Comparative Advantages And Disadvantages Of Thailand

Thailand attracted transnational companies (TNC) based on its rich natural resources and role as a new market for TNC to expand their business operations. This benefit the local community since TNC will utilise high technology capital goods like machinery to promote the quality and quantity of production. Apart from that, TNC manage business operations well by executing efficient management policies to ensure reasonable profit margins. So, local Thai producers may learn and adopt the technology advancement and efficient management policies to improve the efficiency and productivity of their

Thailand's economy is driven by agriculture where it is still the world's leading producer of rice. Rice forms the bulk of its produce but other crops such as maize, mangoes, cassava, sugar cane, tobacco and pineapple among others are also grown. Apart from agriculture being the backbone of Thailand's economy, other economic activities are also explored which include mining. The country is endowed with tin, gold, iron, coal, lead and precious stones among others. Majority of Thailand's labour force are employed in the agricultural sector which is approximated to between 40% -50% of the population, and contributes to 12% of the country's GDP.

As seen in the graph below you will notice that within the last few years Thailand has experienced a surplus much larger than any before. Their exports have increased rapidly in the more recent years putting their numbers at a record high. This is due to an substantial increase in fuel exports. This data just proves that the second-largest economy in Southeast Asia is gaining traction. As long as they keep the external sector’s performance high then they should continue to see a rise in overall trade surplus.

Comparative advantage in economics is when a country can produce a good at a lower opportunity cost relative to other producers. It is because of this theory that output will increase because a producers within a country specializes Countries will gain the ability to maximize their efficiency and their labor force which facilitates mass-production of products, resulting in higher profits and international trade. This is because the economies of scale reduces overall cost, by producing more units. If the two countries moved towards protectionism and attempted to become self-sufficient then the production of goods would then

Cuts in protection have increased imports but the increased efficiency has led to a comparable rise in exports. The value of exports plus imports of goods and services has risen from 32% of GDP in 1975 to 48% of GDP in 2000 (ABS), reflecting

The economy is fairly broad-broad based and dedicated mainly to supplying the needs of the large and rapidly increasing population. However, proximity to the United States also provides a large market for the export of manufactured

Thailand’s most important exports are tourism and manufactured products. Manufactured products such as: clothing, electronic parts and components, furniture, and jewelry account for 81% of the nation’s export volume. With seven million people going to Thailand each year, tourism accounts for 13% of the country’s total export revenue.

Economic Considerations: Thailand is great developing country because of the smart economic policies but political environment is not stable so there is effect for investors to pay attention much to invest.

Foreign demand for a primary product may also limit economic growth as demand for a particular commodity will cause an increase in demand for a country’s currency, thus resulting in the appreciation of the currency. This would reduce the competitiveness of the country’s manufactured exports, thus leading to a decrease in the financial resources gained from exports which could have enabled the country to raise the level of economic welfare to encourage development.

When comparing Thailand and the United States of America, there are many differences. For example, the way each country is located on the globe. Thailand is located below and closer to the equator than the U.S., where it is above the equator and a little farther from it. On the other hand, both countries have a lot of beautiful places and are surrounded by body of oceans. Lots of people like to visit these two countries; however, most people in Thailand want to move to the U.S. for jobs and better lives. Most people in the U.S. like to visit Thailand for good food and warm weather. Although, not all differences are bad, there are some major differences that make living in one country better than the other. Those include lifestyle, education,

Thailand’s most important exports were manufactured goods. It accounted for 81% of exports. These included clothing, electronic parts and components, furniture and jewelry.

This book is establishes pattern in specialization which help to increases in growth through trade. It shows how economys can benefit from two different models discussed in the book.

Absolute advantage is when a country can make a product more efficiently than any other country. Generally, this means a particular country already has the resources available for immediate or somewhat immediate availability and it does not cost a lot of money, time or resources to make it available for selling.

Some of the countries with surplus commodities may dumb them on international markets at a low price. Under such conditions, some of the efficient industries can might find difficulties in competing for long period. Furthermore, countries whose economies are mostly rural will face unfavourable terms of trade. For example, ration of export prices to import prices. Which means that their export income is more smaller than their import payments the make for high value added imports, as it leads to subsequently large foreign debt levels.

This study was conducted to (a) determine which market is the most dynamic for Thai exports, (b) measure the intensity of trade between Thailand and its regional trading partners and (c) test whether the modified Revealed Comparative Advantage (RCA) index, which was developed based on the gravity trade model, is applicable for measuring Thailand’s competitiveness resulting from its border trade policy. The RCA index is typically applied based on three conceptual points. First, the trade balance index (TBI) can be used to indicate whether GMS countries are net exporters or importers. Second, the trade balance is typically decomposed by product and country (i.e., bilateral trade balance). Relevance refers to the degree of concentration of trade imbalances