[Answer/discuss the question below. Or check Mercantile Law Instructions; Mercantile Law Essay Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10; Mercantile Multiple Choice Questions: 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15; See also 2013 Bar Exam: Information, Discussions, Tips, Questions and Results]
A foreign delegation of businessmen and investment bankers called on yourlaw firm to discuss the possibilities of investing in various projects in the Philippines, and wanted your thoughts on certain issues regarding foreign investments in the Philippines.
II.(1) The delegation has been told about the Foreign Investments Act of 1991, as amended (FIA ’91), and they asked what exactly is the law’s essential thrust regarding foreign investments in Philippine business and industries.
You replied that FIA ’91 essentially reflects _______. (1%)
(A) the “Filipino First Policy”
(B) the “Foreign Investments Positive Lists” concept
(C) the “Foreign Investments Negative Lists” concept
(D) the “Control Test” concept
(E) All of the above.
II.(2) The delegation asked: aside from Filipino ctt1zens, what entities would fall under the definition of “Philippine National” under FIA ’91?
You replied that the definition of “Philippine national” under FIA ’91 covers _______. (1%)
(A) domestic partnerships wholly composed of Filipino citizens
(B) domestic corporations 60% of whose capital stock, outstanding and entitled to vote, are owned and held by Filipino citizens
(C) foreign corporations considered as doing business in the Philippines under the Corporation Code, 100% of whose capital stock, outstanding and entitled to vote, are wholly-owned by Filipino citizens
(D) All of the above, because the law considers the juridical personality, whether domestic or foreign, as a mere medium; the test of nationality is on the individuals who control the medium
(E) None of the above, because the term Philippine national can onlycover individuals and not juridical entities.
II.(3) The delegation heard that foreigners can invest up to 100% of the equity in “export oriented enterprises” and you were asked exactly what the term covers. You replied that an “export oriented enterprise” under FIA ’91 is an enterprise that _______. (1%)
(A) only engages in the export of goods and services, and does not sell goods or services to the domestic market
(B) exports consistently at least 40% of its goods or services, and sells at least
60% of the rest to the domestic market
(C) exports consistently at least 60% of the goods or services produced, and sells at least 40% of the rest to the domestic market
(D) exports consistently at least 60% of its goods or services produced, and can sell goods or services to the domestic market
(E) None of the above.