1. THE WORLD SCENE
1. FOREIGN INTERFERENCE
2. FOREIGN AND MULTINATIONAL
INVESTMENTS

2. Warren Edward Buffett is an American business magnate,
investor, and philanthropist. He is widely considered the
most successful investor of the 20th century. Buffett is the
chairman, CEO and largest shareholder of Berkshire
Hathaway and consistently ranked among the world's
wealthiest people. He was ranked as the world's wealthiest
person in 2008 and as the third wealthiest person in 2011. In
2012, American magazine Time named Buffett one of the most
influential people in the world.

3. OBJECTIVES
1. Be familiar with the terms relevant to the
lesson.
2. Define FOREIGN INTERFERENCE.
3. Differentiate the two types of foreign
interference.
4. Tell how foreign interference affects the
Philippine Education.

4. DEFINITION OF TERMS
FOR- EIGNˈfȯr-ən, ˈfär-
1. born in, belonging to, or characteristic of some
place or country other than the one under
consideration
2. of, relating to, or proceeding from some other
person or material thing than the one under
consideration
3. alien in character : not connected or pertinent
4. related to or dealing with other nations
5. not being within the jurisdiction of a political unit
(as a state)

5. in·ter·fer·ence /intərˈfi(ə)rəns/
1. The act or an instance of hindering,
obstructing, or impeding.
2. Something that hinders, obstructs, or
impedes.
synonyms:
intrusion, intervention, intercession,
involvement, trespass

6. Altruism or selflessness -is the principle or practice
of concern for the welfare of others. It is a
traditional virtue in many cultures and a core
aspect of various religious traditions and secular
worldviews, though the concept of "others"
toward whom concern should be directed can
vary among cultures and religions.
Humanitarianism
1. Concern for human welfare, especially as
manifested through philanthropy.
2. The belief that the sole moral obligation of
humankind is the improvement of human welfare.

7. WHAT IS FOREIGN INTERFERENCE?
Web definition
• Customer interruption beyond the
control of the utility such as birds,
animals, vehicles, unsafe excavation,
vandalism, or tree branches.

8. TWO TYPES OF FOREIGN
INTERFERENCE
1.POSITIVE- When other nations…
a. help a country in solving its problems
b. help a country to progress
c. help a country to maintain peace and order
2. NEGATIVE- When other nations…
a. terrorize a country
b. claim a country’s territory, wealth, etc…

9. PHILIPPINE ALLIES

10. ASSISTANCE THAT ALLIES CAN GIVE
1. a voluntary transfer of resources
2. Humanitarian aid –a. to support development in
general which can be economic development or
social development in developing countries. It is
distinguished from humanitarian aid as being
aimed at alleviating poverty in the long term,
rather than alleviating suffering in the short
term.
b. rapid assistance given to people in immediate
distress by individuals, organizations, or
governments to relieve suffering, during and
after man-made emergencies (like wars)
and natural disasters.

11. ASSISTANCE THAT ALLIES CAN GIVE
3. altruism is at least partly an objective for
the giving of aid.
4. it may be given as a signal
of diplomatic approval, or to strengthen
a military ally, to reward a government for
behavior desired by the donor, to extend
the donor's cultural influence, to
provide infrastructure needed by the donor
for resource extraction from the recipient
country, or to gain other kinds
of commercial access

12. POSITIVE FOREIGN INTERFERENCE
IN THE PHILIPPINES
US HELPS PHILIPPINES (OBAMA’S VISIT APRIL 28,2014)
On Monday morning, local time, the U.S. and the
Philippines signed a 10-year pact that will give U.S.
planes, warships and troops more access to the
archipelagic nation. The U.S. will not re-establish a
permanent base, but will rotate troops through.
The deal, officially called the Enhanced Defense
Cooperation Agreement, took eight months of
negotiation, and gives some substance to the
Obama Administration’s “pivot” to Asia.

13. NEGATIVE FOREIGN INTERFERENCE IN
THE PHILIPPINES
Territorial disputes are often related to the
possession of natural resources such as rivers,
fertile farmland, mineral or oil resources
although the disputes can also be driven
by culture, religion and ethnic nationalism.
Territorial disputes result often from vague and
unclear language in a treaty that set up the
original boundary.
Territorial disputes are a major cause
of wars and terrorism as states often try to assert
their sovereignty over a territory through
invasion, and non-state entities try to influence the
actions of politicians through terrorism.

14. NEGATIVE FOREIGN INTERFERENCE IN
THE PHILIPPINES
Freeze hiring or Hiring Freeze
A situation whereas an employer has temporarily put
into place that no further new hiring will occur for the
foreseeable future. This type of cost-saving effort is
put into place as a result of budgetary concerns, and to
capitalize upon existing production capacity.
A hiring freeze can put a strain on existing employees,
as there might not be any replacements for individuals
that leave the company (i.e. retirement, maternity
leave or regular turnover). If the situation gets too
extreme, overall performance may suffer and the
company will need to make exceptions to the hiring
freeze.

15. NEGATIVE FOREIGN INTERFERENCE IN
THE PHILIPPINES
Terrorism and war
TERRORISM refers only to those violent acts
that are intended to create fear (terror); are
perpetrated for a religious, political, or
ideological goal; and deliberately target or
disregard the safety of non-
combatants (e.g., military
personnel in peacetime or civilians). Some
definitions now include acts
of unlawful violence and war.

16. NEGATIVE FOREIGN INTERFERENCE IN
THE PHILIPPINES
WAR is an organized and often prolonged
conflict that is carried out by states or non-
state actors. It is generally characterized by
extreme violence, social disruption and
economic destruction. War should be
understood as an actual, intentional and
widespread armed conflict between political
communities, and therefore is defined as a
form of political violence or intervention. The
set of techniques used by a group to carry out
war is known as warfare. An absence of war
is usually called peace.

17. NEGATIVE FOREIGN INTERFERENCE IN
THE PHILIPPINES
Drug Trafficking
is a global illicit trade involving the
cultivation, manufacture, distribution
and sale of substances which are
subject to drug prohibition laws.

18. FOREIGN INTERFERENCE IN THE
PHILIPPINE EDUCATION
WITH POSITIVE INTERFERENCE…
Educational system will be more effective.
• During the time of natural calamities, with
the resources being provided such as food,
shelter and clothing, the continuity of
educating people will be possible
(e.g. TYPHOON YOLANDA IN LEYTE)
• When the economy is down, through the aid
of the Philippine allies, the economic stability
is secured.

19. FOREIGN INTERFERENCE IN THE
PHILIPPINE EDUCATION
WITH NEGATIVE INTERFERENCE…
There will be no possibility that the
educational system of the Philippines will
be stable. Since the country has no peace
and order, only ruins in the country will
be visible.

20. FOREIGN AND MULTINATIONAL
INVESTMENT

21. OBJECTIVES
1. Be familiar with the terms relevant to the
lesson.
2. Define MULTINATIONAL
INVESTMENT.
3. Have an insight on Multinational
Companies.
4. Tell how foreign investment affects the
Philippine Education.

22. DEFINITION OF TERMS
FOREIGN
• of, from, in, or characteristic of a country or
language other than one's own.
"a foreign language"
synonyms:
overseas, exotic, distant, external, alien, nonnative
MULTINATIONAL
• including or involving several countries or
individuals of several nationalities.
• a company operating in several countries.

23. DEFINITION OF TERMS
INVESTMENT
• In economics, investment is the accumulation of newly
produced physical entities, such as factories, machinery,
houses, and goods inventories.
• In finance, investment is putting money into an asset with the
expectation of capital appreciation, dividends,
and/or interest earnings. This may or may not be backed by
research and analysis. Most or all forms of investment involve
some form of risk, such as investment in equities, property,
and even fixed interest securities which are subject, among
other things, to inflation risk. It is indispensable for
project investors to identify and manage the risks related to
the investment.

25. Multinational consists of two different words ‘multi’ &
‘national’. Multi means many & national means countries or
nations. So multinational means a company which operates
in many countries. Such a company has branches, factories &
workshops in different countries.
WHAT DO YOU MEAN BY
MULTINATIONAL COMPANIES?

26. SOME EXAMPLES
1.Coca-Cola
2.BMW
3.Nike
4.Reebok
5.Sony
6.L.G.
7.Samsung

27. Giant Size: The assets & sales of multinational
companies are quite large. These companies operate on
large scales.
For example; The physical assets of IBM (International
Business Machines) exceeds 8 Billion$
International Market: Due to vast resource and
excellent marketing skills, a Multinational corporation has
access to international markets. It is able to sell its
products/services in different countries.

28. • Sophisticated Technology: Multinational companies
make use of latest technology to supply world class
products. They employ capital-intensive technology &
innovative techniques of production.
• Professional Management: A multinational
corporation employs professional experts, specialized
people & keeps updating the knowledge and skills of
their employees by imparting them training from time to
time. It employs professionals to handle the advance
technology.

29. EFFECTS OF MULTINATIONAL
AND FOREIGN INVESTMENTS
1. more jobs
2. alleviates poverty
3. maintains and spreads the benefits of the
country's current economic boom.
4. increase infrastructure

30. • Work culture for employees.
• Systems.
• Training and Learning.
• Technology – especially concept of working with
better technologies.
• Safety, Health and Environmental Learning's.
• Culture and Ethos.
• Excellent training grounds for many entrepreneurs.
KEY ADVANTAGES OF EXISTENCE OF
MNC IN THE PHILIPPINES

31. Home Country is a country in which
the headquarters of the
multinational company is situated &
the Host Country is country in
which one of the branches of the
multinational company works.

32. 1. The home country can obtain raw materials and
labours at comparatively lower cost.
2. It can export components & finished products.
3. It can acquire technical and managerial
expertise of foreign nation.

33. 1.Providing employment opportunities.
2.Multinationals will bring with them technology
and production methods that are probably new
to the host country.
3.The presence of one multinational may improve
the reputation of the host country.

34. 1. DEPLETION OF NATURAL RESOURCES:
MNC’s cause rapid depletion of some of the
non-renewable natural resources in host
countries.
2. ALIEN CULTURE: The MNC’s propagate their
own culture to sell the goods
For example: MNC’s are developing the habit
among peoples of eating synthetic food etc.

35. 3. Creation of Monopoly: MNC’s join hands with
big business houses & give rise to monopoly &
concentration of economic power in host
countries
For example: Since 2008, SMC has ventured beyond
its core businesses, becoming involved in fuel & oil
(Petron Corporation), aviation (Philippine
Airlines and PAL Express), power generation and
infrastructure.
4. Disregard of National Objectives: The MNC’s
prefer to invest in profitable projects. They fail to
solve the chronic problems such as poverty etc.
of Host Countries.

36. Foreign direct investment (FDI) is a direct investment
into production or business in a country by an
individual or company in another country, either by
buying a company in the target country or by
expanding operations of an existing business in that
country.
ROLE PLAY by FDI

37. 1. Greenfield investment (a new operation).
A form of foreign direct investment where a
parent company starts a new venture in a
foreign country by constructing new
operational facilities from the ground up. In
addition to building new facilities, most
parent companies also create new long-term
jobs in the foreign country by hiring new
employees.

38. 2. Brownfield investment (expansions or re-
investment in existing foreign affiliates or
sites).
When a company or government entity
purchases or leases existing production
facilities to launch a new production
activity. This is one strategy used in foreign-
direct investment.

39. 3. Mergers & Acquisitions (M&As).
A general term used to refer to the
consolidation of companies. A merger is a
combination of two companies to form a
new company, while an acquisition is the
purchase of one company by another in
which no new company is formed.

40. 4. Privatization & equity investment.
Equity capital that is not quoted on a public exchange. Private equity
consists of investors and funds that make investments directly into
private companies or conduct buyouts of public companies that
result in a delisting of public equity. Capital for private equity is raised
from retail and institutional investors, and can be used to fund new
technologies, expand working capital within an owned company,
make acquisitions, or to strengthen a balance sheet.
The majority of private equity consists of institutional investors and
accredited investors who can commit large sums of money for long
periods of time. Private equity investments often demand long
holding periods to allow for a turnaround of a distressed company or
a liquidity event such as an IPO or sale to a public company.

41. 5. New forms of investment (joint ventures, strategic
alliances, licensing).
A joint venture (JV) is a business agreement in which the
parties agree to develop, for a finite time, a new entity
and new assets by contributing equity. They exercise
control over the enterprise and consequently share
revenues, expenses and assets. There are other types
of companies such as JV limited by guarantee, joint
ventures limited by guarantee with partners holding
shares.

42. 5. New forms of investment (joint ventures, strategic
alliances).
A strategic alliance is an agreement between two or
more parties to pursue a set of agreed upon
objectives needed while remaining independent
organizations. This form of cooperation lies
between Mergers & Acquisition M&A and organic
growth.

43. 1. Helps in economic development of the
country in which invested.
2. Helps in creating jobs and increases
employment.
3. Resource transfer, countries are able to learn
newer forms of technologies and skills.
4. Increase in productivity due to newer
equipment.

44. 1.FDI hinders domestic investment, demand
for domestic investment decreases.
2. Exchange rates increasing in one and
reducing in the other.
3. Capital intensive from the investors’ point
of view.
4. Investment in certain areas is banned in
foreign markets.

45. FDI = Foreign Direct Investment
(measure of foreign ownership of
productive assets, such as factories,
mines and land. )
Annual Average Net FDI Inflows, in Current US $

47. Top 10 Companies in the Philippines for 2010 Based
from Philippine Business
1. Petron Corporation
2. Pilipinas Shell
Petroleum Corporation
3. Manila Electric
Company
4. San Miguel
Corporation and
Subsidiaries
5. Philippine Long
Distance Telephone
Company

48. 6. TI (Philippines),
Incorporated
7. Chevron Holdings
Incorporated
8. Nestle Philippines
9. Philippine Associated
Smelting and Refining
Corporation
10. Mercury Drug
Top 10 Companies in the Philippines for 2010 Based
from Philippine Business

50. It refers to getting a business task done from an
outside agency.
# Benefits of Outsourcing
1.Concentration on Core Competence.
2. Reduction in Cost.
3. Helps to avoid Labour Problem.
4. Benefit of latest development.
OUTSOURCING

51. means demanding highly specialized
skills and experience within a given
sector.

52. 1. It creates value for client.
2. It increases efficiency & cost saving
3. It provides error free works.
4. It leads to speedy delivery.
5. It assures the security of your
confidential information

53. A multinational company may not operate in
all of the countries in the world, choosing
instead to operate and even sell its goods and
services in only certain parts of the world.

54. The multinational play both positive & negative roles.
EDUCATION is indeed essential in this aspect for it is:
A. Education will be uplifted because of the progress in
the economy.
B. Competitive graduates are needed in the MNCs
outsourcing.