POLITICALFACTORS

How and to what degree do govt. policies affect the economy

TAX POLICY

The exemption of those earning Php250k and below annually approved by the House of Congress via
HB5636 on May 31,2017 gives more money in the consumers pocket that they can spend to help grow
the economy.

LABOR LAW
Househelps -are entitled to a contract, pay slip,minimum wage, paid leaves and benefits in social
security and Philhealth since 2013. it gives security of tenure. Others would be paid maternity and
paternity leaves.

ENVIRONMENTAL LAW
Black sand mining among others are not allowed by the department of environment and natural
resources (DENR) to precent erosion of land and depletion of fisheries.. Any disruptive activities that
can affect the economy.

TRADE RESTRICTIONS

The protectionism viewpoint of Pres. Donald Trump to restrict the outsources jobs outside the US will
have a great impact to the BPO or Call Centers located in the country.

65% of service contracts comes from the US

Giving USD25B to the economy
Generating 1.3 M jobs as of 2016
Surpassing the remittance of OFWs which is supposed to be the bigggest dollar earner industry
Outperform India which is the leading call center service provider of the world.
BPOs CSR activities will affect the beneficiaries

TARIFFS
ASEAN Trade in Goods Agreement (ATIGA) gives 5% lower tariffs to imported dressed chicken since
2010. Effect is the launching of 1,000 branches of Chooks to Go and Uling Roasters cooked chicken
kiosks

POLITICAL STABILITY

A 2013 siege in Zamboanga caused a 3 weeks standstill in the economy of Zamboanga and in May
23, 2017 prompted Pres Du30 to declare Martial Law in Marawi City causing negative impact on the
toursim industry and foreign direct investments .
HEALTH
20% discount among PWDs and Senior Citizens
Patients cannot be refused reasobale treatment or asked advaned payment/deposit before being
admitted in Philippine hospital.

EDUCATION
In 2015 Pres. Benigno Aquino signed into law the K12 education system affected the operations of
many colleges without 1st and 2nd year college students.
In 2017 Pres. Du30 signed into law the provision of free college education in state universities.
All of these provides both negative and positive effect on the spending patterns of families.

INFRASTRUCTURE
The Department of Trade and Industry (DTI) encouraged big businesses to support SME's by making
sure they have more SMEs as part of their supply chain, which will create more inclusive growth to
benefit more small Filipino Entrepreneurs.

ECONOMIC FACTORS
The impact of a country's financial indicators on how businesses operate and make decisions

ECONOMIC GROWTH
A higher economic growth means more goods and services, expressed in GNP or GDP

INTEREST RATES
A higher interest rates means more interest expense to be paid and higher cost of capital.

EXCHANGE RATES
A higher exchange rate has 2 effects: for Exporters needs more pers when they ship out goods while
for Importers -imported products become more expensive to buy due to more peso for every dollar.

INFLATION RATES

Higher prices means higher inflation rate affecting the purchasing power which will lead to or warrant a
wage increase.

THE MOST IDEAL COUNTRY ENVRONMENT IS TO HAVE HIGH ECONOMIC GROWTH + LOW
INTEREST RATE + STABLE EXCHANGE RAE + LOW INFLATION RATE.
SOCIAL FACTORS
How a demand for a products and how firms should operate are affected by social demegraphics,
attitudes and opinions on several issues such as

Careers
Increase number of nighshift workers from BPOs has given a way to 24/7 convenience stores and fst
food chains catering to the millenial workforce.

Culture
Filipinos are attracted to earning in dollars to provide better future for the families causing lots of OFWs
and families migrating to other countries.
Higher social acceptance of the 3S single parenthood, separation and sexual orientation

Education
Most young educated career women prefer late marriages-perhaps they cannot cook as good as their
momshies giving rise to culinary equalizers lie Del monte and UFC receipts and various Cooking TV
programs .
Ethics
genetically modified foods vs organic
Health
Malling trend has given rise to health clinics-Healthway, Medical City, Prime Health
Safety
Knock on your door style of selling like Lux Marketing, selling vacuum cleaners, encyclopedia etc.
shifted to Multi Level Marketing
Housing
Condomonium and low cost housing
Fashion and Lifestyle
popular bloggers is now the new source of information rather than those persons in position to give legit
opinons
Immigration
PH as a diverse country with a mixture of many raaces from different countries.
Diversity
companies are becoming more sensitive to gender equality-GAD

TECHOLOGICAL
How technological aspects affect innovation, productivity, investment and cost.
R&D + Automation+Tech incentives (go green envi in doing biz) Rate of Tech Change

LEGAL
Discrimination Law + Consumer Law+Anti-Trust Law+ Employment Law+ Health and Safety Law

ENVIRONMENT
Weather and Climate Change