Thailand: Investment Analysis

Political: this inturns the legislation and government rules of the country that may influence and pose as a threat to the business,

Political –how changes in government policy might affect the business, like a decision to subscribe building new houses in an area could be good for a local brick works.

When Thailand joined in AEC there are advantage and disadvantage. When the AEC opened and joined together that make an opportunity to get a good job after graduated because the immigration and customs are not difficult to entrance more than past including logistics. Thai people can work a job which they choose in the other country comfortably Aat Pisanwanich said “Thailand had yet to arrange for the new challenges that will be presented by the AEC” such as a doctor which the job in AEC that invited and wanted as the doctor of Thailand are superior and to be experienced in all skills. In contrast, the doctor More than 50 per cent of medical practitioners did anticipate some benefits from the AEC. However, they preferred to stay in Thailand rather than other Asean countries because of the Kingdom’s high model of medical services. They also don’t want to have to adjust to new cultures. Many want to go to developed countries in North America or Europe when they upgrade and grow their career paths and the weakness when AEC opened is the foreigners are snatching the job that make Thai people to be an unemployable person. Thailand suggestion financier world-class foundation. Market and trade agreement are made easier through Thailand’s far-reaching highway system, modernize city-wide mass transit, international airports, deep sea ports, and international river ports. As the center of ASEAN, Thailand information for free and fair market. It is influential in the production of the ASEAN Free market Area and a endorser to a number of other free market. Moreover, in the industrials case the labor from the others country are received the minimum wage less than Thai people that a reason why the employer of Thailand is almost to select the labor from Laos, Myanmar, Malaysia, Philippine, Singapore, Indonesia and Vietnam for reducing the expense; the minimum wage for labor cost from the other country only 300 Baht per day for the cost of living and

The economic boom of 1977 to 1997 had a dramatic impact on Thailand’s northern villages. While the center of the country, Bangkok, was rapidly industrializing, the north fell behind. Due to a lack of income and resources, the north had to watch the

After a decade of sustained growth, the current situation in Thailand is one of unprecedented economic turmoil. The countries exports have halted, foreign investors have become hesitant with their money due to the account deficit, the stock market plummeted, and big loans made by banks have caused a large accumulation of debt. Typical causes of an economic crisis, such as: high debt, large current account deficit, deregulation of the banking industry without proper controls in place, and a semi-fixed exchange rate are all at the forefront of the nation’s current economic state.

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.

The political-legal environment is that which consists of government bodies, pressure groups and laws. It is pertinent for companies to keep abreast of and change in political environment because these changes can have dramatic effect. Change in political environment can see legislation introduced that will not make selling or providing a product feasible or somewhat difficult. There are many political factors and laws that can affect business. Pricing, competition, fair trade packaging, labelling, advertising, product safety and minimum wages can all affect business. The

The politics of our country effect businesses is many ways but the mostly effect the business in terms of risk factors. For example: Due to the rumours of the arrest of our finance minister, Pravin Gordhan our rand depreciated at a rapid rate in such a short space of time. The rand depreciated to its weakest level against the dollar in two months. This affected businesses like TFG because due to our political instability there was a drop in overseas investor

The Thai government is in need of help restructuring their political system and rebuilding their economy. With help from the United Nations and other governments, the Thai government can

The Political risk can be contributed to government interference in the business affairs of the foreign persons doing business in a particular country. Political risk can also surface as firm-specific risk. This form of risk targets a specific business or class. There can also be country-specific risk where the entire country or region is affected. Given that political risk will exist, if I were a political consultant for Mercedes-Benz, I would suggest relocating any business venture that was located in areas that are susceptible of being stagnated by political strife.

Every business’s goal is to maximise profit, generate more revenue and increase customer satisfaction. Although to achieve these goals could be changing, barriers from the economic conditions, government and competition has increased the difficulties. Governments and businesses are interdependent, the interdependence will grow further by globalisation of the economy when it comes to international business. Mamman (2004) states: “One of the manifestations of globalisation is the blurring of political and economic boundaries and the diminishing traditional role of national governments.” The role of government has always been an important factor in business, they create rules and frameworks that let businesses compete against each other. Business is affected by the government policy, the rules and frameworks can force them to change the way how they operate. The policies of the government can have implications. For example the requirements of licensing, other permissions, regulations, taxation and formalities. All these restrictions have a direct impact on doing business.

3. Political risk - This indicates the possibility of risk that the ruling government or political unrest could affect or interfere with export and import regulations. The results could come in many different forms such as collapse in share market and also loss or cancellation of export license, seizure of property etc. This is a possibility where a country may experience political instability. We must monitor the effects of political changes and developments that it has on businesses in the country.

However, uncertainty in political situation according to military coup impact on Thailand economy to be sluggish and slow growth in the last 3 years and effect on the increasing in household debt of Thais which lead to less consumption expenditure (The World Bank, 2016; MarketLine, 2015; Sethapramote, 2014; Al-Swidi and Arfan, 2014). In accordance with the free movement labour market among ASEAN countries, Thais realised that English proficiency is a core competency for job opportunities in AEC and people with moderate income tend to consider English tutorial school as a shortcut in improving their English skills (Akaraphanth, 2015; Prachachat, 2013; Fredrickson, 2011). Therefore, the PESTEL analysis shows that the change in the macro environment positive impact to the industry and the business.

It includes Government activities, Government acting, open policies, and act which influence the operations of a marketing in Maldives. These powers may effect an association on a nearby, area, or public level. So marketer and business management give careful attention to the political powers to judge how government activities which will influence their

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's