IMPORT – EXPORT IMBALANCE

“Among the many economic problems faced by the Philippines, one is the imbalance of imports and exports. The negative trade is heavy and only counterbalanced by the service account surplus. Over the last two decades, Philippine exports have shifted from commodity-based products to manufactured goods. However, in the midst of the current global economic recession, the exports of electronics, garments and textiles are yet to reach a level of import neutralization.”

http://www.buzzle.com/articles/economic-problems-of-the philippines.html

REACTION:

            As we all know, Philippines is now exporting new products like furnishings, products made of water lilies and many more. As I observed, we make our own products as our second choice. We rather chose to buy import goods such as from China, Japan, U.S, Finland and other neighboring countries. That is why our own products are not that kind of familiar to us. I think this is one of the long time problem of our country, the IMPORT-EXPORT IMBALANCE.

            Due to industrialization, Philippines have nothing to do with our other neighboring countries. Philippines can not compete with them because of labor cost which is higher than other countries and the same also with our raw materials.

            I think what we need is control the importation and only import product that is really necessary and products that we do not have. Exportation is one of the key in helping our economy and we must export all Philippine products and we need to make changes on the rate charges to invite more Philippine exporter and business owner to do export business.

            As what I have heard, most of the foreign investors are hesitant to invest in our country because of high labor cost and high cost of raw materials whereas if they invest in other country, they have lower costs than Philippines. Now, as I was doing this reaction paper of mine, there’s only one question that’s running on my mind and that is “why we Filipinos tend to praise and chose foreign goods than our own products?” If I know, Philippine made products have also high qualities and can compete internationally. I think one good example of this problem is the production of China products such as kitchen wares, herbal medicines, RTW’s and most especially cell phones. I think for the past few years, we tend to buy China phones than those brand new items because as we all know; their products are cheaper than ours and with others and compared to them it has  big difference(life span of the product is not included). Eventually, Philippines now is starting to compete with those foreign manufacturers, we now have and we’re now able to produce our own cellular gadgets (my phone & cherry mobile I think),  bio-diesel vehicles, herbal medicines, shoes, bags and many more. Maybe, this problem can be lessen f our government will be more strict with trade off’s of goods.