"The chief business of America is business" - President Calvin Coolidge, 1925
However, by concentrating on such we do not seem to appreciate (and lose awareness of) the fact that economics: national economic development aka political economy is also vastly important and that --at this point in our national history-- requires equal, if not more, attention from the us native citizenry.
In theory, this would bring the trade account into balance by increasing foreign exchange earnings from cheaper Philippine goods while decreasing outward cash flow for now more expensive imports.
Incentives for foreign corporations included:
- Permission for 100% foreign ownership
- Permission to pay a wage lower than Manila's minimum wage
- Low rents for land and low charges for water
- Government financing of infrastructure and factory buildings, which could be rented or purchased at a low price
- Accelerated depreciation of fixed assets
- Workers in the electronic industry tend to suffer from eye defects after 3 years of employment. Others complain of acid burns, skin rashes from epoxy resins, and other reactions due to solvents like trichloroethylene. Even if they are given gloves and masks, they do not use them because that slows them down and makes it difficult to reach their quota. They are not required by the company to use them, and, in fact, are not taught about the need for protective devices(10).
- In the tuna canning industry, 95% work under temporary contracts and 85% are women. when orders are high, workers are forced to work 12 hour-days; when demand is low, they get a few hours work. work is very tightly controlled. Workers are not allowed to speak to each other during work hours, they are not provided with drinking water, they do not receive sick or holiday pay, and wages are very low (11).