Thailand Globalization

Category: Globalization

Basic economic overview – Thailand is the 2nd largest economy in South east Asia, it’s main industry is automotive with a continued emphasis of agriculture
GDP growth rate – agriculture 10%, industry 44.9%, services 45.2% as of 2006
Labor force (composition) – agriculture 49%, industry 14%, services 37%, unemployment 1.8% as of 2006
Inflation Rate – 5.1% as of 2006

The currency of Thailand is the Thai Baht, and its role in globalization is important. Thailand has been known to be what they refer to as a “tiger economy” with its aggressive interest rates and its competitive attitude within the global economy. When the Thai Baht’s value dropped drastically overnight, the South Eastern Asian economy collapsed dragging millions of people with it. The IMF was the key factor in the furthering of the collapse and eventually Thailand was able to pull itself out of the mess. Thailand is very export heavy and works with the United Sates closely. Its automotive industry was a definite factor in Thailand’s success in coming back from the drastic recession of its economy. Other strengths in its economy include agriculture (although it has declined over the past 25 years) while tourism has increased. There have been increases of importation, which reflects the need to increase production. To sustain its stability the economy depends on continued reform. Over the past 25 years it has become a prominent member of the World Trade Organization and the ASEAN Free Trade Agreement.

By: Gabe and Erica