Essay on Thailand

Garrett Blamire – Kara Dunn – Nikki Corbin

Introduction

        Thailand’s economy has flourished in years past due to a well-developed infrastructure and a free-enterprise mind set. With their strong export industries, Thailand has achieved steady, positive growth as a major player on the world stage. Thailand boasts an unemployment rate at less than 1% which is among the lowest on the globe. Recently, Thailand passed a nation-wide 300 Baht ($10)/day minimum wage which attracts nearly 2.5 million migrant workers from neighboring countries. With such a large influx of skilled workers, Thailand’s economy has nowhere to go but up!

Currency

        In Thailand a unit of currency is known as the Baht. Similar to the United States, the Thai Baht can be divided into 100 satang, but single satang coins are no longer in circulation. The only coins smaller than a Baht are the 25 and 50 satang brass coins. Surprisingly, there are only a hand full of merchants who accept payment in the form of satang. Thai currency also includes one, two, five, and ten Baht coins. The different denomination Baht coins are minted in different sizes with the single Baht being the smallest and becoming larger with value. The one, two, and five Baht coins are silver in color while the ten Baht coin has a brass center with an outer silver edge. One may also find Thai Bahts in paper form. Just as in the United States, Bahts are available in 20 Baht bills (which is green), 50 Baht bills (which is blue), 100 Baht bills (which is orange/red), 500 Baht bills (which is purple), and finally the 1000 Baht bills (which is white). Interestingly enough, many hotels and other tourism driven retailer often accept foreign currency rather than Baht due to the inconsistent exchange rate. Currently, one Thai Baht exchanges for about thirty cents US.  

Industry

        Manufacturing constitutes Thailand’s main industry. It produces goods such as textiles, plastics, footwear, electronics, automobiles and cement. The manufacturing facilities are located mostly in Bangkok and the Eastern Seaboard. 36% of Thailand’s manufacturing exports are absorbed by the United States and Japan. Thailand was the 7th largest global car exporter in 2012. Thailand’s electronics industry has thrived and expanded for almost three decades, constituting 60 billion US dollars. Tourism is a recovering industry for Thailand. The multi-billion dollar tourism industry has dropped significantly in the last couple of years. This drop is most likely due to Thailand’s political upheaval and military intervention that caused more than 50 countries to caution their citizen’s about visiting Thailand. However, 2015 has already shown a significant percentage increase from 2014.

Agriculture

        For decades rice has been Thailand’s primary agricultural export. Cattle production has increased significantly due to a higher demand of beef in urban areas. Thailand is one of the largest exporters of shrimp and fish. A growing demand for pork has made Thailand a major producer of pigs. Cash crops such as rubber, coffee, sugarcane and many fruits are produced mostly on large holdings owned by the agribusinesses that began at the end of the 20th century.

Imports

        Thailand mostly imports raw materials and intermediate goods, which account for nearly 55% of total imports. Fuel and crude oil accounts for approximately 19%, next, components of electrical appliances such as refrigerators and microwaves make up 11% of Thailand’s total imports. Thailand also imports about a quarter of all manufacturing equipment and supplies used in their industries. Thailand’s main importing partners include Japan (20 percent of total imports), China (15 percent), and the European Union (8 percent). As of January 2015, Thailand imports approximately 17 billion US dollars’ worth of goods.