Economic and Political Environment of Thailand

Running head: INTERNATIONAL BUSINESS
International business
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2INTERNATIONAL BUSINESS
Table of Contents
Introduction:...............................................................................................................................3
Economic and political environment of Thailand:.....................................................................4
Economic environment:.........................................................................................................4
Political environment:............................................................................................................6
Political path for shaping the economy of the country:.........................................................6
Conclusion:................................................................................................................................7
Reference:..................................................................................................................................9

3INTERNATIONAL BUSINESS
Introduction:
21st century is the era of globalisation and it has slowly and steadily turning the
global economy towards a more prosperous front and Asian economies during the recent
decades has become the face of the astonishing growth. Among most of the developed
economies Thailand become one of the renowned one due to its fast growth path and positive
account surplus. Though the economy is a newly industrialised state yet it has made itself
placed in the list of highest exporter to the developed countries like USA, Japan, EU and
China. Though the economy has high amount of dependence on the exporting based
economy, it can be arguably one of the most stable and growing economy within the Asian
continent (Santandertrade.Com). Dependence on the agriculture of Thailand is low whereas
main source of the national income comes from the secondary and tertiary sectors. Contrary
to this, it can be seen that the job creation within the domestic economy is largely generated
through the agriculture making the economy a developing one with the headline inflation of
3.02%, economy of Thailand has maintained good amount of growth under a reasonable
market pricing strategy that has made it one of the fastest growing economy in the Asian
region (Coface.com). Considering the south-east Asia, it can be seen that Thailand is the
second largest in the region and the Gross Domestic Product (GDP) per capita is moderate
enough that makes the domestic economy fertile enough to sustainable development in
future. It has moderate amount of population under the poverty line that often influence the
governmental policies. As far as political environment of the economy is concerned, it can be
seen that the economy has stability within the domestic environment, however, some sort of
uncertainty is persistent within the rural and urban areas due to the antagonism and uncertain
political situations. One of the main political issues within the domestic economy of Thailand
can be seen due to the lack of comparative advantage of production in capital based goods
due to the fact that aged population of the economy is highly unskilled. Housing debt is