This survey aims to research how globalisation has affected the nutrient industry in the Philippines. By looking at the Nestle Company, the research paper seeks to look at Multinationals as agents of globalisation and how they have affected the Philippines ‘ nutrient industry.
Research design/methodology: – This survey employs descriptive research method. This type of research attack involves informations analysis, and a peculiar set of inquiries, which do non debar certain subjects. The research worker analyzed the informations presented on the impacts of Nestle in the nutrient industry in Philippines guided by specific designed inquiries.
Findingss: – The survey found out that Multinationals act as agents of globalisation. By looking into the Nestle Company, the research found out that Multinationals act as agents of globalisation impacting the nutrient industry both negatively and positively.
Restrictions: – The research employs primary and secondary informations hence it would be hard to happen out whether the information is true or biased.
Recommendations: – In order to make a generalised decision, more survey demands to be conducted in this undiscovered country of survey.
Value: – Sing the rise of Multinationals, the paper will help authoritiess to be able to implement proper policies while covering with Multinationals in their state provinces.
Cardinal words: -MNC ( Multinational Corporations ), globalisation, socialisation, colonisation, 3rd universe states.
Chapter One
Introduction, Aims and Objectives, Research Questions and Hypothesis
1.1 Introduction
This research paper is designed to measure the effects of globalisation on the nutrient industry in the Philippines. It is motivated by the contentions that have surfaced on the function of these Multinational Corporations ( MNCs ) as agents of globalisation in the Philippines. Globalization has resulted in a batch of positive and negative impacts particularly in the 3rd universe states ( Robertson, 1992 ). In the sector of agribusiness, harvests that have been imported can be bought at cheaper monetary value than domestic merchandises. Nations provinces like the Philippines, which depend on agribusiness as their chief export and import have suffered a batch as a consequence of globalisation. The Filipino agricultural sector merely accounts for 14.8 % of the gross domestic merchandise ( GDP ) ( Frost, 2003 ). For case, harvests that are imported could be bought at a much cheaper monetary value than value. This is because globalisation has created the free trade country as stated by the World Trade Organizations.
Hence, state provinces with higher productiveness in agribusiness could dump their green goods to their opposite numbers in the 3rd universe state province. This means that the 3rd universe state provinces will be given sub criterion green goods ( Frost, 2003 ). By definition, globalisation implies the motion of information and people across boundary lines of any state province. Consequently, this transportation has control over the nation-state ‘s political, environmental and cultural personal businesss ( Dasgupta, 2004 ). Economically, globalisation has been able to help state provinces to turn through the debut of assorted Multinational Corporations like the Nestle. As a consequence, these foreign direct investings bring a batch of foreign exchange in the host state province. This foreign exchange comes from the sell of Philippine ‘s agricultural green goods and merchandises in the international market. This is a positive consequence in the economic system of the state province.
However, in many Asiatic state provinces like the Philippines, bulk of the population are plagued with poorness. This means that these people are more willing to work and gain the lower rewards that the MNCs ( Multinational Corporations ) would give them. As a consequence of globalisation, many transnational corporations have set up their subdivisions in these state provinces. MNCs ( Multinational Corporations ) like Nestles have managed to put up their fabrication installations in these state provinces to profit from the inexpensive labour ( Jensen, 2008 ). This has affected the nutrient industry in the Philippines as many local nutrient industries are able to entree inexpensive labour for their industries.
The new industries assist the hapless state provinces to work out their crisis of unemployment therefore cut downing poorness in the nation-state. In add-on, this may assist in increasing the populating criterion of the people and increasing the part that the lower category in the society makes in their GDP ( Frost, 2003 ). This ensures that the local husbandmans are empowered from their agricultural merchandises therefore developing nutrient industries in the Philippines. Furthermore, lower category is socialized to be able to devour the merchandises produced by these transnational companies. This creates local market for the merchandises from the nutrient industries therefore bring forthing income ( Robertson, 1992 ). Consequently, Nestle has become really important in constructing a Food industry in the Philippines.
From a negative position, globalisation has resulted in Multinational Companies like the Nestle that tend to work their workers. This is particularly in the hapless state provinces like the Philippines. This is chiefly because such nation-states lack proper policies and ordinances to guarantee that the MNCs act consequently ( Jensen, 2008 ). This affects the local nutrient industry because the domestic nutrient industries are non able to maximise on the Filipino market like their international opposite numbers. Most Multi subjects aim at cut downing their outgo costs while staying competitory to the domestic market.
Furthermore, most of these MNCs destroy the environment in the host states because of deficiency of proper environmental policies ( Athukoralge, 2007 ). For case, in the financial twelvemonth 1980, a US chemical concern Union Carbide in India endured really hapless working environment. The chemicals in the terminal resulted in detonations that killed really many people ( Athukoralge, 2007 ). These companies seek to non merely gaining control but besides to command the resources of the host state province. This affects the nutrient industry because the devastation of the environment leads to the devastation of nutrient harvests and the sum of rainfall that may come in the Philippines. Consequently, this reduces the harvest outputs of that twelvemonth.
With this background, it is imperative to observe that this research will use Nestle, to picture the impact of globalisation in the nutrient industry in Philippines. The research will look into both the harmful and positive features of globalisation by looking into Nestle ‘s personal businesss in the Philippines ( Nestle Philippines, 2011 ). Soon, the Nestle is known as a really established organisation globally. The company has assorted nutrient and drinks amongst its list of merchandises. Past instances will be employed to picture the impact that globalisation has in the Philippines nutrient industry.
Background
The economic system of Philippines to a great extent depends on agribusiness for endurance. The state of Philippines has a high degree of instruction and literacy rate. The economic system of the Philippines is comparatively strong with moderate nest eggs rates. It has been ranked as the 46th state province globally economic wise. Additionally, the state province has an export oriented agricultural sector ( Nestle Philippines, 2011 ). Consequently, this has resulted in the coevals of sufficient foreign exchange for the economic system. Despite the fact that it was rich in natural resources, the economic system of Philippines is agricultural and produces staple nutrient to back up the economic system.
However, the state had started turning economically with the entry of major corporations like Nestle. The Philippians ‘ industrial sector was increasing at a really fast gait. Consequently, the state province was named as one of the states with the extreme salary net incomes in the Southeastern portion of Asia ( Divina & A ; Roldan, 2010 ). Many alterations in the Philippines have been brought about because of globalisation. Furthermore, globalisation through MNCs has brought huge incursion of engineerings and huge incursion. This has affected the nutrient industry as more husbandmans are able to venture in the nutrient industry availing more merchandises to the consumers.
The Nestle Company began from a simple thought into a elephantine transnational corporation. In 1866, a druggist named Henri formulated a nutrient expression for babes who could non be able to digest chest milk. As a consequence, the merchandises became so successful that the full Europe demanded for the merchandise ( Nestle Philippines, 2011 ). Because of the popularity, great companies desired to unify with it. Between 1866 and 1947, the company had changed its name independently to accommodate the amalgamations. For case, in 1905, a company named Farine Lactee Henri Nestle and Anglo-Swiss condensed milk Co merged with Nestle to make Nestle & A ; Anglo-Swiss Condensed Milk Co. These consolidations permit a company to better on the efficiency of production through scale economic systems. In add-on, these amalgamations result in the shuting down of houses that are less efficient. This is usually seen as a really fast manner for companies to spread out on their merchandise offering and in bend addition market portion. Furthermore, some companies engage in amalgamations and acquisitions to barricade other companies from going greater participants in the market. Most of the nutrient makers enter the foreign markets through foreign direct investings like in the Philippines.
The Nestle Company has been able to remain successful for a really long clip. Consequently, this has created room for them to be able to spread out their markets globally doing them the universe ‘s greatest drink and nutrient industry ( Schwarz, 2003 ). The Nestle Company has made the nutrient industry to point itself more to its clients instead than themselves. The advanced engineering has enabled them to cognize the involvements of the consumers and therefore do merchandises that can accommodate their demands. Agricultural goods like spoiled milk that could non be used has now been turned into a tradable substance because of globalisation. Their central office ‘ is locates in Vevey, Switzerland ( Nestle Philippines, 2011 ).
However, most of the company ‘s industries are located in many parts of the universe. Since the publication of the company ‘s instance in 1998, Nestle has, managed to use about 230000 people worldwide. Presently, the figure has increased to 253000 people and over 88 billion dollars of gross revenues. This means that the company is increasing on an one-year footing. Additionally, the company has managed to increase their merchandises that they offer to their clients. Their concern scheme has been chiefly to promote the growing of their merchandises through assorted inventions and redevelopments. Consequently, the scheme has enabled the company to be able to make many other merchandises like breakfast cereal, babe nutrient, dairy merchandises, cocoas, ice picks, prepared nutrients and drinks.
The company has besides diversified to bring forth favored nutrients, nutrient services and H2O that are bottled. This means that the Nestle Company has managed to put the gait for the criterion of nutrient to be consumed by the Filipinos. Finally, nutrient governments have come up to look into on the criterion of nutrient that is being produced in the Philippines. Currently, Nestle Philippines has been able to use over 3200 employees and back up 1000s of people indirectly. Nestle has managed to set up three mills and a 4th one is coming. The company claims to supply the Filipinos with merchandises that will convey a healthy and happy life. In add-on, the Multinational Company endeavors to go good and caring to the corporate citizens and in guaranting that the public assistance of the Filipinos is taken attention of ( Divina & A ; Roldan, 2010 ).
The Nestle Company has had several accusals on its development of workers in the nutrient industry. In 2002, the rights of more so 600 workers was violated by Nestle in the Cabuyao mill ( Cabuyao workers briefing, 2009 ). The workers desired to implement their rights and to negociate with the directors on their retirement benefits. This was because the Multinational had non included retirement benefits on their employment contract at Nestle. However, the Nestle direction purported that it was the company ‘s determination to make up one’s mind whether or non they would give their workers the benefits ( Cabuyao workers briefing, 2009 ). The Supreme Court of Philippines gave justness to the workers and stated that retirement benefits ought to be a topic to be discussed by both parties. Despite all this, the Multinational has non complied with the opinion. As the set pacemakers in the nutrient industry, the Nestle has made other nutrient industries like the MacDonald ‘s to follow suit.
1.2 Overall Aims and Objectives of the research
Globalization has significantly affected nutrient industry in most developing state provinces. This is because of the liberalisation of the economic system and great technological progresss. Through assorted Multinational Corporations like the Nestle, globalisation has managed to happen in state provinces like the Philippines. This has affected the nutrient industry in many ways both positively and negatively. The colonial constructions set by the European powers ensured that the economic systems of these developing state provinces wholly relied on the developed states ( Jensen, 2008 ). This has made the economic systems of the 3rd universe state provinces like the Philippines to a great extent rely on developed states for economic prosperity.
Against this background, this research desires to look into the effects of globalisation in the nutrient industry in the Philippines. By looking into the Nestle, the research seeks to look into these corporations as agents of globalisation and how they have affected the nutrient industry in 3rd universe states like the Philippines.
To accomplish this purpose, the research outlined the undermentioned aims:
To cognize the schemes that Multinationals like nestle employ to derive maximal net incomes.
To place if the Nestle collaborates with the female parent state province ( Switzerland ) to derive maximal net incomes in the Philippines.
To cognize the function of colonisation in guaranting that 3rd universe state provinces like the Philippines had weak economic systems.
To cognize how globalisation has affected the gustatory sensations of the local people therefore impacting the nutrient industry.
1.3 Hypothesiss:
Hypothesis 1: Globalization has been able to impact the nutrient industry by impacting their gustatory sensations of the local people.
Hypothesis 2: The Nestle multinational has led to a diminution in the local nutrient industries through their effectual schemes
Hypothesis3: Effective schemes have assisted the Nestle Multinational to be able to derive maximal net incomes in the Philippines.
Chapter 2: Literature Reappraisal
2.1 Introduction
This portion of the thesis seeks to reexamine the literature concerned with the effects of globalisation in developing state provinces. It is here that the assorted theories that talk about globalisation are discussed. Furthermore, the assorted literatures on the impacts of globalisation and multinationals are reviewed.
2.1.1 Theory
To explicate this research subject, many theories have been proposed. In any disciplinary research, it is imperative that a theoretical model that discusses the jobs impacting this research is employed. In add-on, the theoretical model will help in explicating the necessary research inquiries for planing the research survey. It refers to assorted aggregations of interconnected constructs such as a theory ( Kaplan, 1964 ). Although assorted literatures have been able to cover wide diverseness of theories, the theory of universe systems will be employed to explicate globalisation and its impact on nutrient industry in the Philippines. The theory emphasizes on the fact that the systems of the universe ought to be the basic unit of analysis. The theory refers to the international labour division and this is the footing of globalisation. Harmonizing to the theory, the universe is split into the semi fringe, the fringe and the nucleus state provinces. The nucleus state provinces center on holding high skilled labour and a production that is capital intensive. The remainder of the state provinces have low skilled labour with a production that is labour intensive.
In add-on, they specialize on the extraction of minerals. This explains how the procedure of globalisation has emerged in the universe ( Chase-Dunn, and Grimes. 1995 ). The state states with capital and high engineering have been able to travel into state provinces that have labour and no capital. The system alterations quickly because of globalisation and single states can be able to lose their position as nucleus state province really fast because of alterations. The theory was formulated by Immanuel Wallenstein in 1978 ( Wallerstein, 1974 ). Wallenstein has been able to follow this theory to the 15 century where the feudal economic system in Europe went through a major crisis but was changed into a capitalist society. This is what globalisation has done to developing state provinces. It has been able to transform developing state provinces like the Philippines into a capitalist one ( Jensen, 2008 ). This is by opening up the markets and leting the constitution of foreign investings in the state.
The nutrient concern has managed to be even before civilisation took topographic point. The promotion of this trade in the 16th and 17th centuries was largely premised on the find of trade goods that were geographically specific and tropical works merchandises ( Brenner, 1982 ). It is agribusiness that made the developed state states become powerful as they sold their agricultural green goods to international markets. Wallenstein purports that that the state states in Europe were able to use the advantages they had like engineering to rule other state provinces ‘ economic systems. They were able to distribute the capitalist economic system and industrialisation ensuing in unequal development ( Jensen, 2008 ). Agricultural globalisation was seen as a agency through which they could build their economic system.
In capitalist globalisation, occupations and capital move from one state province to another. This is chiefly from the states that are rich ( the nucleus ) to the developing state provinces ( fringe ). This made them created their ain industries that could treat nutrient premised on what could be gotten from the local natural stuffs. Capitalist corporations like the Nestle in Philippines have increased development by paying less money to their staff in developing state provinces ( Wallerstein, 1974 ). Globalization is referred to as capitalist economy but on an international degree. In an economic system that is globalized, the economic activities of the state province exist. This is because of an exchange in impressions, services, labour forces and proficient progresss. This has made people do concern globally, travel and communicate with each other.
The theory can be perceived in the same manner as Karl Marx saw category. This means that ownership is compared to non ownership as the agency of production. The state states classified as the nucleus possess and command the chief agencies of production. That is why the nucleus states are able to rule the developing state provinces. The fringe states do non have much of the agencies of production in the universe. This is irrespective of the fact that they carry out higher degree of the production works. Like in any other category system in many state provinces, there exist category places in the universe that lead to uneven wealth distribution. The nucleus state provinces get the greatest portion of the excess production ( Wallerstein, 1974 ). Despite having the natural stuffs and labour, the fringe states receive the least of their production. In add-on, the nucleus state provinces are able to purchase natural stuffs and other goods from the state states at a cheaper monetary value. The nucleus state provinces demand the fringe states to purchase the merchandises at a higher monetary value.
The Nestle was able to derive entree in the Philippines because the Multinational comes from the state province in the nucleus. The Nestle employs the inexpensive labour from the developing state provinces and their natural stuffs. Wallenstein argues that in the 20th century, the universe systems theory had reached its bounds geographically ( Wallerstein, 1974 ). This is because province systems that were capitalist in nature and capitalist markets were extended to all other parts. The United States rose to go a hegemonic power. This means that it had political every bit good as economic powers. These freshly independent state provinces were able to face the control of the nucleus in the full century ( Borines, 2001 ). Some of the provinces that had gained independency decided to face the nucleus ‘s laterality by bettering the position of their economic system. In the nineteenth century, liberalism took over as the political orientation. It was designed with the hope that there will be equal portion markets and single rights. It besides desired to progress the economic position of the state states. This is what Wallenstein calls, the passage period. However, the period has been brought about divisions and unequal wealth distribution in the universe. Technology is the factor that makes the nucleus state states to stay in their dominant place.
Wallenstein ‘s theory has attracted a batch of unfavorable judgment. The theory has focused a batch on the economic system alternatively of the civilization of the state provinces. These critics can be categorized in four ways. First of wholly, the Orthodox Marxist who argue that the universe systems theory has moved off from the rules of Marxism. This has been depicted in the manner the construct of societal category has non been given much gravitation ( Wallestein, 2004 ). Second, the rationalists have criticized the theory for being excessively prone to generalisation. The universe systems theory is barren of quantitative informations and has failed to set forth propositions that can be contradicted by an observation. Third, the province autonomists have criticized the theory by stating that there lacks a boundary between concerns and the province. All the critics purport that the province should be regarded as the focal point of analysis. Other critics like Brenner have purported that prioritising the universe market means that the local battles amongst the categories and constructions ought to be neglected ( Brenner, 1982 ).
2.1.2 Positive of globalisation in the Philippines ‘ nutrient industry
Globalization refers to the addition in mutuality amongst assorted concern houses in the economic systems of assorted state provinces in the universe. The alteration agent of this state province is usually concerns that are owned by assorted transnational organisations. A Multinational Corporation is an endeavor that involves itself in the direction of production in more than one state province ( Tolentino, 2000 ). Furthermore, Multinationals deliver assorted services in many other states. Many bookmans have researched on the impacts of globalisation in the nutrient industries of many developing state provinces.
For illustration, harmonizing to Dasguta ( 2004 ) globalisation has resulted to a rise in merchandises that are consumed in different state provinces. Consequently, this consequences in the rise of many nutrient industries that compete against each other to seek and run into the demands of their clients. Finally, globalisation has resulted in increased competition amongst the nutrient industries. This in bend has culminated to a greater degree of independency to planetary companies for both planetary coaction and economic activities. Harley ( 2006 ) argues that most companies have begun to run globally on an economic graduated table. Harmonizing to his surveies, the gross of the company in their state province was regarded as the highest in their state of beginning in the yesteryear. However, in this present clip, the antonym of the above statement is deemed to be true.
Scholars have written on earliest signifier of globalisation. Berberoglu, ( 2005 ) purports that since the 1400 ; globalisation took topographic point in the signifier of capitalist economy. During this period, the Europeans began organizing settlements that could provide them with natural stuffs and inexpensive labour for their merchandises. The economic systems of most developing state provinces were developed in such a manner that they supplied for the demands of the built-in state provinces that existed in the planetary system that was capitalist in nature ( Berberoglu, 2005 ).
The lifting tendency of markets, fundss, services and goods that are interconnected have resulted in the tendency of globalisation. This has created development in engineering every bit afar as nutrient industry is concerned. In add-on, the rise in the stature of transnational companies in developing state provinces has influenced the economical, cultural and political facets of many state provinces. In the economic dimension, globalisation revolves around the accretion of capitalist economy as the current tendency. This is clearly depicted by the widespread labour division that exists in the universe, raising Numberss of industries within the MNCs and the motion of capital globally from one state province to another ( Suarez-Villa, 2012 ). Through colonisation, these state provinces were able to acquire states at the fringe like the Philippines to provide all that they need for their economic system to spread out. This affected the nutrient industry as it made the Philippines become dependent on the developed state provinces. The Filipinos grow their ain nutrient merely to be processed in the developed state provinces because of deficiency of better engineering to make the occupation. In bend, the Filipino husbandmans get small from their green goods while the multinationals get a batch of money. American exploited the Filipinos by coercing them to work for them and purchasing their green goods. This provided inexpensive labour and market for the American merchandises. The Americans prioritized on roll uping the wealth, industries and the capital of the Filipinos ( Borines, 2001 ).
Harley ( 2006 ) argues that for these Multinationals to stay competitory globally, they largely aim at cut downing their costs and monetary values. This works at the same time with their desire to bring forth goods of a high criterion. Companies look to 3rd universe state provinces as their centres of operation. They see their houses as a manner to profit from the 3rd universe state provinces as they would derive a on the job force that is skilled/unskilled with really low cost. This has been achieved by puting up their operations in state provinces like Philippines, Malaysia and India. Borine ( 2001 ) argues that colonisation left the economic system of Philippines in a really weak province. This meant that despite the fact that they were granted sovereignty by the Americans ; the Philippines were still non sovereign in their economic system. Borines ( 2001 ) purports that most of these developing state provinces had to trust on the American markets for endurance. The economic system of the Philippines is extremely dependent on agribusiness and three quarters of the hapless Filipinos depend on agribusiness for their support ( Borines, 2001 ). As more and more houses become planetary, the Numberss of rivals addition. In add-on, the strength of the competition increases excessively. In these state provinces, the MNCs have entree to untapped markets that will increase their volume of merchandises ( Billet, 1991 ). In add-on, these houses have entree to a fabrication low cost base for their exports to the environing markets. These multinationals like Cuddles have opened up the Filipino nutrient industry to the international market. This has created new chances for the Filipino husbandmans to be able to merchandise on an international graduated table.
With an increasing population of over 80 million, approximately 60 % of the Philippine population ‘s lives live below the poorness line. The poorness degree in the state province has brought a batch of corruptness or development by assorted Multinationals. In order to cut down the costs, these companies employ development methods to be able to ache the work force or damage the environment. Carbaugh ( 2010 ) purports that transnational corporations search for topographic points where they can be able to entree labour that is cheap in order to construct their mills. For illustration, United Fruit is a transnational banana bring forthing corporation in Honduras. The part was chosen because of chase of inexpensive natural stuffs and labour ( Carbaugh, 2010 ). Normally, these companies are cognizant of the state of affairss in a state that will do them be able to pull maximal additions. These Multinationals are non required to follow any guidelines that may be present in their states of beginning ( Rachman, 2008 ).This means that some of them operate in developing state provinces without taking attentiveness to the local ordinances refering concerns. In add-on, these companies engage in activities that increase their cost of operation. A weak legal and regulative system will ensue in development of labour and resources in the developing state province.
Most developing state provinces like Philippines hope that through Multinationals, globalisation would transform their hapless economic system into an active participant in the planetary economic system. As a consequence, globalisation has been able to transform this state province by increasing the employment chances ( Rachman, 2008 ). This is because more foreign companies have come into the Philippines to help in its ailing economic system. This affects the nutrient industry as it avails the necessary labour required. Globalization has resulted to other effects. First of all, globalisation makes state provinces that have different value systems are able to seek to win each other in the same degree ( Dasgupta, 2004 ). This means that different state provinces set up constructions and policies that will be able to pull more foreign investors in their state.
Globalization has resulted in greater mobility of capital and workers in the international market. Consequently, this has led to a planetary market topographic point where there has been an addition in the chance for employees, clients and directors of the company. For case, the coming of Nestle Company to the Philippines brought in capital for raising mills and offices ( Local Philippine Context, 2010 ). Foreign workers were granted an chance to work in Philippines. This gives them a greater exposure internationally. However, the entry of Nestle in the Philippines has been able to make an intense degree of competition with the local market. The local market is left to vie with the planetary giant for markets portions and grosss. The most basic demand of persons is nutrient. This means that most multinationals that deal with nutrient like the Nestle have really great power. Bing the universe ‘s leader in the fabrication of babe nutrient, the Nestle Company has managed to open up the nutrient industry in doing babe nutrients ( Borines, 2001 ). This is despite the assorted patterns like corruptness and monopoly that are deemed to be misguided. The Nestle has introduced new techniques of treating like condensation and roller drying. Consequently, this has led to a excess of inexpensive milk in the Philippines. The Nestle Company commenced exporting its milk to developing state provinces in the financial twelvemonth 1873.
2.1.3 Negative facets of globalisation
Like in other developing states, globalisation has changed the civilization of most Filipinos therefore bring fleshiness to the kids and grownups. In the financial twelvemonth 2008, the National Statistics Coordination Board revealed that 26.6 % of Filipino grownups were corpulent. This has increased by 10 % from 1993 ( ABS-CBN, 2011 ). 6.6 % of kids of age 5 to 10 old ages have been found to be overweight from a study carried out in 2003. This is because of the debut of fast and processed nutrients. Foods that are processed have been tampered with by adding things like additives, preservatives, heat demands of chemicals that would destruct healthy vitamins, enzymes or fatty acids that are natural in nature. These processed nutrients are made from chemicals and assorted preservatives that may be harmful to the wellness of human existences. Some of Nestle nutrients are processed like frozen nutrients, yogurt, cereals and other drinks.
Harmonizing to Rachman ( 2008 ), transnational make a batch of money in developing state provinces through development. In the findings of the research, it was discovered that Nestle gets a batch of net incomes from the H2O that they get from the rural countries in Philippines. However, they leave the local Filipinos to cover with the amendss. Consequently, this leads to pollution and the deficiency of soundlessness in the rural Philippines. In add-on, the research found out that the Nestle Company has interfered in assorted community elections ( Jensen, 2008 ). The company does this to entree the H2O supplies of the local community. This affects the local nutrient industries as their H2O supplies are cut short at the disbursal of the Nestle. Furthermore, globalisation has resulted in societal inequalities amongst state provinces. This has threatened the employment degrees every bit good as the criterions of life in these developing states. Third, globalisation makes the lives of people working in other universe parts become intertwined. This is because of the technological development that globalisation has brought in the communicating field ( Billet, 1991 ). A important event in one portion of the universe may hold a great impact in another state province.
There has been a thin research on how globalization affects Asiatic state provinces peculiarly the Philippines. First of all, most literature on globalisation covers merely developing state provinces in Africa and Latin America. However, there is literature on Asiatic state provinces like in the Philippines. This creates a spread in the literature on this subject and specifically in the Philippines.
Chapter 3: Methodology
3.1 Introduction
In the old chapters, the impact of globalisation on the nutrient industry has been discussed. This chapter is split into five parts. The research design and topics, the plan description all offer really general information on the subject of the research. The other three subdivisions instruments, stuffs and the research processs have been to the full described. In add-on, the subdivision will explicate the attacks of garnering the information relevant to our capable. We will explicate the research survey methods, and which method is more appropriate and why, the resources are the indispensable key to unlock the information, and the types of informations excessively. The instruments employed in roll uping informations comprise of assorted methods applied to keep the instrument ‘s dependableness and cogency.
There are different ways of sorting the informations during any research survey. By analyzing assorted features of different surveies, the research worker will be assisted to find and analyse the differences and similarities. Following the categorization:
Aim of the research -the justification why the research was conducted
Progression of the research- the procedure through which the information were gathered and analyzed.
Rationale of the research-whether the research survey rationale moves from specific to the general and frailty versa.
Consequence of the research – the outlook of the research is the elucidation to a specific issue or a general furnished to knowledge.
The research worker attempted to explicate the construct of globalisation in the nutrient industry ; we have specified the Nestle Philippines in order to rub the accurate consequences. Therefore, Nestle Philippines has been specified so that we can generalise the survey ( Strauss, 1987 ).
3.1 Research Design
As stated, this research seeks to understand globalisation and its impact in the nutrient industry in the Philippines. This comprises of a elaborate probe of the nutrient industry in Philippines and how the Nestle Company has changed the industry in Philippines. This research will use the exploratory survey. Creswell argues that the method can be employed because there is non plenty survey that has been carried out on the research subject ( 2000 ). In this manner, the research worker will fix the lineation so that the writer can roll up specific information that will non divert from the topic. Exploratory research was employed to deduce accurate consequences and this attack assists us on roll uping the needed information ( Malhotra & A ; Birks, 2007 ).
The research survey was able to use assorted method of research of qualitative and quantitative attack ( Malhotra & A ; Birks, 2007 ). The qualitative and quantitative methods have been applied in roll uping informations from the Nestle employees and the outside populace. The survey was carried out in two phases: First, the information was collected from the Nestle employees and the outside populace by utilizing non-codified unfastened structured inquiries that were designed to obtain both qualitative information. Data was collected from the respondents to happen out the company ‘s operation in Philippines and first manus information refering its impacts on the nutrient industry in Philippines. This questionnaire was besides of import, as it was able to acquire the thoughts on what the Multinational Company has employed to pull and retain its clients, and how these attempts have affected the local nutrient industry. In add-on, this helped in replying the undermentioned research inquiries:
How has globalisation affected the nutrient industry in the Philippines?
Has the Nestle acted as an agent of globalisation in the Philippines?
In what ways have the transnational corporations such as Nestle, affected the nutrient industry in the Philippines?
What strategies has the Nestle employed to guarantee that they dominate the nutrient industry in the Philippines?
How has this attempts employed by Nestle affected the local nutrient industry in the Philippines?
Second, the research worker used codified close structured inquiries in the questionnaire. Here, seven closed structured inquiries have been employed to cognize the specific information from the respondents sing their responses and perceptual experiences towards the Nestle transnational corporation and its consequence on the local nutrient industry in Philippines. The informations collected by using unfastened inquiries in the questionnaires from the respondents had employed thematic analysis. This method assisted to draw out the thoughts, constructs and subjects in relation with the assorted schemes by using thematic analysis ( Kaplan, 1964 ). Premised on these subjects, an analysis was done supported by some of the replies of the respondents. This information assisted in cognizing the consciousness that the Filipinos have refering the Nestle merchandises and its impact on local nutrient merchandises.
In the first topographic point, by using the unfastened questionnaire, the research worker attempted to interview the assorted departmental directors in the Nestle Company. He could merely run into with 7 as other directors could non be able to be found. In add-on, other directors have less involvement to be questioned. Using electronic mails, the questionnaires were sent to the directors. These questionnaires were non coded and the information was qualitatively assessed to draw ; out the thoughts and subjects via thematic analysis. In the 2nd phase, a semi-structured questionnaire was employed to roll up informations from consumers. During this phase, the research worker employed Survey Monkey package through which he sent the questionnaires to all of his contacts. In add-on, he was able to do entreaties to the consumers to distribute the questionnaires to other people in the Philippines. The research worker either made personal contacts or telephoned the people he had sent mail to. Furthermore, he employed paper questionnaires to any Filipino pupil he made at the university.
After aggregation, the questionnaires were dual checked to look into whether there were inquiries that were non filled and tried to acquire back to the respondents to complete up the inquiries. After corroborating the inquiries, the research worker coded and entered the informations placing the dependant variable ( locally produced groceries, nutrient industry ) and independent variables ( globalisation ) and employed the SPSS and study Monkey package to analyse informations. The tool was employed for the quantitative elements of the analysis. In this procedure, ab initio, he put all the informations in the package and made a dataset which were being analyzed utilizing different statistical method viz., step of cardinal inclination ( average, and percentile ), steps of scattering ( standard divergence ), individual ‘s correlativity coefficient to see if there is any relationship between different variables ( such as trade name trust and purchasing behaviour ). Hypothesiss were tested utilizing ‘ T ‘ trial to see if the hypotheses are supported or non. Finally, statistical significance was besides tested on the findings.
Similarly, to analyse the qualitative informations collected by questioning the Nestle Philippines directors had been analyzed by thematic analysis technique where the subjects were pulled out from the transcribed informations and analyzed based on the subjects supported by the citation of the respondents.
3.3 Research population
The full Philippines population was deemed as the research population in this research survey. The population was subdivided into two groups, the Nestle employees and the outside populace. The outside populace included the local Filipinos and all other immigrants. The ground why the research worker separated the population into these two groups was in order to ease elaborate analysis in the following chapter.
3.4 Sample, Sampling and its justification
The questionnaires were to be analyzed in two phases. In the first phase of the survey, there will be trying of 10 Nestle employees through non-probability sampling process. Their clip and handiness will be considered during the procedure of acquiring consequences. This sampling process is selected for research because it provides a scope of alternate techniques to choose samples based on subjective judgement, and it provides an equal chance for each person in the population to be selected.
Second sampling technique: Over 100 consumers of the Nestle merchandises were selected through the sweet sand verbena trying method. However, merely 90 responded to the inquiries asked. This method was important as there was no database for the local Filipinos shopping in assorted shops. This forced the research worker to use his personal web to be able to acquire the respondents. In add-on, since there would be a restricted sum of participants and the trial subjects. This trying method gives the research worker the ability to hike the survey ‘s efficiency.
Chapter 4: Data presentation, Evidence, Analysis and treatment
4.1 Introduction
The old chapters examined the research methodological analysis and selected 1 that could be employed in the survey. This scrutiny resulted in a descriptive attack being used in roll uping informations from the employees of Nestle and the outside populace. Quantitative and qualitative informations will allow the research worker in placing the links between the variables and tendencies within informations. This usually comes in signifier of Numberss and units ( Landy & A ; Conte, 2009 ). To reply the research inquiry, globalisation and its impact on nutrient industry in Philippines, this chapter presented the determination of the survey.
4.2 Data analysis
This subdivision illustrates study and arithmetical results cited in the old chapter. Out of the 100 questionnaires like portion 1, the effects of globalisation on local nutrient industry, sent, merely 90 questionnaires were received. This means 10 questionnaires were non received from the respondents. Seven of the questionnaires were from the Nestle employees and the remainder, which were 83, were from the outside populace. These means the figure of questionnaires available for analysis were 90.
4.3 Overview of findings from the Consumers
By using structured questionnaires in Survey Monkey package through the online study, the survey was able to acquire 90 respondents in two hebdomads as shown in the pie chart above. The consequences demonstrated important perceptual experience of the Filipino consumers towards the Nestle Company selling schemes which has been discussed in the undermentioned parts:
4.3.1 Demographic Profile of the respondents
The respondents ‘ demographic information was obtained from portion three of the questionnaire. In the demographic analysis of the respondents ‘ features from the questionnaire, the survey shows that male dominated respondents of the survey by 77.7 %. Most of them were in the age of 18-30 ( 66.7 % ) with average age 32 and standard divergence 6.75. All of them are educated, most of who are higher educated ( 87 % ) with Bachelor or Master degree instruction. The information besides found that respondents are both pupil ( 57 % ) and working people ( 43 % ). In footings of ethnicity, the bulk of the respondents are Filipinos ( 80 % ) where 20 % are Europe-American community. However, most of these groups are Filipinos who are partly stand foring the Asiatic values. Most of the respondents ( 56 % ) are populating in the Philippines for longer clip ( 2-4+ old ages ) while 20.6 % are less than one twelvemonth. Some of the above information can be shown in the tabular arraies below.
Gender
AGE GROUP
Sum
Male
Female
15-25
26-35
36-45
46-55
Employee Respondents
4
3
2
3
1
1
7
Outside Respondents
66
17
26
29
16
12
83
Sum
70
20
28
32
17
13
90
4.2.1 T-Test Analysis
The independent t-test, besides known as the two-sample t-test evaluates the agencies between two distinguishable groups on similar uninterrupted, reliant variable. A Levene ‘s trial was carried out in the analysis of the topic under survey. The SPSS t-test procedure permits the analysis of excellence of discrepancies and the t-values for reciprocally even and uneven discrepancy, and provides the appropriate descriptive statistics.
The research was based on three hypotheses, which are described below:
Hypothesis 1: Globalization has been able to impact the civilization of the local people by impacting their gustatory sensations
Hypothesis 2: The Nestle multinational has led to a diminution in the local nutrient industries through their effectual schemes
Hypothesis3: Effective schemes have assisted the Nestle Multinational to be able to derive maximal net incomes in the Philippines.
The purpose of this subdivision is to analyse the impacts of globalisation on the nutrient industry in Philippines. This subdivision of the research survey is designed to measure the hypotheses that globalization so affects the nutrient industry in Philippines, with mention to Nestle Multinational Corporation. The SPSS plan was used to transport out a T-Test as shown below.
Hypothesis 1: Globalization has an impact on the civilization of the local people by impacting their gustatory sensations
Part two of the questionnaire aimed at analysing the impacts of globalisation on the civilization of the local people by impacting their gustatory sensations and penchants. The respondents were asked how the puting up of transnational corporations such as Nestle in Philippines has affected ingestion and production of local groceries. The 90 questionnaires were analyzed to happen out the positions of respondents on the effects globalisation on ingestion and production of nutrient merchandises. H1 scores on the questionnaires ranged from 1-10, with high tonss stand foring grade of relationship with the hypothesis. For the independent t-test, the void hypothesis is that globalisation has an impact on the civilization of the local people by impacting their gustatory sensations.
The tonss and their frequence of happening have been shown in the tabular array below.
Mark
7
6
5
4
8
3
9
1
10
2
Comparison of how civilization affects the gustatory sensation buds of the locals
13
10
6
9
17
4
15
3
5
8
These informations was put in the SPSS plan and the mean mark was established to be 5.5 while the comparing mean was 9. The information was put in the SPSS plan as shown in the tabular array below. The undermentioned informations were obtained.
Tonss
( x-m ) ^2
Comparison
( y-m ) ^2
7
2.25
13
16
6
0.25
10
1
5
0.25
6
9
4
2.25
9
0
8
6.25
17
64
3
6.25
4
25
9
12.25
15
36
1
20.25
3
36
10
20.25
5
16
2
12.25
8
1
82.5
20.4
The standard divergence for tonss was 2.87 while that of the comparing was 1.0346. This information was used to cipher the T-test of this research job. The SPSS gave the T-test solution to be -0.28. The hypothesis that globalisation has an impact on the civilization of the local people by impacting their gustatory sensations is true because T is less than 0.05.
Hypothesis 2: The Nestle has led to a diminution in the local nutrient industries through their effectual schemes
Part one of the questionnaire was aimed at set uping whether transnational corporations such as Nestle negatively or positively impact the local nutrient industry in the Philippines. The void hypothesis for this independent t-test is that Nestle has led to a diminution in the local nutrient industries through their effectual schemes. The numerical information was weighed utilizing answering of inquiries in portion 1 in the questionnaire, to ease easy digest of the information into the SPSS plan. The research worker assigned Markss to each in the numerical information class harmonizing to the grade of relationship with the hypothesis. The tabular array below shows positions of the respondents on whether the operation of Nestle in Philippines leads to a diminution in the local nutrient industry. The respondents were asked whether the puting up of Multinational Corporations like the Nestle affected the nutrient industry in Philippines. They were expected to reply yes or no.
Gender
Education degree
Male
Female
Undergraduate
Graduate student
High school
Others
Sum
Yes Opinions
54
14
54
5
6
3
68
No Opinions
16
6
13
3
4
2
22
Sum
70
20
67
8
10
5
90
As shown in the tabular array above, it was observed that most respondents agreed that the puting up of Multinational Corporations like the Nestle affected the nutrient industry in Philippines. The questionnaires besides showed that out of the 76 % males who whose sentiment was analyzed, 77 % agreed to the hypothesis and 23 % disagreed. This was besides the instance refering female respondents. The instruction degree was besides analyzed and its influence on the nutrient industry in Philippines considered.
The information in the tabular array above was entered in the information analysis plan in the undermentioned format.
The correlativity between the Education Level of the Filipinos and how it affects the nutrient industry in Philippines
Yes Opinions
( x-m ) ^2
No Opinions
( y-m ) ^2
54
1369
13
56.25
5
144
3
6.25
6
121
4
2.25
3
196
2
12.25
T=68
T=22
M=17
M=5.5
The average figure of respondents that agreed the puting up of Multinational Corporations like the Nestle affected the nutrient industry in Philippines 17. The average figure of respondents who disagreed with the hypothesis of this survey was 6. The standard divergence was established to be 1.0 for the Yes sentiment and 1.03 for the No sentiment polls. The T-test consequence was established to be -4.39. This means that the degree of instruction affects the gustatory sensation buds of the local people. Education enlightens the perceptual experiences of the local people doing them appreciate the Nestle merchandises more than the local merchandises.
Hypothesis3: Effective schemes have assisted Nestle to be able to derive maximal net incomes in the Philippines
Question five of portion two was designed to happen out whether effectual schemes have assisted Nestle to stand a competitory advantage over the local nutrient industry and derive maximal net incomes. The respondents were asked whether locally produced groceries were able to vie with merchandises produced by Nestle. 53 per centum of the respondents said no while 47 per centum of the respondents said yes. The respondent viewed the competition as healthy since it has facilitated production of high quality groceries, unlike when Nestle could hold non started runing in Philippines. The respondents positions can be shown by the pie chat below.
Chapter 5: Decision
5.5 Decision
The groundss from the research support what has been antecedently established. The nutrient and processing industry in the Philippines is the taking industry. As a consequence, multinationals like the Nestle have managed to transform the nutrient industry both negatively and positively. From the findings, the nutrient industry is worth more than two billion dollars. In the financial twelvemonth 2007, the gross value increased 3.2 % ( Berberoglu, 2005 ). Multinationals like the Nestle have changed the diet of the Filipinos. For case, they have been able to carry on educational consciousness runs to assorted parts of the Philippines. These runs have assisted in demoing people what a good diet consists of every bit good as marketing their merchandises ( Nestle Philippines, 2011 ).
This has led to a displacement in the nutrient industry as the demands of the consumers are now the major involvement in production. After analysing the information utilizing quantitative and qualitative methods, the survey has been able to lend to the fact that Multinationals have a great impact in the host state provinces. For case, from the secondary beginnings like print books, the research found out that MNC Nestle has had both good and bad effects in the Philippines. For illustration, the Nestle has resulted in legion occupation chances for 100s of Filipinos. In add-on, the nutrient industry has been impacted by the debut of better engineering like capacitor. Harmonizing to print beginnings, The Nestle relies on the location and assorted schemes that are consumer driven to rule the Filipino markets. These findings offer a great penetration for both authoritiess to revisit their policies refering Multinationals in their state provinces. How has globalisation affected nutrient industry in the Philippines?
The research found out that globalisation has resulted in greater mobility of capital and workers in the international market. Consequently, this has led to a planetary market topographic point where there has been an addition in the chance for employees, clients and directors of the company. This supports Jensen ‘s ( 2008 ) statement has affected the nutrient industry by making more skilled labour for the industry. For case, the coming of Nestle Company to the Philippines brought in capital for raising mills and offices. Like in other developing states, globalisation has changed the civilization of most Filipinos therefore bring fleshiness to the kids and grownups. For case, in the financial twelvemonth 2008, the National Statistics Coordination Board revealed that 26.6 % of Filipino grownups were corpulent. This has increased by 10 % from 1993 ( ABS-CBN, 2011 ). 6.6 % of kids of age 5 to 10 old ages have been found to be overweight from a study carried out in 2003. This is because of the debut of fast and processed nutrients. Foods that are processed have been tampered with by adding things like additives, preservatives, heat demands of chemicals that would destruct healthy vitamins, enzymes or fatty acids that are natural in nature. These processed nutrients are made from chemicals and assorted preservatives that may be harmful to the wellness of human existences. Some of Nestle nutrients are processed like frozen nutrients, yogurt, cereals and other drinks. This information is relevant as it assist informing the research on the ways through which Multinationals addition net incomes ( Rachman, 2008 ).
5.4 Restrictions of the survey
Merely like most researches, this survey besides has some restrictions. While the research worker was able to critically analyse the secondary informations to measure its utility, 1000 % truth could non be guaranteed. Furthermore, the figure of Multinationals to be studied was merely one. This restricts and makes the findings prejudice.
5.5 Future way for research
Due to clip restraint, the survey concentrated in merely one transnational corporation and one developing state province. Therefore, in future the research should be able to do analysis on more state provinces and companies for accurate records. In add-on, research ought to be carried out on the effects of globalisation in other industries. This will guarantee that the subject on the effects of globalisation is exhaustively researched on and more information received.
5.6 Recommendations
From the research findings, the policy shapers of developing state provinces like Philippines ought to beef up their industries by back uping domestic concerns. This will cut down the impact and use of multinational in their state provinces. As depicted from the research most MNCs dominate the markets because they lack support from their local authorities ( Tolentino, 2000 ). Furthermore, the authoritiess in developing states like the Philippines allow foreign investors dominate their markets. This is with the purpose of wanting to pull them to make concern in the state province. Hence, authorities functionaries ought to be steadfast with their determinations on MNCs. This will guarantee that that the Multinationals comply with the regulations of the state province. Furthermore, the authorities ought to guarantee that their husbandmans and manufacturers get a just trade for their green goods. This is because as per the findings, most of the husbandmans get a natural trade for their green goods ( Berberoglu, 2005 ). The authorities should do certain that the Multinationals coming to their state provinces treats their citizens with the extreme regard and they are paid adequately and quickly. This will minimise the development patterns that most Multinationals carry out in developing state provinces like in the Philippines.
Time Scale and program
Content
Week beginning
Activity
Results
Introduction
From 25th February to 28 February
Globalization and its impact on the nutrient industry-Nestle Philippines
The purpose and aims of the research is clearly defined along the principle of this survey
Literature reappraisal
From 2nd March to 7th March
The surveies of different writer have been taken to understand the topic
Reflected assorted point of positions to understand globalisation and its impact on nutrient.
Methodology
From 8th March to 11th March
Implemented the appropriate research methodological analysis in order to deduce accurate consequences
The attack chosen for this survey is explanatory research methodological analysis.
Data aggregation
From 12th March to 19th March
The information has been collected with the aid of old surveies done by past research workers including the instance of Nestle Philippines. For this research survey has collected secondary informations
The information aggregation was done with the aid of instance survey and old theories.
Datas analysis
FFrom 25th March to 28th March
From the full findings, the research worker has found other variables which impact the nutrient industry
The expected consequence that the research worker has been scratch from analysis is successfully done
Questionnaire
This questionnaire seeks to roll up information on the rubric “ Globalization and its Impact on the Food Industry in Philippines, ” the focal point of the survey being Nestle. All the information given in this questionnaire will be treated with extreme confidentiality ; hence, it will non be given to any 3rd party or used for any other intent other than that stated above.
Part 1: Effectss of Globalization on Local Food Industry
Has the puting up of Multinational Corporations like the Nestle affected the nutrient industry in Philippines? ( tick Yes or No in the appropriate box ).
