The paper 'Trade Investment and Economic Policy in Asia" is a perfect example of a macro and microeconomics case study. There have been numerous claims and observations that the Asian economy has been growing to global standards as a result of the economic reform measures that are being taken by the Asian States. The truth about these claims is however debatable and requires sufficient and relevant evidence to support it. This essay discusses these claims in particular reference to Thailand. It outlines the major economic reform measures that are currently in place in Thailand.
This paper further highlights the indicators of globalization in Thailand such as finance, trade, and ‘ new-economy’ indicators. It also explains the macroeconomic performance of Thailand in the current global crisis. This essay finally discusses whether or not the current Global Financial Crisis (GFC) would affect the economy of Thailand and the prospects for its speedy recovery if the economy would be affected negatively. The economy of Asia is said to comprise of over 46 different states that have over 4 billion people living in them. This translates to about 60% of the world’ s total population.
China is known to be the largest and most powerful economy in Asia and the second largest in the world. The wealth found within Asian countries varies widely between the different states (Allen 2008). The variation and differences are brought about by the vast size of the Asian continent. The large size definitely translates into a huge range of differing cultures, historical ties, government systems, and environments (Ammar 1998). In terms of nominal GDP, the largest economies in Asia are China, Japan, India, South Korea, Indonesia, and Iran.
The wealth that is measured in terms of GDP per capita is mostly concentrated in territories that lie in East Asia. These include South Korea, Japan, Hong Kong, Taiwan, and Singapore. Other oil-rich states in the middle region are also considered as wealthy. These include countries such as the United Arab Emirates, Qatar, Saudi Arabia, and Iran (Appleby 2010). Economic surveys carried out in Asian countries reveal that Asia is currently undergoing industrialization and rapid economic growth that is spearheaded by China and India. These two countries are the fastest-growing major economies of the world.
This industrialization and rapid growth are exceptional of Japan, Singapore, Hong Kong, Taiwan, and South Korea which are already industrialized at great levels (Benjamin 2008). The countries in East and South-East Asia usually rely on trade and manufacturing for their economic growth and sustenance. Those in the Middle East, on the other hand, rely more on the production of goods such as oil which is the main commodity. Since the rest of the world has been experiencing large trade surplus and rapid economic growth, Asia has not been left out.
It has in fact accumulated over the US $ 4 trillion in terms of foreign exchange reserves. This is more than half of the world’ s total foreign exchange reserves (Bank of Thailand, Economic Research Department 1998). Thailand is a country that was formerly called Siam. It is today officially referred to as the Kingdom of Thailand which is centrally located in Southeast Asia. It is bordered by Burma, Laos, Cambodia, Malaysia and the Andaman Sea. Thailand is therefore ruled by a King. The economy of Thailand is one of the newly industrialized economies in Asia (Ministry of Finance, Fiscal Policy Office 1999).
Thailand is currently heavily dependent on exports. In fact, exports account for over two-thirds of Thailand’ s Gross Domestic Product (GDP). According to the Ministry of Finance, Fiscal Policy Office (2010), Thailand experienced a Gross Domestic Product growth of 8.0% in 2010. This made Thailand be one of the fastest-growing Asian economies and the fastest growing South East Asian economy.
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