College Papers

There is always a need in every place because the countries have various capabilities and specialize in producing a variety of things

There is always a need in every place because the countries have various capabilities and specialize in producing a variety of things. To compensate for what Thailand don’t produce, then the country has to involve trade with other countries. Thailand is known as an open economy with larger trade exposure than many of its other Asian counterparts. Trade is the lifeblood for Thailand economy, with exports and imports of goods and services accounting for most of its country’s economic output and input. Chirathivat (2015) state that exports have at times been a significant engine of Thailand growth, particularly since the Asian financial crisis of 1997 to 1998.
Besides, Thailand also offers convenient trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), and easy access into the Greater Mekong sub-region, where newly emerging markets offer great business potential (Chirathivat, 2015). Thailand now are able to supplies intermediate inputs and raw materials to the regional economies that also help to produce the final goods for the international economy since Thailand increase its links to regional supply chains. Hence, Thailand use this opportunity from these connected economies to produce its own final goods, as well as goods for the regional and global economies.
Net exports are the largest contributor to Thailand economy growth, mainly due to continued expansion of Thailand tourism and lower imports. The major Thailand trading partners of imports and exports are the United States, Japan, Singapore, and United Kingdom. The major trading partners for Thailand’s exports is USA, Japan, and Singapore based on the data obtained from the Bank of Thailand’s Quarterly Bulletin. Japan is the major source of imported goods for Thailand, especially machinery and equipment, whereas the United States is the major market for Thailand exported goods.
Other than that, Thailand vegetables are of economic significance in the country’s international trade of agricultural products(Laosutsan,2016). This is because most of the Thailand vegetables can grow all year round due to their geographical location (Cheyroux, 2003). Hence, export of vegetables has contributed enormously revenue to the Thailand’s agricultural sector and economic stability. Thus, Thailand, an ASEAN member, would reap considerable benefits from the freer regional trade as the production costs would be lower. In Southeast Asia, the ASEAN FTA has benefitted Thailand businesses with the increase in exports.
In conclusion, it can be said that trade cause Thailand economic growth that provided the policy measures and economic infrastructure which is accommodative enough to survive with the changes in a social and financial situation that result from it.