Industrialization involves transforming raw materials into finished goods using machines. It is important for economic development as it provides employment, can adjust to consumer demands, and earns foreign currency from exports. The industrial sector has five main components: mining, manufacturing, construction, energy, and water. It faces challenges like skills gaps and environmental issues. Various government agencies promote trade and industry in the Philippines, including the Department of Trade and Industry, Board of Investments, and Philippine Economic Zone Authority. Agriculture and industry are vital as they provide livelihoods, food and raw materials, foreign trade earnings, technological development, and resource transfers.

1. Industrialization and Economic
Development

2. What is Industrialization?
• It is the
transformation of
raw materials into
finished products
through the use of
machines

3. Role of Industry in the Economy
• It has the ability to produce
different products
• It has the capacity to give
employment
• It has the capacity to
adjust to the changing
tastes of the consumers
• It helps the economy earn
foreign currency which we
use to finance our imports

4. Components of the Industrial Sector
1. The Mining Sector
“Mineral products produce
food, shelter and income.
The price and availability
of these mineral
commodities have a
tremendous influence on
the nation’s productivity
and on our standard of
living”.

5. Components of the Industrial Sector
2. Manufacturing Sector
-is defined as the mechanical
or chemical transformation of
Inorganic substances in to new
products, either by power
driven machines or by hand
in factories or in the workers’
home.

6. Components of the Industrial Sector
3. Construction
-Adequate and effective
infrastructure such as farm
market and feeder roads,
feeder ports, irrigation and
rural water supply

7. Components of the Industrial Sector
4. Energy Sector
Its objective is to ensure
affordable, competitive and
reasonably-priced energy
supply through socially and
environmentally compatible
energy infrastructure

8. Components of the Industrial Sector
5. Water
Providing a clean, potable water
supply to every Filipino is the
responsibility of the ff agencies:
Local
Water Utilities Administration
(LWUA), Dept. of Interior and Local
Government (DILG), Metropolitan
Waterworks and Sewerage
System, Dept of Public Works and
Highways, National Water
Resources Board

9. Challenges Facing the Industrial
Sector
Skills Gaps – There is
a shortage of workers
who have skills and
experience that meet
the job requirements.

10. Challenges Facing the Industrial
Sector
• Environmental Issues –
The environment is
sacrificed in the process
of industrialization and
modernization.

11. Best managed companies in the
Philippines
1. Ayala Corporation
2. Philippines Long Distance Telephone Companu
3. Ayala Land
4. International Container Terminal Services, Inc.
5. Bank of the Philippines Islands
6. Globe Telecom
7. Aboitiz Power
8. Megaworld
9. Manila Power
10.SM Investments

12. Nationalization of Retail Trade
Republic Act No. 1180 or the
Retail Trade Nationalization
Act
-this law prohibited aliens
from engaging directly or
indirectly in retail trade

13. Liberalization of Retail Trade
Republic Act No. 8762 known as the Retail
Trade Liberalization Act
-To encourage Filipinos and foreigners to
invest in the retail industry, and to
promote consumer welfare with lower
prices and globally competitive goods
through the liberalization of trade

14. Liberalization of Retail Trade
Republic Act No. 8762 known as the Retail Trade
Liberalization Act
-Reserved to Filipinos- businesses with capital less than
$2,500,000
-For enterprises with capital of $2,500,000 but less than
$7,500,000 foreigners will be wallowed up to 100%
ownership provides that the investments shall not be less
than $830,000
-For businesses engaged in luxury products with a capital of
$250,000 foreigners will be allowed 100% ownership

15. Agencies that Promote the Trade and
Industry Sector
• Department of Trade and
Industry
- Tasked to create a
business-friendly
environment and strengthen
linkages between
and among the sectors of
trade and industry.

16. Agencies that Promote the Trade and
Industry Sector
• Board of Investments
- Engages in promotional
activities supporting its
motivation to make the
country the e-commerce
services hub of Asia and
making it attractive to
investors.

17. Agencies that Promote the Trade and
Industry Sector
• Philippine Economic Zone
Authority
- It was established to
encourage investors to
invest in the economic
zones and manage zones
according to international
standards

18. Agencies that Promote the Trade and
Industry Sector
• Securities and Exchange Commission
-It is tasked to supervise the selling and
buying of corporate stocks and
securities that are issued in the country.
- It requires all companies to submit
annual reports on their performance
- It also gives information on the selling of
bonds and securities.

19. Agencies that Promote the Trade and
Industry Sector
• Bureau of Micro, Small,
and Medium Enterprise
Development.
– This agency helps the micro,
small and medium
enterprises in the
development of their
technology, they also give
financial assistance and
training.

20. Agencies that Promote the Trade and
Industry Sector
• Cottage Industry
Technology Center (CITC)
– They give seminars to those
who wants to enter the
industry or have a business
like; making Christmas
decors, jewelry, shoes and
the likes.

21. Role of Agriculture and Industry
• Source of livelihood
– Provide employment in
farming, livestock, mining,
manufacturing and food
processing.
– A country with a poor system of
agriculture cannot support a big
and growing population which
is dependent on agriculture and
industry.

22. Role of Agriculture and Industry
• Source of food supply and
raw materials for economy
– The agricultural sector is the
source of food, it also
provides a rich supply of
industrial raw materials.
– For a developing country to
take off, it requires a
continuing growth in the
supply of materials from
agriculture.

23. Role of Agriculture and Industry
• Source of earnings in
foreign trade
– Many countries depend
on both agricultural and
industry for their exports.
– For the developing
countries the bases for
international trade is the
agriculture and industry.

24. Role of Agriculture and Industry
• Development of
Technology
– From the different means
of producing the goods, a
technological change
which will yield better
results might be
discovered.

25. Role of Agriculture and Industry
• As a source of resource transfer.
– As the economy of a country
develops, the sectors of
agriculture and industry play a
vital role by contributing
additional resources.