8. Global War World Power Delegitimation Challenger 1491-1516 Italian and Indian Ocean Wars 1516-1539 Portugal 1540- 1560 1560-1580 Spain 1580-1609 Spanish-Dutch Wars 1609-1639 Netherlands 1640-1660 1660-1688 France 1688-1713 Wars of Louis XIV 1714-1739 Britain I 1740-1763 1764-1792 France 1792-1815 Wars of French Revolution and Napoleon 1815-1849 Britain II 1850-1873 1874-1914 Germany 1914-1945 World Wars I&II 1945-1973 United States 1973-2000 2000-2030 Soviet Union Globalization of Nation-States
9. Globalization of Companies Source: Stanley Hoffmann The concern for global competitiveness limits the aptitude of states and other actors to address this problems Issues The logic of pure capitalism does not favor social justice Become a formidable cause of inequality among and within states The specialization and integration of firms make it poss ible to increase aggregate wealth Thrusts 46 of the largest 100 economies of the world today are companies, not countries
15. Internationalization of Thai People are Ranked Lower than Malaysia and Singapore 2001 2002 2003 2004 2005 Thailand China Singapore Malaysia Philippines Indonesia 30 57 47 48 46 48 53 51 57 54 1 3 4 2 1 20 20 18 20 19 34 52 52 33 32 38 59 58 59 60 Source: A.T.Kearney /Foreign Policy Magazine Globalization Index (64 Countries) Globalization Index Ranking
16. Developing Country MNCs (in Top 50) Hong Kong Korea China Taiwan India ASEAN 9 6 6 2 1 7 Source: UNCTAD 1999:11 No single Thai company was ranked in top 50 developing country MNCs.
17. Overall Infrastructure Quality Railroad Infrastructure Development General Infrastructure is still not ready to support the growth Port Infrastructure Quality Air Transport Infrastructure Quality Quality of Electricity Support Telephone Infrastructure Quality Postal Efficiency 29 (4.9) 38 (3.7) 36 (4.5) 20 (5.6) 41 (5.3) 41 (6.1) 38 (5.1) Rank/Score Mean Top Rank/Score 3.9 3.1 3.9 4.5 4.6 5.2 4.4 Singapore (6.8) Switzerland (6.7) Singapore (6.8) Singapore (6.9) Iceland (7.0) Finland (6.9) Iceland (6.9)
18. Technological Sophistication Firm Level Technology Absorption Quality of Scientific Research Institution Company Spending on R&D University/Industry Research Collaboration Availability of Scientists and Engineers Technology and innovation is behind that of other top leaders 36 (4.1) 30 (5.2) 43 (4.2) 36 (3.6) 25 (4.0) 63 (4.4) Rank (Score) Mean Top Rank (Score) 3.7 4.9 4.0 3.4 3.3 4.7 Finland (6.6) Finland (6.4) USA (6.2) USA (5.9) Finland (5.9) Israel (6.5)
19. Quality of the Education System Quality of Math and Science Education Disparity in Health care Quality Brain Drain Human resources skill level still below the market leading in many areas 41 (3.8) 42 (4.5) 43 (3.0) 12 (5.0) 3.5 4.1 3.0 3.5 Finland (6.0) Singapore (6.5) Iceland (6.6) USA (6.3) Rank (Score) Mean Top Rank (Score)
20. Nature of Competitive Advantage Value Chain Presence Comparison of Thailand corporate operation & strategy vs. that of global firms illustrates that Thai companies still lack behind in many capacity areas Extent of Branding Capacity of Innovation Ethical Behavior of Firms Extent of Marketing Control of International Distribution 34 (3.5) 39 (4.0) 37 (3.6) 48 (3.2) 42 (4.3) 33 (4.8) 51 (3.8) Rank/Score Mean Top Rank/Score 3.5 3.8 3.5 3.5 4.3 4.2 3.9 Japan (6.3) Finland (6.4) Germany (6.5) Finland (6.1) Finland (6.5) USA (6.3) France (5.7)
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22. 0 100 , 000 200 , 000 300 , 000 400 , 000 500 , 000 600 , 000 0 50 , 000 100 , 000 150 , 000 200 , 000 250 , 000 300 , 000 350 , 000 400 , 000 GPP (Million Baht) GPP/Capita (Baht) GPP vs Per Capita GPP Remark: not including BKK A wide gap of wealth exists among 76 provinces
27. Global-local collaborative network would enhance competitiveness of the locals Global Network Local Network CEO Governor CEO Ambassador CEO Perm Secretary Global Competitiveness Local Competitiveness Local Link Global Reach
31. Lesson Learned: Asian Financial Crisis Real Sector Public Sector Financial Sector Citizen Sector Attacked by Hedging Funds Unemployment Social Unrest Political Instability Bankruptcy Credit Crunch Collapse of Financial Institutions Thailand Indonesia Korea Argentina Etc. Capital Outflow
40. Roots of Thailand’s Competitive Advantage Cultural Diversity Thai Boxing Bio-Diversity Thai Fruits Tourism Thai Movie OTOP Thai Cuisine X
41. OTOP Tourism Target Villages Bridging Local Wisdom with Global Opportunities Tea Mae Salong Nok Chiangrai Woodcraft Ban Tawai - Wiangkumkam Chiangmai Pottery Dan Gwian Nakornrachsrima Pottery Ban Chiang Uthornthani Pottery Ban Mon – Koh Kred Nonthaburi Jewelry Bang Sa Kao –Vegetable Garden Chanburi Flower for Para rubber leaf Ban Takuapa Phanga Batik clothes Ban Kiriwong Nakornsritummarat Product from Bamboo Ban Wad Yang Thong OngThong Jewelry Mae Sod Trak Pottery Chiang Sen Chiangrai Product Village Provinces
42.
43. Buy Make High Low Potential Value Creation Balance Industry Bases Endowment-based FDI-based e.g. Agro-industry Internationalization e.g. Electronics Seeds, Agro-machinery Food industry, Branding Joint-Venture, ASEAN linkages Own brands R&D, Design International Division of Labor e.g. Business Process Outsourcing
47. Economic Reform Macro Restructuring Industry Restructuring Corporate Restructuring Policy Implications Driving Forces Building a Sustained High Performance Economy Social Reform Political Reform Sufficiency Economy Globalization Localization High Performance Economy
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