Reasons behind choosing Thailand
The nation is having a very suitable location that is acting as gateway towards Asia's heart. The economic market is growing with high rate and further it also provides very smooth trade business with other countries including India and China and other countries of ASEAN. The country has good approach for approach to sub-region of Greater Mekong where there are current developmental potential of new markets (Brown & Lee, 2000).
Thailand is considered among the founders of ASEAN further it has also been an integral part for the establishment of ASEAN's free trade route. On the July 1st 2010 AFTA took power for another 6 countries and for these member nations the duties were charged as zero. These countries were Singapore, Thailand, Philippines, Indonesia and Brunei. Thailand maintains healthy economic relations with other ASEAN counties .Thus the goods manufactured at Thailand have proper access to the counties of ASEAN
Social and political stability
Thailand is known to be a foreigner and tourist friendly country. Basically it is a Buddhist nation which follows a constitutional government under the monarchy. Apart from that it also has a great dignity for the monarchy of Thai and lord Buddha Teachings. Here the people are mostly Buddhist and at the same time they have respect for almost all the religions. Your Majesty or king is known to be the head of all the religions. Thailand is also showing improvement in its economic sector and it can be analyzed by rapid growth, good amount of exports and customer friendly domestic market. The investors are foreign are usually attracted and influenced skilled work force and cheap labor.
Thailand infrastructure is very much developed along with its effective transport system and this country has well maintained IT networks which help them to grow the business and living standards. They have world standard estates of industries which give standard and sophisticated facilities and this advantage is usually utilized by many of the multinationals. (Hatch, 2016)
The investment policies of the country are very well defined and these policies basically dedicate towards liberalization and further contribute to free trade. The foreign investments are usually contributing towards developed skills, innovation, technologies and all these skills are actively promoted by the government itself. Apart from that Thailand is continuously raking within the top list of attractive investment countries in the survey done by the international bodies. The government agencies completely support the investors. With the help of investment board the government provided a wide range of incentives regarding tax, services of support and import duty tax reductions to a broad range of activities been promoted. The organizations which are getting the privileges regarding promotion of investment further there is no need of local content or export need as Thailand's rules with respect to investment is in total compliance with the regulations of WTO.
New and old industrial growth
Due to fast growth of economy and strong industrial support the nation's manufacturing production has increased and diversified on a large scale in both the cases regarding new and established organizations. The government has laid stress by inviting the investments largely in six regions which is considered a key to Thailand's industrial growth. The six industries include agriculture, agro –industry, electronics, automotive, agro-industries, ICT and other added value services indulging healthcare, entertainment and tourism etc. These are some of the important industrial sectors where return on investment can provide us good amount of profit.
Culture of Thailand
Thailand name was taken from an ancient group known as Thai. The country was really fortunate not to suffer the colonial rule under the European countries despite it had total monarchy till the year 1932.After that time it got complete constitutional monarchy.The entire country is surrounded within an area of 198114 square miles which is approximately 513,115 square kilometers. Further the entire country is subdivided into four other regions namely Laos, Burma, Cambodia and Malaysia. The estimate of population is about 62 million all over the country. The total estimate of Thailand's population is ranging around 62 million. Basically the country has 75 no of groups of ethnic and around 84% of the entire is Thai including public of Tai-speaking ethnic groups. These people are in total 36% of the total population of the country. The people of Thailand are usually friendly and polite thus it is important for them to smile. The people over there provide personal space but at the same time they are not allowed to touch except people among same sex, friends and family members. Elder people are considered crucial in the culture of Thai and are also revered. Apart from that the monks of Buddhist should be treated with respect because they are hold as high regard by the Thai public and there are various laws associated for protecting them. The cultural places of attractions are having the significance of culture thus the places of temples are respected by the community and individuals. So the dress code for visiting these places requires to be polite (Medlik & Ingram, 2000)
Business culture of Thailand
As per the Doing Business 2016: Measuring Quality and Efficiency states that Pacific and East Asia are the most represented areas after the Europe among the 20 top economic countries of the world. Further a large no of economies in these two areas are going through various changes so that it can improve its environment of regulation for medium and small enterprises. If we compare any country on thr basis of methodology then we can understand that Thailand is holding a position of 49 out of the other 189 countries .Further this country is one of most attractive place for doing business for the foreign as well as Thai investors. Further in the coming time Thailand will provide ample amount of opportunities to improve the environment of business by various other reforms like improvement of quality in case of land administration index through publishing and digitizing the registry of the land. This kind of reforms can develop the country's competiveness as compared with other countries of middle class income that have pursued investment climate reforms vigorously in recent years (Geppert & Dörrenbächer,2014).
THAILAND VS SINGAPORE Business culture
As Asia is emerging as the next power house for global economic order, the foreign companies are increasing along investors, entrepreneurs. .These people are in vesting huge amount of money in Asia itself. Thus in order to choose among secure, stable, low tax rates and business friendly jurisdiction; the investors and big companies are investing here. Hence the result of the economic survey states that international reports and rankings of business are the parameters in which Asia is topping the list (Hoyle, 2013).
Here we will be examining the suitability of business for Singapore as a business jurisdiction in Asia vis-a-vis Thailand.
.According to the latest reports stated by the World Bank Singapore is considered the one of the best location for the purpose of business in the entire world among the other 189 countries. Further it got 10 # rank for starting new business, #1 for protecting the investors ,#5 for tax rates and #1 for enforcing new contacts. But at the same time it can be noticed that the rankings of Thailand are# 96,#36,#70 and #57 on the similar parameters. Thus the Singapore company incorporation just take 24 hrs but it is excluding due diligence and compliance further competed over online within just two simple techniques but the setting up of any company in Thailand takes 32 days.
Singapore is the considered 8th best country for doing the business as stated by the 2015 best business for the business list that was published by Forbes but in case of Thailand, it was not rated among the top 50 countries but was posited in 75 th position.
Singapore is known to be the best country in the world for openness to trade as declared by the World Economic forum report but in this case Thailand is rated in 57th position out of the 138 nations. Singapore maintains open trade policy and there are very less obstacles in the export and import market (Bryman & Bell, 2007).
Individualism versus Collectivism: This particular issue is actually addressed by the entire dimension and it is the degree of independence a society maintains among its members. Further it has to do with whether the public's individual image is explained through l or we. In the individual communities public look after themselves and their direct members of the family whereas in –case of the collectivist communities public are introduced within group which takes care of them in return to loyalty. Thailand is considered as the highly collectivist nation. Loyalty within the community in a collectivist type of culture is very common and over rides most common social rules and regulations. Apart from that The Thai public is not confronting ones and in terms of their communication yes do not mean acceptance for any agreement (Crotts, Buhalis & March , 2000).
Power distance: The power distance usually runs from low end where all the members of the community are given equal rights to the highest end and where distribution of rights and resources are accepted. Thailand is regarded as the country which gives equal rights to all its citizens.
Uncertainty Avoidance Index [UAI]: This particular index measures the uncertainty tolerance. In Thailand the cultures of greater UAI are very less tolerance of unexpected situations and ambiguity. in this case societies have very strict rules and regulations. But Thailand do not have such problems in the society. This case is applicable for China.
Long Term Orientation: This indicates how a community maintains some of the important links with its old past but at the same time also handling challenges of future and present. Thailand has normative culture instead of being pragmatic. The public have string concern for establishing their truth further their thought process is normative as they have good amount of respect for their traditions.
Achievement versus Nurturing: The society in this case is driven by various characteristics of competition, achievement and success. This is system of value which starts in schools and continues throughout the organizational life. Thailand has a famine community and it maintains a low masculinity rate.
The following report talks about the business market of Thailand and further it is been compared with my home country Singapore. The details regarding Thailand are entirely covered along with the business market scenario over there. Thailand has a very attractive business market and it provides a perfect gateway to Asia. Huge multinationals are trying to invest there as the rules and regulations of FDI and other factors related to industrial growth is very effective. Any company investing here will get a chance to enter Asia as this country is able to provide a perfect pathway towards the entire Asia. Hence in order to establish the business in Thailand it is important to study the entire issues. The acknowledgement of dept knowledge about the culture is another important factor required to set up any business. The country is regarded as peaceful one and further it follows Buddhist cultures. Apart from that it is one of feminine dominated country all over the Asia. So while investing in any business the investors need to have the keen acknowledgement regarding specific details of the country. Although Singapore is one of the most developed country in Asia but Thailand is also improving its business indexes side by side and the government is also playing an important role to set up business over there. Hence making policies which are free from corruption and these policies are attracting investors all across the world.
Geppert, M., & Dörrenbächer, C. (2014). Politics and power within multinational corporations: Mainstream studies, emerging critical approaches and suggestions for future research. International Journal of Management Reviews, 16(2),pp.226-244
Hoyle, R., (2013).Wesfarmers Goes Against the Grain.The Wall Street Journal,61(2),pp.122-125
Hatch, P .,(2016).Coles owner Wesfarmers moves up to Australia's top company by revenue,
beating Woolworths, Rio Tinto and BHP .The Sydney Morning Herald,73(5),pp.234-255
Brown, J. R., & Lee, D. J. (2000). Managing marketing channel opportunism: the efficacyalternative governance mechanisms. Journal of Marketing, 64 (2), 51-65.
Crotts, J. C., Buhalis, D., & March, R. (2000). Introduction: Global alliances in tourism and . hospitality management. International Journal of food and health Administration, 1 (1), . 1-10
Bryman, A.,& Bell, E ( 2007). Business research methods. Second edition.. Oxford University
Inc, 3 (9) 12-13
Kotler, P., & Armstrong, G .( 2004). Principles of marketing. Pearson education Inc.10 (3) 82-86
Medlik, S.,& Ingram, H . (2000). The business oh hotels. Great Britain. Elsevier Ltd , 4 (6) , 43-49