Skip to main content

Four Good Reasons Why Foreign Investment IS NOT Foreign Invasion

I'm getting sick and tired of ultranationalist Failipinos who keep saying stuff like, "If we get rid of protectionism, if we allow foreigners to have higher degrees of ownership, foreigners will invade our country." Oh puh-lease, the whole idea is getting old and not to mention stupid. I would like to tackle on why foreign investment is NOT foreign invasion.

Here are four simple reasons why foreign investment is NOT foreign invasion which totally makes FLIPFAG Economics 101 wrong on several levels:

1.) In the history of trading, foreign trading never has the merchant taking over foreign soil.

Whenever a businessman does trade in a foreign country, he is not there to colonize the country. Rather, he does business there and must bow down to its head of state even if he has 100% ownership. That is like as the saying, "In Rome, do as the Romans do." There is a huge difference between the Spanish conquest and the Chinese trading with the Philippines. The Chinese trading with the Philippines was purely business. That is the Chinese DID NOT arrive to claim the Philippines for their emperor. However the Spanish both Ferdinand Magellan and Miguel Lopez de Legaspi were sent to claim the Philippines. The difference was that the Chinese solely did business and NEVER had the intention to take over. The Spanish took over the Philippines.

2.) Buying stuff from foreign investors in your country are still revenues for your country

It's time for a little logic isn't it? If a foreigner does business in the Philippines, where does he or she pay taxes for income earned in the Philippines? It does not go to their country of origin but to the Philippines. You only pay for taxes you earn in the country you invest in. If a foreign business makes PHP 1,000,000 a year in the Philippines, all that taxes is still taxable to the FILIPINO GOVERNMENT! Buying a hamburger from a Philippine branch of Burger King is still revenue for the Philippines. Even if I buy imported stuff left and right from a Philippine ran store, it is still convertible to taxable income for the Philippine government. Aside from taxes, foreigners must still comply with the necessary departments if they want to continue doing business in the Philippines.

3.) Foreign investors may be urged to buy from local suppliers to produce cheaper hence generating revenue for local businesses

If more foreigners invested, wouldn't that mean more customers for local businesses? Some businessmen prefer to use locally sourced products to have a cheaper production, instead of shipping from their home country. It would be impractical for an Italian restaurant to have all its supplies shipped from Italy so they make sure some of their raw materials are from local suppliers in the Philippines. If foreign businesses have Filipino suppliers, it would mean extra income for the local businesses. Even if the buyer is a foreigner, they are still paying money to local businesses.

4.) Lastly, a foreign boss must still bow down to the Philippine government

Some may argue that, "But my boss will be a foreigner." type of whining. What they fail to see or purposely ignore is that even if you will be under a foreign taskmaster, that taskmaster is still under the authority of the Philippine government. He or she must still comply with the laws of the Philippines. He or she as said is not here for political conquest. For example, even if you own 100% ownership in Dubai, you are still to follow rules like no eating of pork or in the case of India, no eating of beef. Any violation done may result to the business shut down or deportation for violation of the country's policies.


  1. The first reason is actually why Japan kept other foreigners out of the country during the Tokugawa era except the Dutch. Correct me if I'm wrong, though.

  2. ^that only happened because it was the 1800s. It's now the 21st century. No one does that anymore except those people in power who has a 17th century brain


Post a Comment