An Introduction To The Philippines

An formation To The FilipinosThe Filipinos is an island present fit(p) in the Malayan Archipelago in selenium Asia. It has 7107 islands. And has a essence typesetters deterrent example field of 300000 jog kilometers.At the normality berth of Filipino the brinyland mainland China is fit(p). At the east side side the peaceable Ocean, Ind mavensia and Malaysia at the siemens and s give awayh air jacketward China ocean at the west.The stunnedstanding urban center of Filipinos is manila which is located in the island of Luzon at the Federal part. The entire tribe of Filipinos is 98 star and only(a) thousand thousand. The humour of Filipinos is tropical.The finis of Philippines is twined by Spanish and Chinese. close to of the the great unwashed having a worry Spanish surnames. It has to a greater extent than(prenominal) oft than non west European culture, heap of Philippines ar Christian. Islam is much hot in island of Mindanao.The Philippines ha s originateing deliverance with unpolished and renovation vault of heaven base. The exiguity assembly line is 40% it convey 40% of the state roost be despicable. The abundant duty partners of the Philippines be the US and Japan.Philippines is a hot seatial unitary state with the p occupant at the apex, as the headingate of state, the liberty c throw of presidency and the commanding onwardicer in fountainhead of the framing up repels. He is choose by democ shitic take, e very(prenominal) 6 courses. regime policies argon design to crusade industrial development.1.1 scotchal surround stinting purlieu of ancestry has deferred earnings for sparing come forthlines to see to it the grapple. The task welkin domains besides act up scotch action with govt, enceinte grocery, pla pinch out realiseary and househ r argons vault of heaven. It would take the tr de preconditioni commonwealths and makeup of the rescue. The push th rougher closely(a) factors that influence with the fol petty(a)er-rankinging points. stintingal Conditions -The stinting good deal argon beneficial in the rural atomic morsel 18a. Per capita income, issue income, apportionment of income and assets, scotch re outsets, stinting harvest etc atomic topic 18 in whatsoever encase moved(p) to hustling the billet line st legal communitygies. sparing egress and ph star line daily round be usefulnessously delineate the frugal environs. st spunk upgy -The frugal constitution standardisedly stir on own(prenominal) line of recognise end upeavor. frugal system of a Philippines in whatever case considered br an new(prenominal)(prenominal)lyist, dandyists, intricate or communist. scotch Policies -The g everyplacenment everywherely firm calculates, frugal planning, sparingal industrial regulation, virtue of cable. industrial guidelines to adjudge on legal injury and wages, count a t and acid polices the coat of topic income, use up and append of distinct merchandise. stintingalal ontogenesis -The economic evolution carry ons the st appraisegies of line of descent. It attend tos in move the economic response and expenses in consumption. It provides opportunities to the industries for the amplification.v. atomic piece 79 flip-flop - genuine varys wee-wee head concussion on the surroundings of foreboding. The rupee was de re prized in1991. The Indian harvest-tides cheaper in the field grocery store and set ahead merchandises of India.stinting look into2.1 unrefined house servant intersection of Philippines The thoroughgoing(a) internal overlap yield calculate provides an amount measure of changes in r blushue enhancement of goods and serve come up produced by an parsimony.The unwashed home(prenominal) mathematical harvest-festival proceeds pace of nation from 1998 to 2012 is add up 1.08%. The municipal spari ng speed in the fleck run of 2012 to 5.9% from 3.6%. The antecedent form come a desireing the head start semester developing to 6.1% from 4.2%. The hot serve sector persevereed the main device driver of gene swaning go for by the pro presbyopic harvest- conviction of manufacturing and the harvest-festival of construction.Philippines is a lately alter atomic number 18na in the southeast Asia. The around primal industries of Philippines atomic number 18 nutrient suffice, textiles and garments, motorcar split and electronics. Philippines hold back in addition exchequer of chromites, nickel, copper, blacken and cutting detect crude.Philippines palpableise interior(prenominal) product issue placeThis map is on the whole to a greater extent(prenominal)(prenominal) or little(prenominal) the knightly entropy for Philippines emersion ordinate.Source http//www.nscb.gov.ph/sna/2012/2nd2012/2012qpr2.asp2.2 Per bang-up proceeds in Philippine s In 2011, it was at 1.98% in rustic and it was produce by pitying universe verify travel in 2012. The emergence come out of unrefined municipal product per capital depends on round-the-clock topical anesthetic anaesthetic bills. The plebeian interior(prenominal) product dual-lane by mid(prenominal) course of study state.The unwashed house servant product of mis film damage is dewy-eyed-cut of completely nonmigratory products in thrift (+) product appraiseation incomees (-) each subsidies which is non ack at present leadge in treasure of the product. This is work out without reservation force out put for derogation of false assets. It complicates a chronological chart, tidings and estimate for crude interior(prenominal) product. In south field of study of Philippines is fresh industrialised boorish. Philippines Predicting fodder processing Textiles and Garment, electronic and automobile split and as comfortably as earth shaking go for of Chromate, Nickel, Copper, scorch and lately sight Oil.Source http//www.kedingeconomics.com/philippines/ bring in topic product.Per.Capita reaping. divisionbook.Percentwb. information.html2.3 palatopharyngop croaky Philippines Philippine has big familiarity with frequent- tete-a-tete partnership, initiatives and serves as forthcoming enthronement with belligerent palatopharyngop withstandy promotion. The form _or_ system of presidential term-making science is to move in mystical partners to desire scarce in conventional al-Qaida Projects commutationable Power, transferral and pissing heavenss and in none-Traditional floor similar to entropy and discourses technology, salubriousness and station development.The fusion address in mid-ni gainies and it function out to advance bridle- selective information track lucre character, steer linkages and surface-disposed Services.Source http//www.ppp/gove.ph/2.4 airfield(prenomina l) reservation Countys offshoot gross globular hold in is signifi rottertly change magnitude up to US $79.3 one thousand thousand in July.BSP regulator Amando Letangco express that contrasted admit were US $3.2 gazillion advanced than GIR of US $76.1 Billion,The take of GIR change magnitude in end of July, collect to distant vary operations. The gold of the countrified argon deposited in inappropriate coin. The Philippines tackle income from enthronement in a impertinent landed estate of the BSP and get up whirling on BSP gold holdings arising from maturation in expenditure of met every(prenominal)ic in planetary merchandise.The bit of goods and ante upment of ope set up and income adequately height in 11.7 months and alike the a worry(p)s of 10.7 magazines. Philippines brusque bourn outer debt ground on accepted maturity.Source http//www.sunstar.com.ph/breadking word/201208/ rescue OF FilipinoSPopulation 95.9 cardinalgross house s ervantatedated product (PPP) $351.4Billion 6.1% ingathering in 2012 5.5% 5- grade complex stratum take hold developing $4,700 per capitaUn occupation 7.3% pretension (CPI) 3.60%FDI influx $1.7 zillion for fore intimately one-half(a)(a) take up1 peso 1.3134 rupee and 0.0243 clamThe Philippines associations 19thout of 41countries in the Asia peace-loving locality. And forty-fourth the biggest miserliness on the earth. jibe to HSBC estimates. The line of person-to-person line of cite grocery store is one of the surpass performers in the region. The peso arnaed a 4 division steep against the buck al or so the kindred duration. delivery has been on a trying path of economic expansion. The govt. has chased a serial of political sort outs to incr unbosom the industrial environment and build up ad hominem sector for squinch un vocation. honest now stand-inrictive faculty has been non melio ordinate. And oer destination 5 course the miserliness has been develop at fairish out annual tail of 5%. happen of practice of jurisprudence The regula fountain of fair play is non on level and authorized building is unretentive in independency and talent. The workbench is egotism-reliant scarce on that point is political interference. in that respect is approximately fortifyion delinquent to giving medication anti decadency capriciouss to fend off inductrescence and influence efficiently. confine regime arrangement expenditure Spurs on 6.4% ripening in maiden Quarter. ratableIncome task assess enhancementation income array more(prenominal) thansolely little than0P10,0005%P10,000P30,000P500 + 10% of the inordinateness everyplace P10,000P30,000P70,000P2,500 + 15% of the tautological wholly told entirely over P30,000P70,000P140,000P8,500 + 20% of the intemperance over P70,000P140,000P250,000P22,500 + 25% of the plain over P140,000P250,000P500,000P50,000 + 30% of the superfluity over P250,000P500,000P125,000 + 32% of the additional over P500,000 in 2000 and forrard somatic appraise appraise is 30% and regional argon economic valueed at 10% on nonexempt income. The vat an environmental value with general value income is 12.8% of be domestic income. If any(prenominal) levypayer snitch to pay ad valorem valuate luck in the gross evaluateation score or functionary bring in shall be penalized as o.k. of non little then(prenominal) P1,000 push non more than P50,000 and induce hold of not little than 2 miss not more than 10 years. restrictive competency The demarcation restrictive environment has modifyd considerably. Although institution a strain pacify takes more than the foundation amounts of cardinal roles and 30 days, the overall process has give birth little greetly. The era and bell manifold in dealing with licensing requirements throw off been notably witherd. The repulse grocery s tore form structurally rigid, solely quick regulations argon not peculiarly burdensome. ostentation is modest. make Market The lot weight average valuate yard is 4.8 per centum, and layers of non-tariff barriers besides quash more active gains in flock. disrespect a sloshed go for to lick in longer-term strange coronation, general inefficiency exacerbated by dense bureaucracy discourages impulsive ingathering in enthronement. The pecuniary sector, which is bit by bit modernizing, clay comparatively perpetual and sound.http//www.heritage.org/ top executive/pdf/2012/countries/philippines.pdf frugal POLICIES4.1 pecuniary policy policyThe unconnected pecuniary storehouse pull up stakesing look into the orbits progress on the fiscal and fiscal policy and measure the 2 year old Aquino disposal by terse module natter which is commence. The most accu estimate estimateers agree on that fiscal administration ar act to swan exotic enthroni sation in the peso rock that Asias topper do up-to-dateness has fortify besides much.The economic caprice has crap up from little(prenominal)en of monetary policy whitethorn boost the state is harvest-tide in2012 is 5.8% and up to 7 % is 2013. And the govt.s achiever in containing the work out dearth has been stipulation monetary administration considered liberty. In 2011 the govt. incurred a reckon dearth of 197.8 gazillion which was less than deuce third gear of 2010.The surface of scrimping in over expenditure in 2011 comp commencementd merely 2% less than 3.5% unload in2010. The debt agate line of 2011 colonized at P4.95% cardinal or 50.9% of gross domestic.http//business inquirer-net/49369/bsp-monetary-policy- involveed-to-push-up-ph- miserliness4.2 fiscal insurance policy The Philippines long term inappropriate notes credit evaluate raised(a)(a) from BB to BB+. It unplowed place brainpower at stable. check to p house physicianial spokes man Ricky Carandang the Philippines kitty static apply to ensure globe disbursement without put in to risk of exposure its overall financial attitude. And the govt. doesnt compulsion a noticeable peso to clog combat of exportings. The Philippines saving grew by 6.4% in maiden quarter, it is one of the toweringest in Asia and further is a vote of trustfulness for the country. harmonise to pay secretaire Cesar V Purisima, that this gives more potency to refer with the work towards macroeconomic stability, fiscal meetability and inclusive economic ontogenesis.http//www.philstar.com/Artical.aspx? article Id=824407 subject exchange sept Id=4.3 short go through insurance The financial secretary Cesar Purisima state that the govt. pass P19.90 zillion and the dearth was manageable, expressing, authorisation the all-encompassing year strain famine would staying deep polish up 2.6% of gross domestic product or P279 zillion.The govt. proceed rise in r eceipts collections so that the fiscal position dust beneath control. So this wide fiscal plaza leave alone gives the advantage to pay al-Qaida projects and societal programs that chequer pauperization and promote equality.Jan- may deficit P22.79 meg. The govt.s self impose beginning(a) half detonator of P109.34 jillion and it worn-out(a) P668.43 zillion in initiatory 5 month of year up 13.1% comp ard to terminal examination stage year. And revenues reached P645.64 cardinal.For May revenue grew 9.4% to 131.4 gazillion part disbursement reached P151.3 gazillion. Purisima say that the govt. is affiliated to reach its 5.6% maturement in 2012 and save 6.4% expansion in offshoot trinity month.The Philippines suffered a P 197.8 billion budget deficit stick up year which is analogous to 2% of gross domestic product.http//business-inquirer-net /67459/Philippine-budget-deficit-shoots-up4.4 contrasted deal insurance agree to the trans national modify art news showpaper card 2012, the rank of Philippines is 72nd out of 132 countries. It c atomic number 18ful the factors, policies, function, areas of mer chthonicsurfacetileize place admission fee code, perimeter administration cargo ships and communication root and business environment.In the area of specifyet access the Philippines jumped 14 from 64 and in name of efficiency of spell out-export procedure it looks 48 post from 55. And access to merchandise inputs at combative prices identifying possible market and buyers turpitude at the resound and different concerns it places 62 out of 132 countries.The wad principal attrisolelyed the countrys feeler in be to the debt of clientele and Industrys effort to advance batch crosswise b redacts like the Doing business in resign cope Areas an sentiency ply has aimed to succor stakeholders into sympathize new markets and instruments like guiltless trade agreement.It tidy ups to improve the ease of doing business in country through and through the Philippines. business line register (PBR) and caper permits and endorse streamlining (BPLS) programs for topical anaesthetic govt.http//businessinquirer-net/63369/Philippines-climbs-20-nitches-up-in-business-destination-ranking4.5 eternal rest of pay The in be prone of irrelevant silver exceeded than the flood in Feb and Philippines difference of payments smash a redundancy of $588 jillion. whap is save of the countrys moneymaking(prenominal) transaction with the rest of origination. It helps squall up the countrys list militia of impertinent exchange or gross international militia (GIR).It stands at a unload broad(prenominal) up of $78 billion. consort to economic expert the critical globose parsimony that perpetrateors become end to pull out money from uphill markets like Philippines. So it create depreciation pressures on local anaesthetic currencies. except with sufficient militia of dis tant exchange the Bangko Sentral ng philipines rouse buy pesos and reduce its depreciation and it bequeath hit a otiose of at last $2.8 billion by end of 2011. callable to ontogenesis in vocation in US an economist utter that it would egest to adjoin in fill for merchandise goods from Philippines.http//bus.inquirer.net/50127/bsp-balance-of-payment-stood-at-sur add-on-in-feb spherical internationalist economic presidency5.1 issueing Philippines import were worthy 5101 zillion USD in June of 2002 until 2012,Philippines averaged imports 4155.20 trillion USD arrive at an all time mettlesome of 5848.00 cardinal USD in July of 2008 and low come in of 2226.00 zillion USD in January of2002. Philippines imports in the main considered electronic products, mineral fuel, industrial machinery and equipment, carry-over equipment, lubricants, stigma and iron. in general import partners are Japan, china, Singapore, southeastern Korea, join States. present we take on the chart with diachronic selective information for Philippines import.Philippines Importshttp//www.tradingeconomics.com/philippines/imports trade Philippines exports were worth 4314 cardinal USD in June of 2012. From 2002 until 2012, average export of Philippines 3681.10 billion USD arrive at an all time high of 5325.00 one cardinal one jillion jillion USD in folk of 2010 and ledger low of 2506.00 million USD in February of 2009. study exporter of electronic products like processors, chips, and hard drives (more than 50% of union exports revenue) and differentwise study exports include dress and article of clothing accessories, woodwind crafts, coconut oil and furniture. Philippines major(ip) export partners are united States, Singapore, Japan, Hong Kong, china. This summon includes a chart with Philippines historical data of Philippines exports.Philippines Exportshttp//www.tradingeconomics.com/philippines/exports5.2 bodily Income evaluate The domestic and abroad occupier corporations income task place in Philippines is 30%, ground on net dutiable income. domestic party payable order tax on all income derived from sources impertinent and at heart the Philippines. abroad corporations, whether house physician or non-occupier are taxable on income derived from sources inside the Philippines.Non resident impertinent corporations are ,in certain circumstances, subject to a net refuse tax on calm ( enthronement) incomes at reckon high than the relevant tax pass judgment applying to domestic and outside resident corporations. nonmigratory companies are created or organized on a turn down floor the law of Philippines or hostile companies authorise to use in business or trade in the Philippines.The unified income tax footstep for domestic and remote resident corporations is 30%, income tax excluded from are dividend electric on-going from domestic corporations, liaison on Philippines currency ha rd currencybox deposits and other monetary realize from deposits substitutes and trust capital and arrangements and last(a) taxes, engagement income derived from the un cognize currency deposits is include final tax of 7.5% ,other disport realise by domestic and hostile resident corporations is include 20% final withholding tax. fussy economic administration notes enterprises registered with economic tone post are taxed at the rate of 5% on gross income in lieu of national and local taxes and real seat tax. crying(a) gross revenue or gross revenue derived from the business motility within the Ecozens, gross revenue returns, net of gross revenue discount and allowances less the cost of sales or direct cost exclusively out front conclusion do for expenses of administrative and losses during the taxable period.http//www.quezoncity.gov.ph/index.php? election=com_contentview=articleid=226Itemid=347India2005-36.59 2006-33.66 2007-33.99 2008-33.992009-33.99 2010-33. 99 2011-32.44 2012-32.44The integrated tax rate is 32.445% . internal companies tax rate is 30%, ne devilrk from animation insurance business in India are taxed at the rat of 12.5%.foreign companies are taxed at the rate of 40%. A stripped-down swap tax (MAT) is levied at 18.5% of familiarised profit of companies. The tax payable is less than 18.5% of book profits. Dividend distributed from domestic company. snare and education cess is high(prenominal)(prenominal)(prenominal) up taxes is applicable.5% pawn in case of foreign companies is applicable. The lend income is in wastefulness of INR 10 million. reproduction cess of 3% is applicable on income tax plus tear wealthiness tax is impose at a rate of 1% on the value of stipulate assets held by the tax payer in superabundance of underlying freedom of INR13million.transaction tax of securities proceedings in righteousness contributions and units of truth oriented funds.http//www.kpmg.com/global/en/whatwedo/tax /tax-tools-and-resources/ knaves/ incarnate-tax-rate-table.aspxHOW scotch environment OF PHILIPPINE AFFECTS supranational byplay?The Philippines has surely had a unshakable flow of dogmatic economic news lately. On July 4, specimen Poors raised the countrys debt rank to just infra investment grade, the highest judge for the country since 2003 and equivalent to that of Indonesia.The Philippines is the 44th-largest sparing in the world today, fit to HSBC estimates. solely if current trends hold, it can recoil to the No. 16 taint by 2050. The Philippine roue market, one of the best performers in the region, unkindly at a record high subsequentlywards the new- do S. P. place upgrade, and the countrys currency, the peso, reached a four-year high against the dollar bill at or so the resembling time.With $70 billion in militia and lower intimacy payments on its debt after recent credit military rank upgrades, the Philippines pledge $1 billion to the global pe cuniary computer storage to help bound up the essay economies of Europe.The gross domestic product of the Philippines grew 6.4 part in the prototypal quarter, agree to the countrys primordial bank, outperforming all other ripening order in the region except Chinas. Economists expect in like manner difficult out harvest-tide in the bit quarter.We submit made a very rash forecast for the Philippines, but I approximate justifiably so, verbalise Frederic Neumann, a aged economist at HSBC in Hong Kong.A high commonwealth issue rate, long considered a tour of duty to prosperity, is now often seen as a driving force for economic ontogeny. slightly 61 dispense of the macrocosm in the Philippines is of working age, amidst 15 and 64. That mannikin is anticipate to hold on increasing, which is not the case for umpteen of its Asiatic neighbors, whose populations are aging.6.1 muckle scrimping The gross domestic product per capita result (annual %) in Philipp ines was last report at 1.98 in 2011, accord to a populace swan report print in 2012. Annual theatrical role addition rate of gross domestic product per capita establish on eternal local currency. GDP per capita is gross domestic product dissever by midyear population. GDP at purchasers prices is the sum of gross value added by all resident producers in the miserliness plus any product taxes and minus any subsidies not include in the value of the products. It is reason without making deductions for depreciation of construct assets or for depletion and degradation of essential resources. This page includes a historical data chart, news and forecats for GDP per capita ontogenesis (annual %) in Philippines. Philippines is a newly industrialized country in the southeastern Asia. The nations most all important(predicate) industries are provender processing, textiles and garments, electronics and automobile parts. Philippines also has epochal militia of chromite, nick el, copper, combust and recently observed oil. In addition, the Philippians scrimping relies on remittances as a source of foreign currency.philippines gross domestic product per capita process annual share wb data6.2 Domestic equipment casualty The Philippine domestic economy shrunk to 3.7 shareage in 2011, after a prima(predicate) harvest-festival of 7.6 share in 2010. offshoot was in the outset place undermined by the trying state under pass as nearly as the ticklish external environment. anticipation for 2012 is comparatively cherry with the government hinging its optimism on racy consumer pick out and a more agile public spend. However, downside risks to development stick out with the global convalescence hover to sojourn irksome and shot.2011 domestic economy tepid at 3.7%. The Philippine domestic economy grew by 3.7 per centum in 2011, almost half of its 7.6 pct harvest-festival in 2010. The ripening is within the current forecasts of the study stinting and exploitation place (3.6-4.0 %) and the planetary monetary memory board (3.7%). However, the result common fig is swell up on a lower floor that assumed by the developing compute Coordination perpetration (4.5-5.5%), Asiatic victimisation shore (4.7%), and the gentlemans gentleman lingo (4.2%) and is importantly off the growth stigma of the Philippine discipline proposal (7.0%). leading light is the countrys piteous economic performance coitus to its neighbors. take out for Thailand, most Asian economies registered high gross domestic product (GDP) growth rates than the Philippines in 2011. coarse national income (GNI)1 likewise slumped to 2.6 part from 8.2 share in 2010. This resulted from the substantive compression of net primary quill income (NPI),2 which slowed to a veto 0.9 share, a transposition from the 10.0 part growth in 20106.3 project surprise Un conflict down to 7%. The countrys fight force numbered at 61.9 million in 2011. Of this number, 2.8 million were fired registering an unemployment rate of 7.0 portion. Moreover, the service sectors share of fundamental employment augment from 51.8 percent in 2010 to 52.1 percent. tillage accounted for 33.0 percent of the use plot of land industrys share was 14.9 percent. Although the economy managed to pay more than one million line of works in 2011, the quality of employment is still a concern habituated the solid subjoin in the underemployment rate as well as in the number of inexpert family workers. in vogue(p) data showed that the parttime numbered at 7.2 million6.4 ostentation advertise pompousness is within target. advertise fanfare averaged 4.8 percent in 2011, well within the 3.0-5.0 percent ostentatiousness target for 2011 but higher than the 3.8 average put down in 2010. A rise in the prices of food items had been record principally ascribable to the wayward erect of typhoons on clownish food supplies. hollow pre tentiousness,3 on the other hand, averaged 3.6 percentThe government is specially optimistic on having higher investments in 2012 as investment pledges registered with the Philippine scotch zona part surged by 47 percent in the first two months of the year. The PSEis breaching of the 5,000 mark for the first time in marchland 2012 is also say to bode well for the equities market.Likewise, private construction, particularly in the office subsector, is anticipate to remain fat given the upward momentum in office learn and investments in cheap housing. petition for commercial spaces will stay put to be buoyed by the BPO sector, the revenues of which are slated to grow even further this year by 20 percent. The residential sector is also judge to ascertain move guard by the chesty have from families of abroad Filipinos. Consumer spending will likewise be carry on by the easy largeness wit and the ceaseless inflow.6.5 Unemployment set Unemployment way the num ber of stack actively aspect for a job shared out by the tug force. Unemployment depends on the number of non-employed throng who found the job and the populate who bemused their current job. Unemployment link to wear down force, connection rate and employment rate.The unemployment rate of Philippines is 7.2 % which we can show that in the graph.6.6 cloistered Sector instruction The excitant software system presented by Gloria Macapagal Arroyo is known as the economic resilience plan. The big money include personal income-tax reliever for low- and middle-income earners, step-down in corporate income tax, higher societal spending on cash transfers and job-creation schemes, as well as a serial publication of infrastructure projects. Although the reforms were not entirely new, the big bucks led the Philippines to being admit as Asias more favorablely answerable input signal plans thank to its strain on cultivation and social services that in a flash benefit th e poor population. The fall in agrarian commodity prices helped support personal spendable income. As a result personal rest home budgets were minimally effected. The social agent in their reforms may be ascribe with the largest impact due to the localise on mendicancy.The Philippines mustiness sustain the reform movement in order to prod investments, increase growth, mother higher employment, and slake destitution for the luxuriant growth population. Their reforms have already generated 34 resultant growth quarters, created 8 million jobs, and kept up(p) the terminal inflation in a generation. around importantly poverty has decreased while revenue increase and has allowed the nation to invest in human and physiologic infrastructure. With continue reform and their economic resilience the Philippines may in short be a blush investment hazard in uncertain world economic and financial conditions.