What are the effects of too much appreciation of the Philippine peso to the export AND domestic industry?

Answer 1

Appreciation results in Phillipino goods becoming more expensive to the rest of the world. At a higher price the quantity demanded will decrease. This will result in the export industry declining. Due to large capital investment previously made to handle the large export demand, excess capacity will be available to support domestic demand. End result is that we would expect domestic prices to drop and industry to fall into recession.