourage foreign investment.
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