...Why is international trade important to Thailand and how do global events impact on global trade? International trade has played an important role to the economy in globalization. Nowsaday, many countries are interested in international business in order to get competitive advantage and can be survive in highly competitive world. They want to enlarge their market to other countries and can get lots of benefits such as seeking the lowest cost, avoiding transportation cost and trade teriffs. Why international trade is important to Thailand? There are 2 mains factors. First, different resources of production.The specific physical geography of Thailand is one of restrictions to produce some goods while natural features facilitate Thailand to has more capability to produce argricultural products and food such as rice, rubber, fruit, vegetables, seafood etc. In contrast, other countries have another type of resources and they can produce some goods at lower cost, for examples, The Middle East countries have petrolium energy and mining industry that Thailand has to import from them. Second, different knowledge skills and technologies. For example, Japan has great potential in producing electronic and automotive products and Switzerland is very famous for mechanical watch industry ,so Thailand has no choice to import electronic product and watch from those countries because their knowledge and new technology is at expertise level and they also produce at...
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...Chapter 2 International Flow of Funds Lecture Outline Balance of Payments Current Account Capital and Financial Accounts International Trade Flows Distribution of U.S. Exports and Imports U.S. Balance of Trade Trend International Trade Issues Events That Increase International Trade Trade Friction Factors Affecting International Trade Flows Impact of Inflation Impact of National Income Impact of Government Policies Impact of Exchange Rates Interaction of Factors Correcting a Balance of Trade Deficit Limitations of a Weak Home Currency Solution International Capital Flows Distribution of DFI by U.S. Firms Distribution of DFI in the U.S. Factors Affecting Direct Foreign Investment Factors Affecting International Portfolio Investment Agencies that Facilitate International Flows How Trade Affects an MNC’s Value Chapter Theme This chapter provides an overview of the international environment surrounding MNCs. The chapter is macro-oriented in that it discusses international payments on a country-by-country basis. This macro discussion is useful information for an MNC since the MNC can be affected by changes in a country’s current account and capital account positions. Topics to Stimulate Class Discussion 1. Is a current account deficit something to worry about? 2. If a government...
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...locations. Which factors should/would you consider and why? At which top-3 of countries would you arrive? Use the information in the exhibits (and possibly information that you find yourself) to motivate your answer. Investors will tend to take into consideration some important factors before deciding to invest in a foreign country. These factors may vary between the function and efficiency of local market, trade policy and privatization policy, the rules and regulations pertaining to the entry and operations of foreign investors (1) Considering the fact that firms which engage in FDI face different difficulties like additional costs for operating at distance or costs of uncertainty, there can be some support for John Dunning’s (1977, 1981) eclectic paradigm which states 3 that the investment will take place if the firm has three advantages: Ownership advantages, location advantages and internalization advantages. Possessing all three of them will allow a company to perform better that the local competitors. Natuzzi should relocate production because it wants to reduce costs and the best way to do that is to invest in a lower labor cost country. Thailand can be considered one of the most attractive locations because is like a gateway to Asia- home to nowadays largest growing economic market. The country can also offer trade with China or other member countries of ASEAN (Association of Southeast Asian Nations). Thailand has advantages in terms of transport costs to the...
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...DISCUSSION Note: Questions from the end of the chapters can also be used for discussion questions Chapter 2: Foundations of Modern Trade Theory: Comparative Advantage Critical Thinking and Discussion Questions: QUESTION 1: Mercantilism is a bankrupt theory that has no place in the modern world. Discuss. QUESTION 2: Is free trade fair? Discuss. QUESTION 3: Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as “unfair” import competition. Is such competition “unfair”? Do you think that this argument is in the best interests of (a) the unions, (b) the people they represent, and/or (c) the country as a whole? QUESTION 4: What are the potential costs of adopting a free trade regime? Do you think governments should do anything to reduce these costs? What? QUESTION 5: The world’s poorest countries are at a competitive disadvantage in every sector of their economies. They have little to export. They have no capital; their land is of poor quality; they often have too many people given available work opportunities; and they are poorly educated. Free trade cannot possibly be in the interests of such nations! Discuss. Chapter 3: Sources of Comparative Advantage Critical Questions: QUESTION 1: In a world of zero transportation costs, no trade barriers, and nontrivial differences between nations with regard to factor conditions, firms must expand internationally if they...
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...Thai Women Thailand is a small country located near Vietnam and adjacent to Cambodia Malaysia and Laos, its population is sixty seven million. The region of Bangkok is a hotspot for tourism known for its amazing beaches, wild parties and incredibly luxurious hotels. But what these tourist never see is the heavily industrialized export minded back bone of Bangkok and the workers who fuel it. From throughout Thailand rural workers migrate to Bangkok, known as the “City of Angels” to work in its factories, on products to almost exclusively be exported out of the country. The products that these people, largely women work to make are too expensive for they themselves to buy, instead these products go zooming back across the globe to the country that offshored its work, to factory where it only had to pay the workers a fraction of what the global corporations would be forced to pay if the work was to be done in the same country to which its products were intended to be bought and sold. But these factories aren’t sweat shops, they don’t utilize forced labor or child workers, the hours these women work aren’t wholly unreasonable. “The reason that global corporations choose to manufacture in Thailand is no secret. A Third World standard of living leads to ultra-cheap labor costs. The best paid workers in this Bangkok factory make all of $25 per week. I can picture the rotund British businessman in Hong Kong explaining to us the reason the labor force in places like Thailand and China...
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...Policy http://gsp.sagepub.com/ 'Trade policy, not morals or health policy': The US Trade Representative, tobacco companies and market liberalization in Thailand Ross MacKenzie and Jeff Collin Global Social Policy 2012 12: 149 DOI: 10.1177/1468018112443686 The online version of this article can be found at: http://gsp.sagepub.com/content/12/2/149 Published by: http://www.sagepublications.com Additional services and information for Global Social Policy can be found at: Email Alerts: http://gsp.sagepub.com/cgi/alerts Subscriptions: http://gsp.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations: http://gsp.sagepub.com/content/12/2/149.refs.html >> Version of Record - Aug 16, 2012 What is This? Downloaded from gsp.sagepub.com at Taylor's University on November 5, 2012 Article gsp Global Social Policy 12(2) 149–172 © The Author(s) 2012 Reprints and permission: sagepub.co.uk/journalsPermissions.nav DOI: 10.1177/1468018112443686 gsp.sagepub.com ‘Trade policy, not morals or health policy’:The US Trade Representative, tobacco companies and market liberalization in Thailand Ross MacKenzie Jeff Collin Macquarie University, Australia University of Edinburgh, UK Abstract The enforced opening of Thailand’s cigarette market to imports in 1990 has become a cause celebre in debates about the social and health impacts of trade agreements. At the instigation of leading...
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... 4. The likelihood to become significant players in the global economy Prospects and assessments 5. Implication on global economic III, Conclusion I, Introduction Asia is the most dynamic region in the world economy at present. The development of Asia is twice the rate when compared to the other regions. The policy orientation, which stresses free movement of capital, goods and services across the national boundaries are the reasons for the growth which is possible now. The economic efficiency and transfer of technology which foster shifts in productions and comparative advantages are the results of the enhancement. (Chong) Because of the Global Financial Crisis, Southeast Asia has been the Gold rush modern- day as international companies clamor to get a piece of the action. As the major part of the young population of 600million and the increasing middle class people are the few bright spots for economic growth and investment returns. Unfortunately, according to my research has found that much of this region’s growth in recent years had been by ballooning credit and asset bubbles a pattern that is also occurring in the numerous emerging economies across the globe. (southeastasiaseconomy) This easy focus on evaluate the economic performance of South East Asian...
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...challenges for business around the world. Are the environmental challenges and ethical dilemmas Fisher & Paykel currently face outsourcing manufacturing to a developing country beneficial to Australia? Globalisation can be described as the intertwining processes of the world. It is not only an economic process, which involves rising communication and integration of all countries’ economies through the growth in international trade and investment, but also the rapid cultural, social, technological and industrial exchange between nations (IYP, 2002, p. 11). Globalisation presents significant opportunities, as well as many challenges, for business around the globe. Many companies are currently making the decision to move production offshore to lower expenditure and increase profits. However, there are numerous environmental challenges, as well as ethical dilemmas involved with outsourcing. Throughout this essay I will show how globalisation is connected with the present issue of New Zealand’s ‘Fisher & Paykel’ (F&P) Brisbane plant outsourcing manufacturing of their whitegoods to Thailand. Shown by exploring the reasons and challenges involved both in the business environment and ethical arena. Such ethical issues under scrutiny at present are the loss of Australian jobs and the replacement of low wage employment offshore. After the analysis of various sources of information, it will be clear that the move by Fisher & Paykel, to commence production offshore, is in fact beneficial to the Australian...
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...Porter's Diamond of National Advantage (Part I) Classical theories of international trade propose that comparative advantage resides in the factor endowments that a country may be fortunate enough to inherit. Factor endowments include land, natural resources, labor, and the size of the local population. Michael E. Porter argued that a nation can create new advanced factor endowments such as skilled labor, a strong technology and knowledge base, government support, and culture. Porter used a diamond shaped diagram as the basis of a framework to illustrate the determinants of national advantage. This diamond represents the national playing field that countries establish for their industries. The complete Porter’s Diamond system (Porter, 1998, pg 127) The individual points on the diamond and the diamond as a whole affect four ingredients that lead to a national comparative advantage. These ingredients are: The availability of resources and skills, Information that firms use to decide which opportunities to pursue with those resources and skills, The goals of individuals in companies, The pressure on companies to innovate and invest. The points of the diamond are described as follows: I. Factor Conditions A country creates its own important factors such as skilled resources and technological base. The stock of factors at a given time is less important than the extent that they are upgraded and deployed. Local disadvantages in factors of production force...
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...Annotated Bibliography Mitry, D. J. (2008, November). Using Cultural Diversity in Teaching Economics: Global Business Implications. Retrieved February 3, 2016,, from http://search.proquest.com.ezproxy.liberty.edu:2048/docview/232977843?pq-origsite=summon The purpose of this article was to discuss the concerns how globalization have allegations for education globalization an how accumulating cross-cultural interactivity have implications for education in general which may present valuable academic opportunities in the practice of teaching economics for business students. The author defines a method for using cultural diversity measures in teaching economic principles courses, experiments were performed to test the impact of a teaching approach that explicitly includes cultural diversity measurements in a classroom discussion and statically tested student learning outcomes using this type of approach. In order for students to obtain profitable skills they need to be able to physically apply basic economic models to an casual observation. Further research reveals students economics test are lower than any other subject, except science. Today students need to learn how to synthesize economics with other business tools in the global context. Other disciplines associated with the functional areas of business has avidly incorporating implications of globalization for teaching. Chang, S. J. (2010, February). When East and West Meet: An Essay on the Importance of Cultural Understanding...
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... and propose a way to prioritize policy measures. Our flowchart approach leads to the following three policy prescriptions: (1) Malaysian firms should establish sites for exporting compact cars with automatic transmissions; (2) actors in the public, semi-public and private sector should work to upgrade skilled labor; and (3) the central government should promote liberalization and deregulation to attract foreign firms into the supporting industries. Keywords: Malaysia, automobile industry cluster, policy prescriptions, actors, deregulation JEL classification: G18, O18, R11 * Executive Vice President, Japan External Trade Organization (JETRO) E-mail: akifumi_kuchiki@ide.go.jp The Institute of Developing Economies (IDE) is a semigovernmental, nonpartisan, nonprofit research institute, founded in 1958. The Institute merged with the Japan External Trade Organization (JETRO) on July 1, 1998. The Institute conducts basic and comprehensive studies on economic and related affairs in all developing countries and regions, including Asia, the Middle East, Africa, Latin America, Oceania, and Eastern Europe. The views expressed in this publication are those of the author(s). expressed within. Publication does not imply endorsement by the Institute of Developing Economies of any of the views INSTITUTE OF DEVELOPING ECONOMIES (IDE), JETRO 3-2-2, WAKABA, MIHAMA-KU,...
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...business, internal factors, such as the company’s culture, vision, and its own products are extremely important for their success. However, the external factors are also so important that every business should pay special attention to them. A model has been invented to describe those external factors that influence business activities. This model is called the “PESTLE Analysis”, which is formally known as “PEST”, and was first invented by Francis Joseph Aguilar, in his book “Scanning the Business Environment”. PESTLE Analysis is a model to analyze external factors that may have impact on business activities. P stands for Political, E,S,T,L,E, stand for Economic, Social, Technological, Legal and Ecological.(Francis, 1967) In this model, the first factor, the political factor, can impact most aspects of our society, whether for individuals or organizations, in developing countries or developed countries. The reality is that any strict policies, tense political situations, or even a little transformation may cause the business to suffer a lot, and even go bankrupt. Such as the sovereignty dispute of South China Sea in 2013-2014, the anti-foreign riot in Vietnam in 2013, and the controversial election in Indonesia and India in 2013, in recent years, political factors do affect in Asian business activities in many aspects. This project will first explore what political factors are and why political factors could affect business...
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...| Asian Crisis of 1997 | | | Prepared by:Azra Becirovic and Sanela Bilalic | | April 21, 2012 | Long before Asian financial crisis has started, South Korea, Thailand, Indonesia, and Malaysia had an increasing economic performance; economy was fast growing, saving rates were high, and inflation low. Turning point in Asian economy was 2 July 1997, the day when Thai Baht fell around 20 % against the $US. “It all began in Thailand’ summarizes the conventional explanation of the early stages of the crisis.” (Hill, p.3) How it all began, what factors caused the crisis, what segments were affected the most, what was the backup plan, and what policies should have been taken to prevent the crisis are the points that this paper will cover. First and Second-Generation Models According to 1996 annual report of Bank for International Settlements (BIS), pre-crisis fundamentals exhibit economic performance of Asian countries. They’ve experienced moderate inflation rates of about 6%, high savings rate of 32%, and trade openness indicators of 39%. Table 1: East Asian Economic Conditions Before Crisis Although accounting and macroeconomic analytics have failed to foreseen the currency crisis, which is inevitable, first and second-generation models explain us was it due to weakening macroeconomic fundamentals or financial contagion. In accordance to first-generation model developed by Krugman 1979, market-speculative movements, in response to policies, are incompatible...
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...Table of Content 1. Introduction .................................................................................................. 1 2. Causes of the Booming Sex Industry .......................................................... 2 3. Economic implications of Sex Industry...................................................... 3 3.1. Thailand ................................................................................................. 3 3.2. Philippines .............................................................................................. 5 4. Social implications of Sex Industry ............................................................ 8 4.1. Moral Implications ................................................................................ 8 4.2. Child Prostitution .................................................................................. 9 4.3. Sex Trafficking and Slavery ............................................................... 10 4.4. Health and Cost Issues ........................................................................ 11 5. Recommendations ...................................................................................... 14 6. Conclusion ................................................................................................... 17 7. References ................................................................................................... 18 1. Introduction The sex industry involves the sale of sex related...
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...SEARCA Agriculture & Development Discussion Paper Series No. 2007-1 Why Does Poverty Persist in the Philippines? Facts, Fancies, and Policies Arsenio M. Balisacan SOUTHEAST ASIAN REGIONAL CENTER FOR GRADUATE STUDY AND RESEARCH IN AGRICULTURE Science and education for agriculture and development Arsenio M. Balisacan SEARCA College, Los Baños, Laguna Tel/Fax: (63) 495362290 E-mail: post@agri.searca.org The SEARCA Agriculture and Development Discussion Paper Series aims to disseminate information on current trends or researches to inspire discussion between the author and other stakeholders in the same field of interest. SEARCA encourages readers to directly contact the author through the address provided or join the discussion board for this paper at http://bit.ly/searca-dps-2007-1. DISCLAIMER The point of view taken in this paper is entirely that of the author and does not reflect in any way, SEARCA’s position. INTRODUCTION A ddresing the widespread poverty problem is the single most important policy challenge facing the Philippines. Not only is poverty high compared with other countries in East Asia, but also its reduction is so slow that the country has become the basket case in the region. Proposals peddled to address the poverty problem are plenty—and keep growing. At one end of the spectrum are proposals contending that the root of the problem is simply the lack of a respectable economic growth. Putting the economy on a high-growth path is prescribed...
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