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ECX3550 Business In Asia

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  • Course Code: ECX3550
  • University: Monash University
  • Country: Australia


You will required to respond to a consultancy problem in the picture attached. analyse the problem and then provide an overview of how you would address or solve the problem.

You will need to justify your recommendations with sound demographic and macro/micro economic information- with short run and long run analysis. You will then have to pitch your solution and recommendations to the board of the company. It would be advantageous to also have some peer reviewed journal articles to support your case.

1. Write a short solution to this consultancy problem.

2. Highlight the use of reliable demographic and macro/micro economic information - both short and long-term analysis - to justify your recommendations.

3. The attached PDF is specific to the assignment requirements




The vehicle manufacturing firm wants to invest in South East Asia.
They have a considerable experience in the manufacturing of the vehicles.
The investment company used to manufacture vehicles in  Europe.
It will be exporting cars in case of South East Asia.
The car production companies are of the luxury brand.

Types of cars to be produced.

Thailand is known to produce more than two million cars in the previous year.
Most of the companies comprises of the Toyota, Nissan and Mitsubishi that manufactures cars.
Only basic cars are suitable for production in Thailand as mostly middle class population known to stay there.
Government also provides incentives for manufacturing of cars in Thailand.

Reasons for investing in Thailand

The investors in Thailand are known to benefit from the free trade Agreement with China, Australia, India and many other countries of ASEAN.
Thailand is also known to be one of the largest manufacturers in the world.
Skilled and cheap labour force of Thailand will be helping in earning huge profits.
The presence of Eastern Economic Corridor brings a great importance on the next generation automotive industry to Thailand

Reasons for investing in Thailand

Thailand is also classified as an upper middle income country in South East Asia.
This particular country is also known to enjoy few trade barriers for the exports.
Huge number of cheap skilled labour, excellent support from the government and trade liberalization are the positive points.

Tax policy in Thailand

In case of Thailand, the taxes are mostly imposed at both the local as well as national levels.
The central government of Thailand is the main taxing authority.
The direct taxes are the personal income tax, corporate income tax and the Petroleum income tax.
Business tax is generally collected at the fixed rates on the revenue collected in case of certain business which are not subjected to VAT.

Middle class population in Thailand

More than sixty percent of the population of Thailand comprises of the middle class population.
The Thai middle class is mostly concentrated in Bangkok and in other urban areas.  
 The Thai society are mostly mordernized , globalized and liberal in nature.
The economic policies of Thailand have increased and there is an expansion of both local and foreign trade.

Infrastructure of Thailand

Infrastructure of Thailand is quite good compared to other countries.
Bangkok had a huge facelift in the past few years.
There have been huge improvement in rail, road and water transport.
The communication infrastructure of Thailand is quite impressive in nature.
Thai government has formulated a long-term infrastructure plan to meet the demands and requirements of a newly industrialized country.

Monetary policy of Thailand

The bank of Thailand is known to meet every six weeks in order to determine the level of the monetary policy target variable.
The main objective of the monetary policy is to maintain the stability of price by keeping the inflation within the target rate.
The monetary policy made by the Bank of Thailand have important impacts on the financial markets of the world and on the economic growth.


Bhandubanyong, P., & Pearce, J. T. (2017). Appraisal of SME Casting Industry in Thailand. ISJET, 1.

Kuroiwa, I., & Techakanont, K. (2016). Formation of Automotive Manufacturing Clusters in Thailand. ERIA Discussion Paper, 32.

Nidhiprabha, B. (2018). Macroeconomic Policy for Emerging Markets: Lessons from Thailand. Routledge.

Ramsay, A., & Doner, R. F. (2018). Thailand: From Economic Miracle to Economic Crisis. In Asian Contagion (pp. 171-207). Routledge.
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