Aec Advantage and Disadvangtage Essay

high & bao1. The positive daze of AEC to Thailand is that it helps to facilitate investment and handicraft activities in other ASEAN members as it is now more drop offly and easier. We ignore invest in any ASEAN countries and there testament be less(prenominal) barriers in terms of trading activities. Moreover, Thailand ordain be get on the center of transferral and tourism, as Thailand is located in the center of ASEAN. This will help tourism industry grow bigger. Thailand bottomland too be the center of matter conferences, meetings, exhibitions, and telecommunication. Furthermore, AEC helps Thai manufacturers reduce the cost of yield as they stool outsource cheaper raw materials from ASEAN members. AEC also helps increase the opportunities of investment as money is soft flowing among ASEAN membersbix,pamm, mew2. AEC comes with the railways development projects which will connect the Greater Mekong Sub-region, ie. East-West frugal Corridor-connecting Vietnam, Laos, Tha iland, Myanmar North-South Economic Corridor-connectingThailand, Myanmar/Laos, and China and Southern Economic Corridor-connecting Thailand, Cambodia, and Vietnam. The Southern Economic Corridor has a connecting route further to Dawei Deep Sea Port in Myanmar that can distribute products to the Middle East and Europe. This will bring down the logistic cost of Thailand that depend smuch on expensive road transportation.-http//www.scb.co.th/eic/ mendelevium/en/insight/SCB_Insight_AEC2012_EN.pdf -3. In about 2 years, we are going to be a part of AEC which we need to prepare for this situation. It is not just merely industry sector that need to prepare for the bigger market and the big amount of competitors, but the small sector want logistic is also need to be improved to get along with the intense challenger for helping companies survive from the easier track downment of goods, service, investment, capital and people. When there is a free flow of goods, service, ball-hawking lab or, etc, the infrastructure also needs to be real to serve those inflows.AEC would be a great challenge for supply set up management to manage the timing for delivering goods with more comfort adequate infrastructure which is able to reduce the cost of transportation as well, and it is a nice luck to enhance the cross hedge trade facilitation by simplified border procedures. Moreover, supporting the transportation among ASEAN countries PTT also started to set up spoil place at main roads in many member countries already. This hazard tends to generate lots of income for our nation as the high standard of PTT gas station and the well quality of service.http//www.bangkokpost.com/business/economics/284257/strengthening-supply- range of mountainss-for-the-aec http//thainews.prd.go.th/centerweb/newsen/NewsDetail?NT01_NewsID=WNFOR5509140010001 -Negative impact of AEC on supply chainNop-1. When we become a part of AEC, it has a several banish impacts on the supply chain in Thailand. Thai firms need to expand both their manufacture and inventory, in an order to take and store more goods to serve wider range of customers. As a result, it will definitely affect their fixed cost, and total cost of production will then rise respectively. Besides, the extensive concentration on manufacturing and inventory can be problematic in that it places additional pressure on the environment, which world power be a clear evidence in unwelcome impacts upon important sectors of the economy, such as tourism.Mink2. AEC will cause in a lot of crusade movement and this can be a negative impact on supply chain as well. Of course, skilled mash will move to the country that offer them a higher opportunity and higher wage, such as capital of Singapore and Malaysia. As the Thai skilled labour move out, the foreign unskilled labour might move in. The unskilled labour, who whitethorn be more wage competitive than the Thai worker, move in. This caused an disadvantage in the market and o n Thai labour as well. Also, this might depress local markets and diminish consumption of construct items.Due to a various wider customers, it will be harder for the manufacture to take a leak economy of scale. Instead of just producing one goods to server municipal market, the firms whitethorn need to come up with several creative goods to server customers who come from many country. This also can increase a cost of production for the firm. http//ejournal.som.siu.ac.th/files/1-2%20Sittichai.pdf-bix,pamm, mewThailand has relatively high logistic cost to GDP (18%) when compared with Singapore (8%) and Malaysia (13%). For Thailands overall logistic cost, the share of transportation cost is the largest. Thailand may lose its strategy to be the hub of ASEAN from the higher logistic cost comparison to other AEC countries, such as Singapore and Malaysia, if Thailands logistic infrastructures, for example, railways and highways profits that link AEC, havent been built completely in 2 015.http//www.scb.co.th/eic/doc/en/insight/SCB_Insight_AEC2012_EN.pdf -bix,pamm, mewSome labor intensive industries may die when AEC is fully integrated because of Thai marginal wage policy. The minimum wage policy will affect everyone in the supply chain both directly and indirectly. These businesses, such as food and beverage and vehicles and vehicle parts, will see higher costs for goods and services on the work of rising price of raw materials and logistics pushing through the supply chain. Moreover, the truehearted companies, which can survive, may leave Thai markets to find new bring to increase earnings and counter profit erosion from rising domestic costs. If many industries leave Thailand, the rest industries will leave also like domino falls.http//www.scbeic.com/ENG/document/insight_smes_aec_2012/