Gross Domestic Product of Thailand and Indonesia

Table of Contents

1.  Introduction -------------------------------------------------------------------------- 3
2.  Economic Environment ---------------------------------------------------------- 3-7

1. GDP ---------------------------------------------------------------------------- 3
2. Inflation ----------------------------------------------------------------------- 4
3. Foreign Direct Investment (FDI) ------------------------------------------ 4
4. Infrastructure Development ---------------------------------------------- 5-7

1. Political Environment and Risk ------------------------------------------------ 7-10

1. Political risk ------------------------------------------------------------------ 7
2. Political system/corruption -------------------------------------------- 8-10

1.  Business Environment -------------------------------------------------------- 10-12

1. Human Development Index (HDI) ----------------------------------- 10-11
2. Ethical Behavior ------------------------------------------------------------ 11
3. Wages / Labour law -------------------------------------------------------- 11
4. Skincare market trend and potential ------------------------------------- 12

1.  Country Choice -------------------------------------------------------------------- 13

1. Weighted Index ------------------------------------------------------------- 13
2. Decision ---------------------------------------------------------------------- 13

1.  Conclusion -------------------------------------------------------------------------- 14

List of References ------------------------------------------------------------------ 15-17

1.  Introduction

Thailand and Indonesia are geographically close countries known by all to belong in the southeastern region of the world, however, there are many differences between the two. This report analyses their economic, political and business environments by comparing which country can potentially fulfill the company’s original values and missions. This report will also examine the ethical practices on producing quality products to best serve the markets.  

1.  Economic Environment

1. GDP

Gross Domestic Product (GDP) plays an important indicator to gauge a country’s economy by determining which Southeastern country will best fit to produce Kosmea’s skin care products. It measures the total dollar figure of a country’s output and as such is usually used to measure its productivity in conjunction with other factors such as employment rate. The GDP for Thailand is 395.168 billion ($US). The growth rate of Thailand grew by 0.6% in the most ended quarter (the three months to September 2016). This did not meet the expected 0.7% and is down by 0.1% compared to the previous quarter. And this indicates the lowest growth rate of Thailand since the quarter of June 2015. However, it is expected to increase by 0.54% in 2018 (Thailand Data, 2016) while Indonesia has a GDP of 861.934 billion ($US). The GDP of Indonesia is expected to increase by 0.42% in the year 2018 (Indonesia Data, 2016) with an annual GDP growth of 5.11%, which has increased by 0.5% since 2013. Figure 1 below illustrates the percentage change in GDP between both countries.