Case Study Thailand

Country Case Study – Thailand

Part 1:

1. Thailand is a constitutional monarchy that traces it's founding to 1238 and its current monarchy traces to 1767 with King Rama I. Today, Thailand has a population of 65.74 million men and women (Data based on Bank of Thailand) and an annual GDP (2007) of $246 billion. Thailand has the unique distinction of being the only South East Asian country never to have been colonized. The majority of the population (40%) is engaged in agriculture, with rice being the most important crop. Thailand is the largest exporter of rice in the world. Thailand exports $150 billion; these exports include automatic data processing machines and parts, automobiles and parts, precious stones and jewelry, refined fuels, rubber, electronic integrated circuits, polymers of ethylene and propylene, rice, iron and steel, rubber products, and chemical products. As of 2007 Thailand's per capita income was $3,738 with an unemployment rate of 1.4% and an annual GDP growth rate of 4.9%.

2. Thailand's population is mostly rural with a work force of 36.94 million. The population is concentrated in the rice growing areas of the central and northeast regions. According to the central bank of Thailand 39% of the workforce is engaged in agriculture which accounts for 8.9% of the GDP. However, the urban areas are growing and manufacturing now accounts for 40.1% of the GDP and employs 14.5% of the workforce. The second largest work force in Thailand is the service industry, accounting for 31.3% of the job and 37.2% of the GDP. With the growth and importance of manufactured goods and services to their economy, Thailand has recognized the importance of an educated workforce. Therefore, the constitution was revised to mandate 12 years of free education. This has since been increased to 14 years to allow for 2 years of pre-primary school. Additionally, Thailand spends 4.2% of it's GDP on education and has increased to number of universities to help meet the growing shortage of skilled technicians in the country. The literacy rate is 94.9% male and 90.5% female which reflects a commitment to education. Thailand also invests 22.2% of its GDP. Attached in the appendix is the value of the Stock Exchange of Thailand from 1988 to present. The market value as of May 2009 was 4,447,403 million Baht or $130.6 billion. Like the US market, it has suffered significantly from this economic crisis falling from a high in October 2007 of 7,009,801 million Baht or $202.6 billion. Thailand like most of Asia experienced an economic downturn in 1997 and 1998 and had since recovered. It has had a modest growth rate ever since ranging from 4% to 5%, this dropped to 2.6% for 2008. This is significantly less than its neighbors China and Vietnam, which have had average growth rates of around 10%. A significant issue that Thailand has experienced that has slowed