Lyceum of Subic Bay

Subic Bay Freeport Zone

College of Customs Administration

A Research paper entitled

The Importance of Import and Export in the Philippines

In partial fulfillment of the requirements in

ENGL 116 Business English and Correspondence

Submitted by:
Jobelle B. Nazareno
Stryver Hart D. Pascual

Submitted to:
Ms. Desiree Tan

Date submitted:
October 8, 2014

I.

INTRODUCTION

Import and export is an important factor of a nations productivity. It depicts the

financial transaction of international trade. In trade, the importation and exportation of
goods are limited by import quotes and mandates from the customs authority. Import is
a good brought into a jurisdiction, while an import in the receiving country is an export
from the sending country. Nations import goods so they can obtain resources that are
unavailable. On the other hand, Nations export to other countries from their own natural
resources. In todays global economy, consumers are used to see products produced
from every corner of the world in their local malls. These overseas products or imports
provide more choices to consumers and help them manage strained, household
budgets. The value of currency is one of the biggest determinants of nations economic
performance.

The purpose of this research is to show the importance of importation and

exportation happening in our country. The researchers will determine the economical
stability of our country thru import and export.
The Philippine Export-Import Credit Agency, also known as PhilEXIM, is an
organization in the Philippines connected to the Department of Finance. Formed by
presidential decree on January 31, 1977 under the title Philippine Export and Foreign
Loan Guarantee Corporation, the organization has been revised several times since as
its area of operation is modified. The organization's current mission is to
facilitate international trade by offering financial or other assistance to Philippine
enterprise, particularly small or medium sized companies. It also facilitates
governmental projects that may encourage international trade.

REVIEW OF RELATED LITERATURE

Historically, the Philippines have been an important centre for commerce for
centuries for its ethnic minority, namely, the Chinese who were also its first occupants.
The archipelago has also been visited by Arabs and Indians for the purpose of trading in
the first and early second millennium. As of 21st century, the country is member in
several international trade organizations including the APEC, ASEAN and WTO
Since 1980s, the Philippines have opened their economy to foreign markets, and
established a network of free trade agreements with several countries. The United
States is one of the Philippines top trading partners in 2010, according to US
Department of Commerce dad, trade between the Philippines and US amounts to
US$15.4 billion. US is also the Philippines largest foreign investor, with foreign direct
investment close to US$6 billion at the end of 2009.
Under the new Aquino administration, the government plans to open up the
country to more foreign investment in industries such as business processing
operations, mining and tourism. However, this move may be hindered by restrictions
such a prohibition of foreign ownership of land and public utilities.
The word "import" is derived from the word "port," since goods are often shipped
via boat to foreign countries. Countries are most likely to import goods that domestic
industries cannot produce as efficiently or cheaply, but may also import raw materials or
commodities that are not available within its borders. For example, many countries have
to import oil because they either cannot produce it domestically or cannot produce
enough of it to meet demand.
A function of international trade whereby goods produced in one country are
shipped to another country for future sale or trade. The sale of such goods adds to the
producing nation's gross output. If used for trade, exports are exchanged for other
products or services. Exports are one of the oldest forms of economic transfer, and
occur on a large scale between nations that have fewer restrictions on trade, such as
tariffs or subsidies.
Most of the largest companies operating in advanced economies will derive a
substantial portion of their annual revenues from exports to other countries. The ability
to export goods helps an economy to grow by selling more overall goods and services.

One of the core functions of diplomacy and foreign policy within governments is to foster
economic trade in ways that benefit both parties involved.

STATEMENT OF THE PROBLEM

This study aims to determine the importance of Import and Export in the
Philippines and to know the exact answer and opinions of the students and professors
in the Lyceum of Subic Bay Customs Administration Department through the following
specific questions:
1. Is exporting goods to foreign nations will be an advantage to compete in
global economy?
2. Is exporting will benefit the nations economy?
3. Is it a must for the country to export goods to the foreign countries?
4. Does our country need to focus on importing goods from other countries?
5. Is exporting is our major priorities in international trade?

OBJECTIVE OF THE STUDY

The objective of this research is to gather data about the importance of Import
and Export in the Philippines. The data gathered from the respondents will be used as
concrete information if what it is more important (import or export) as factor of the
nations productivity thru international trade and global economy.

IMPORTANCE OF THE STUDY

To the researchers, through this study. The researchers will gather information
that will let us know what the importance of import and export in our country and the
advantage and disadvantage of too much importing and exporting across the different
nations of the world.

To the people who will study about import and export. This study will help them
to better understand the importance of what import and export has done to our country.

II. METHODOLOGY

A. Type of Research
The type of research that will be used in this study is qualitative. Qualitative
research aim to gather an in depth understanding in how the people of the Philippines
sees the practice of import and export in the country unto the international trade
industry. Questionnaires will be given to the respondents for the statistical
representation of the findings in the study, interviews with the respondents and a few
experts in this field will also be conducted.

B. Respondents
The respondents in this research will all be coming from one single location
Lyceum of Subic Bay, SBFZ. The researchers selected random Professors and
Students at the Customs Administration Department of the said institution. The
researchers chose the Customs Administration Department of Lyceum of Subic Bay
because of the topics that we will study are present in the field of the professors and
students of the department and also as it fits the time frame and resources of the
researcher. The randomly sampled respondents will be asked by the researcher for
consent and approval to answer the questionnaire until the desired number of
respondents which is 10 is reached. The opinion of experts will be also sought in this
research to provide explanations regarding the study.

C. Gathering of Data
The researchers used a questionnaire in getting the information needed for this
study. The questionnaire contains ten (10) items about the study. It requires information
about the economic changes in the country thru import and export. It also has questions
related to in what area does the Philippines must focus either import or export.

D. Sampling of Data
The researchers used tallying, total answers, and percentage for sampling the data.

PRESENTATION OF DATA AND ANALYSIS

I. Presentation of Data
The following data are the analysis of the opinions and answers gathered from
the survey that has been given to the 10 respondents from Lyceum of Subic Bay
Customs Administration Professors and Students about import and export. Here are
the opinions and answers to the questionnaire about import and export.
Table 1

Items

Responses
Yes
%
No

1. Is exporting goods to foreign nations will be an

advantage to compete in global economy?

10

100

2. Is exporting will benefit the nations economy?

10

100

100

40

60

50

50

3. Is it a must for the country to export goods to the

10
foreign countries?
4. Does our country need to focus on importing
4
goods from other countries?
5. Is exporting is our major priorities in international
5
trade?
Based from Table 1, the following data are observed:

1. Is exporting goods to foreign nations will be an advantage to compete in global

economy?
-in this question ten (10) respondents or one hundred percent of the respondents
answered that exporting goods to foreign nations will be an advantage to compete
in global economy.
2. Is exporting will benefit the nations economy?
-all of the respondents said that exporting goods to other countries will be
beneficial to the nations economy

3. Is it a must for the country to export goods to the foreign countries?

-Ten (10) respondents answered that it is a must for the country to export goods to
foreign nations

4. Does our country need to focus on importing goods from other countries?
-in this question about importing goods. Six (6) respondents said that our country
does not need to focus on importing goods from other countries.
-while on the other hand, only four (4) respondents said that our country must
focus on importing goods from other countries.
5. Is exporting is our major priorities in international trade?
-five (5) respondents said that exporting is supposed to be the nations major
priorities in international trade.
-also, five (5) respondents said that exporting is not supposed the be nations
major priorities in international trade.

II.

Analysis of Data

1. All of the respondents believe that exporting goods to foreign nations will be an
advantage to compete in global economy.
2. All of the respondents agreed that exporting will benefit the nations economy.
3. All of the respondents favored that it is a must for the country to export goods to
the foreign countries?
4. Majority of the respondents, comprising sixty percent of the respondents does not
believe that our country needs to focus on importing goods from other countries,
while forty percent of the respondents said that our country must focus on
importing goods from other countries.
5. Half of the number of respondents said that exporting is our major priorities in
international trade and the rest of the respondents said that exporting is not
suppose to be the nations major priorities in international trade.
III.

Summary

All of the respondents believe that exporting goods to foreign nations will be an
advantage to compete in global economy. They also agree that exporting will benefit
the nations economy and that it is a must for the country to export goods to the
foreign countries.
However, majority of the respondents does not believe that our country needs to
focus on importing goods from other countries, but rather our country must focus on
importing goods from other countries.
Finally, half of the number of respondents said that exporting is our major priorities
in international trade and the rest of the respondents said that exporting is not
suppose to be the nations major priorities in international trade.

IV.

Conclusion

Based from the analysis of data, the following conclusions are drawn to give
answers to what it is more important (import or export) as factor of the nations
productivity thru international trade and global economy:
1. Exporting goods to foreign nations will be an advantage to compete in global
economy.
2. Exporting will benefit the nations economy.
3. It is a must for the country to export goods to the foreign countries.
4. Our country does not need to focus on importing goods from other countries
5. Though exporting may be our major priorities in international trade, it can also be
considered as not the nations major priorities in international trade.
Therefore, export is more important than import as a factor of the nations
productivity thru international trade and global economy.

BIBLIOGRAPHY

http://www.investopedia.com Investopedia, 2013.

http://www.philexport.ph/ PHILEXPORT, The Philippines: General Economy and Export
Industry. 2012.
http://en.wikipedia.org/ Wikipedia: The Free Encyclopedia, Import and Export. October 2,
2014