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India and China is now considered as important engines of regional and global
economic growth and that a strong economic partnership with the two would be
beneficial, as Tao Zhang, IMF Deputy Managing Director, have said4. India has become
an attractive economic partner and the World Bank has stated that private investments
in India is projected to grow by 8.8 percent in 2018-195. Meanwhile, China is the world’s
largest FDI destination6 and has continuously emerged as a strong superpower. Hence,
the Philippines should grab the opportunity to engage with two of Asia’s rising
economies once it arises. The Philippine economy should open its doors for the
unconventional choices that can guarantee growth and progress. Although every
economic partnership is beneficial, this is important to be highly well-thought out in
order to enable the country to align itself with other economic booming states.
The opportunities of FDIs are limitless given the advantages it has. However, it is
also a challenge for the Philippines’ setting. For instance, the Philippines cannot
ultimately accommodate FDIs that will not be suitable for the country. It’s like desiring
for a huge and wider national road and incessantly reconstructing, only to fail in the end
because it just cannot be; resulting to wasted time and energy, and discontentment. In
other words, without considering the country’s economic setting, FDI’s might not be an
opportunity, but instead a misfortune. Additionally, if there is no balance between
domestic and foreign investments, it is not impossible for FDIs to take power especially
over the Philippines’ economy. The inevitable rise of globalization can also affect the
FDI inflow and outflow of the Philippines. Globalization is empowered by FDI, hence the
advantages and disadvantages of FDIs influences globalization, leaving an impact on
the inflows and outflows of the country.
The Philippines, therefore, must prioritize at all cost the setting and capacity of
the country to accommodate FDIs. It should no less consider the possible investments
to open itself to, assuring that it will only result to opportunities, long-term growth, and
benefits. Second, the Philippine government should encourage domestic investors to
continuously pursue the economy of the country by providing benefits. Third, the
Philippines should continue exploring the endless opportunities provided by FDIs and
move forward expansion with complete thorough deliberation. Fourth, the Philippine
government should consider the neverending globalization and watch over the domestic
firms and protect them from the cons that FDIs also have. And lastly, the Philippine
government should educate the people of the Philippines about FDI and globalization
and how much of a benefit it is for the country, encourage them to engage themselves
within it, and assure them that the Philippines is capable and confident of being
competitive as well, despite being a developing country.
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1, 6Ramesh Chandra Das, Handbook Of Research On Economic, Financial, And Industrial Impacts On Infrastructure
Development (Hershey, Pennsylvania (701 E. Chocolate Avenue, Hershey, PA 17033, USA): IGI Global, 2017).
2Daxim L. Lucas, "FDIs surge to $10-B in Duterte's first full year," Inquirer Business FDIs surge to 10B in Dutertes