International Business

Topics: Inflation, Thailand, Bangkok Pages: 11 (2996 words) Published: March 29, 2013
1. Objective

The Objective of this assignment is to distinguish the importance of political and economic risks in International Business faced by Malaysian Manufacturing firm which exporting to an ASEAN country.

I had chosen Hard disk drive manufacturing firm in this study and the ASEAN country for us to export is Thailand. 2. Introduction of ASEAN country

ASEAN(Association of Southeast Asian Nations), was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN.

Among the ASEAN country, I had choose Thailand to discuss the political and economic risks faced by my product in the international business.

2.1 Name of the country :-
Thailand (officially the Kingdom of Thailand), formerly known as Siam. 2.2 Demographic Characteristics: -
Majority population are Ethnic Thais which is 75% while Thai Chinese make up 14 percent, remaining 11 percent made up of various other groups. 2.21 Population distribution
According to the Thai Ministry of Foreign Affairs, Thailand has a population of about 70 million people. However, 2010 decennial census tallies have revealed far less at below 66 million, post-censal adjustments are being carried out to see if it was a reporting error or due to rapidly falling birth rates and rising death rates. Furthermore, Thailand is a major recipient of immigrants from Cambodia, Burma, and Laos, but a net loser of migrants to Malaysia due to the Pattani conflict, as well as to developed nations.

2.22 Religions

Buddhism 94.6%, Islam 4.6%, Christianity 0.7%, Hinduism 0.1%, other (including Judaism) 0.1% (2000)

2.23 Languages

Thai (including Isan), English (secondary language), Isan as well as other ethnic and regional languages and dialects. 2.24 Literacy
definition: age 15 and over can read and write
total population: 92.6%
male: 94.9%
female: 90.5% (2002 est.)
2.25 Sex ratio
at birth: 1.05 males/female
under 15 years: 1.05 males/female
15-64 years: 0.98 males/female
65 years and over: 0.83 males/female
total population: 0.98 males/female (2008 est.)
2.26 Life expectancy at birth
total population: 73.6 years
male: 71.24 years
female: 76.08 years (2011 est.)

2.3 Geographical Location of Thailand

Thailand (formely Siam) is the geographical heart of South-East Asia. The famous golden triangle, located at the nation's northernmost point, is where Thailand 's borders meet those of both Laos and Myanmar ( Burma ). The border with Myanmar continues to the west and then south as far as the Malay Peninsula, much of which is occupied by Thailand .  On the east, the border with Laos meanders southeast along the Mekong River until it reaches Cambodia , which is due east of Bangkok , the Thai Capital. In the south is the Gulf of Thailand . Roughly the size of France (200,000 sq. miles).  

2.4 Climate
Warm and tropical climate with a rainy season from June to October and a dry season the rest of the year. Temperatures :75 to 92 degrees Fahrenheit.
There are three seasons: the cool season (November to February), the hot season (April to May), and the rainy season (June to October), though downpours rarely last more than a couple of hours.

3. Discussion on types of political risks

Political risk is the risk of financial, market or personnel losses because of political decisions or disruptions. Also known as "geopolitical risk."According to Maplecraft’s Annual Evaluation of political risk hotspots 2012, Thailand scored 5 in societal gains and 4.5 in political freedom where the full mark was 10. Political risk is playing...
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