Country Analysis: Thailand Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts (28, August, 2011) Introduction It is essential to conduct a thorough country analysis before investing even a small amount in any country…
Let us write or edit the essay on your topic
"An MNE establishing a 100% owned Greenfield factory in thailand to manufacture compact sedans for australian and south east asia"
with a personal 20% discount.
In this essay we will conduct an investment analysis of Thailand. We will discuss political risk, social risk and economy risk of Thailand. All the discussion will help an MNE that is trying to establish a 100 percent owned Greenfield factory in Thailand to manufacture compact sedans for Australian and South East Asian customers. There are many factors that can affect the decision of the MNE and all these factors will be discussed in great detail. Political Risk of Thailand Thailand is a country where political institutions are not as strong as in the developed world. The country has had many constitutions, 17 to be exact. This shows the political volatility of the country and this can be a problem for any MNE. Political stability is very important in order for any factory or production unit to work properly. MNE would have to employee local people and they will only be able to come to factories when there will be peace and stability in the country. Thailand has serious political risk and MNE should take this into account from starting its factory in the country. The country has seen many governments from 1997 to 2011. In 2006 there was a military coup in which military consumed power and dissolved government (MSNBC, 2006). Around a whole year the country was ran by military and politics was banned. This is the reality of the political risk of the country. The shift in politics impacts an MNE in many ways. New government usually comes with a new set of policies and this creates problems for a multinational company. The new policies may involve new tax policy and this can seriously affect the profits of the multinational company. Political risk of Thailand is also a threat for the MNE because it can affect the workers who will be working in the factories. Local employees will not be able to work properly if there will be political instability in the country. MNE will also have to plan for any major political change in the country. The multinational company should abide by the laws fully in the country so that it can continue its production without any major problem if government was to change in future. Thailand is also a country where political institution is not very developed therefore corruption exists and this can also affect the MNE. In Thailand there is a conflict between the poor and rich classes and this is conflict is not expected to end, and this conflict is creating problems for businesses in the country (Reuters, 2011). This leads to peace problem in the country and business find it difficult to function. This conflict also leads to violence in the country. All these are significant political risks are to be taken into account before a car factory is set in the country. A car factory involves a great amount of workers and these workers will be employed from local sources. Therefore any instability in the country is not good for the MNE. Social Risk of Thailand There are considerable social risks in Thailand for MNEs. The country is not a developed country and wages are not as high as in developed world. This makes the country attractive as the company will have to pay fewer wages and this will lower the costs for the factory. But at the same time lower wages will mean lower level of lifestyle and higher crime rate. This is a significant social risk of Thailand and it is likely to affect the company. Employees of the company can get affected by these social risks and their performance can be reduced. Also ...
Cite this document
(“An MNE establishing a 100% owned Greenfield factory in thailand to Essay”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/44926-an-mne-establishing-a
(An MNE Establishing a 100% Owned Greenfield Factory in Thailand to Essay)
“An MNE Establishing a 100% Owned Greenfield Factory in Thailand to Essay”, n.d. https://studentshare.net/finance-accounting/44926-an-mne-establishing-a.
We can test this “piloting” of ideas in a bank which has been swamped by numerous complaints from its customers about the slow service they experience. We can introduce total quality management (TQM) which could make flexible work teams more efficient.
Economic growth in the Middle East is largely due to the occurrence of oil and gas exploration as well as the ever rising prices of the oil products in the global market. Due to the increasing prices of oil, a number of countries in the region have benefited from increased national revenues.
The currency crisis occurred in the south east Asia region since 1997, at different intervals in each affected country and spread across other South East Asian countries after, beginning from Thailand. It was primarily caused by macroeconomic and financial factors, although the political other factors interfered with the correction of the crisis.
The author states that while some countries have been able to embrace democracy others, have remained authoritarian regimes. To be able to understand the contemporary politics of South East Asia, he analyzes the region in the context of colonialism, the nationalist movements that developed as a result of the colonialism.
taught the rest of the world a lesson about how the indigenous resources and the opportunities across the world can be utilized for a country’s growth. East Asia achieved progress by getting the basics right (A World Bank Policy research report, p.5). Many American and
The country has seen many governments from 1997 to 2011. In 2006 there was a military coup in Thailand is a country where political institutions are not as strong as in the developed world. The country has had many constitutions, 17 to be exact. Political stability is very important in order for any factory or production unit to work properly.
The process of the Western Expansion into South East Asia occurred in various phases. These phases were characterized by certain unique features that differentiated them from one another. Historical records have shown that the expansion was facilitated by the major Western Imperialists such as: The United States of America, Netherlands, etc.
The island of the region ranges from the very large ones such as Sumatra, Java, and Luzon to the tiny ones such as those of Indonesia islands. Most part of the island is covered with jungle forests that make traveling hard. These physical conditions have affected the culture of the region as well as the economic activities taking place in the region.
The environmental factors in the region include huge rivers, plains, islands and mainlands that are largely in support of human habitation in the region. There are a set of jungle and sea products that are unique in the region and have formed part of international trade in most of the countries in the region in the early times to the present.
The Asian region is divided into several regions namely East, North, Central, Southeast, West and South Asia. Most of the people in Asia are natives who have lived in the region for many years and there are very few immigrants in the region. Most of the countries in Asia have strict immigration policies.
21 Pages(5250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic An MNE establishing a 100% owned Greenfield factory in thailand to manufacture compact sedans for australian and south east asia for FREE!