User talk:Phingxx

How Free Trade would benefit Thailand, with reference to a particular business

Each country has different ability to produce specific goods. If there were no international trade, people in each country would have to produce everything within their country. It would take them a lot of time, effort, resources and money to manufacture the objects that could probably be produced more easily and effectively elsewhere. Fortunately, we can choose to create things by ourselves or to buy them from abroad. In order to promote free market, free trade was created.

Free trade is an agreement between two or more countries to remove or reduce taxes, subsidies,tariffs, quotas, legislation and preferences on products and services imported and exported between them. Thailand is one of the countries that has signed free trade agreements with various countries such as Japan, China, Korea, India, Australia, New Zealand, Peru and so on. Thai government decided to sign the free trade agreements as it saw the benefits the kingdom would get from them.

First of all, free trade area allows Thailand to expand its market. Thailand sometimes has too many goods to be consumed within the country. It’s a good idea to export them. As an example, a lot of Thai fruit farmers benefited significantly from the FTA pact between Thailand and China implemented in 2004. The number of Thai longans exported to China was seven times larger than that of 2003. Furthermore, exports of durians went up from 9,376 tones in 2003 to 76,700 tones in 2004. The more Thai fruits sold mean the more income and the better standard of living Thai farmers will get.

Next, free trade would enhance foreign investment in Thailand. FTA attracts overseas companies to invest in Thailand because it eliminates some laws and regulations that restrict foreign investment.. As a consequence, Thai people would have more career opportunities and Thailand would have more cash flow in its economics.

The other advantage Thailand would take from free trade is the ease of importing goods that cannot be domestically manufactured or that cost less to import from other countries such as crude oil, refined oil, natural gas, some machinery and some pharmaceutical products. Thai consumers can buy goods at lower prices.

Thailand should support free trade because it helps the country increase sales, augments foreigner investment, reduces cost of imported goods and services, reflects the true demand and supply without government intervention, makes manufacturers improve their products to be competitive and provides consumers with a variety of options.