Ford Motor Company In Thailand
Ford Motor Company in Thailand
Thailand Background and Information
Economic Base
With the population approaching 70,000,000, Thailand is one of the largest South East Asian economies. It had an impressive economic growth rates around 10 percent before the bubble economy burst in 1997. As a low cost manufacturing exporter, Thailand is well known for its automobile manufacturing industry, earning the name "the Detroit of Asia". (Davies, 2002)
Traditionally the economy has been agriculture-based. Today, manufacturing has become the primary force behind the economy, but shortage of skilled labor remains a constraint. About 62 percent (Dunung, 1998) of the population is employed in agriculture-related industries. Many work on the large rubber and coconut plantations in the southern peninsular region.
Thai industries include food processing, cement, consumer products, sugar, beer, tires, electronic goods, computer peripherals and components, and automobiles and auto parts. Major exports include textiles and clothing, electrical appliances, rice, fish products, computers and integrated circuits and parts, rubber, tapioca, leather products, footwear, and precious stones and jewelry. Major crops include rice, rubber, tobacco, cotton, jute, beans, sugar cane, maize, and tapioca. The country has had difficulties with drug trafficking, but the government is making efforts to control and halt it. (Dunung, 1998)
Thailand has also developed strong service sector. Tourism is a key service sector, with Thailand sporting a strong attraction to tourists from the West and East Asia. Tourism is the largest source of foreign exchange. However expenditure per visitor is low compared to neighboring countries as well as internationally. (Davies, 2002)
The Thai economy is export-dependent, with exports accounting for 60 percent of GDP. Thailand's...
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