Thailand in 2004

            
 
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Case Details:

Case Code : ECOA135
Case Length : 17 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : Thailand
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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“Thailand has advantages of its own: it may be small, but it is a member of the ASEAN Free Trade Area, a trade block of ten South-East Asian countries with a total population of over 500m. That makes it a bigger market than the whole of Latin America.” 1

Introduction

In late 2004, as Thailand got ready for its next elections, Prime Minister, Thaksin Shinawatra's Thai Rak Thai party looked poised for victory. Thaksin had survived a complete parliamentary term - a first for Thailand and an impressive achievement, considering that in the decade before the last election, the country had seen eight different governments, including one installed by a military coup.

In 2001, the year Thaksin took office, the economy had grown by only 2.1%. The fallout from the Asian crisis of 1997 was still evident. Banks, weighed down by bad debt, were not making new loans.

Economics | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Businesses, many of them bankrupt or saddled with excess capacity, were not hiring or expanding. Those who still had jobs had cut down their spending for fear of losing them. Those who had lost jobs had returned to their native villages, leaving 14% of the population below the government's poverty line. Unfinished high rise buildings abandoned in mid-construction, punctuated the Bangkok skyline...

Excerpts >>

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1] “Give it a chance,” www.economist.com, 28th February 2002.


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