Case #1 CHAPTER 3:
Armour Garment Company
POINT OF VIEW
The group came to a decision of choosing the management’s point of view. It would be logical for the group to decide regarding with different matter if we are going to picture out the scenario as if the group is part of the management and was tasked to solve the dilemma. The group choose to tip in the management’s shoes –it was after the group’s thorough analysis of the case situation and further background study about it and then the verdict has been made. ANALYSIS OF CASE SITUATION
After the war, in 1946 the country became more dependent on United States for reconstruction assistance. In addition, prewar exchange rate with the US dollar was maintained and unrestricted imports were agreed upon by both parties. Eventually, in 1949 the Philippine economy had entered a crisis stimulating the government implement restriction of imports and foreign exchange control that pushed through until the 1960’s. The Philippine economy experienced a progressive growth during the first half of 1950’s as by an increase in income per capita compared to other East and Southern Asian countries. The implementation resulted to rapid growth of manufacturing net domestic product (NDP), averaging 12 percent growth per annum in real terms contributory to an average 7.7 percent growth in the Gross National Product (GNP). In the second half of 1950’s, the real GNP growth was down to 4.9 percent. In respond to this, the government took actions to oppose the declining economy by devaluating peso, abolishing import control, and placing significant tariffs. In 1968 growth rate of manufacturing sector recovered with an average of 6.1 percent per year. However, the real GNP growth averaged in less than 5 percent in the second half of the decade. This resulted to lack of growth in manufacturing sector’s share of employed labor force. The government pursuit of liberalizing the Philippine economy such as reduction of tariffs,...
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