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Country Risk Analysis: Philippines

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Submitted By mifiari
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Country Risk Analysis: Philippines

As trade barriers continue to fall and technological advances accelerate, the offshoring trend will continue as companies strive for operational efficiencies by outsourcing production and labor and taking advantage of capital markets. International business is not a new phenomenom, however the volume of international trade has increased dramatically over the last decade. Today, every nation and an increasing number of companies are investing abroad. Private and public investors must determine which countries offer the best prospects for sound investments. The decision to invest overseas begins with a determination of the riskiness of the investment climate in the country under consideration. In this paper we will evaluate the country risk analysis of investing in Philippines.

The Philippines is the third-largest English speaking country in the world, enabling its manpower to have a unique edge over neighboring countries in terms of labor quality. Flanked by the Pacific Ocean and the South China Sea, its strategic location makes it a critical entry point to some 500 million people in the Association of Southeast Asian Nations (ASEAN) market, offering vast trade opportunities, and an ideal base for business. It is also the best Asian country in terms of overall quality of expatriate life, considering its cultural compatibility with expatriates, housing, sporting and recreational facilities, quality healthcare, and first-rate educational institutions. Being an archipelago, the Philippines has a lot to offer as well in terms of natural resources. Its 7,100 islands boast numerous white and black sand beaches, making it eminently attractive to vacationers and tourists. Its amazing marine biodiversity affords abundant species of flora and fauna. Land-wise, it is also among the biggest producers of copper and gold in the world.

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