Financial Influence of the United States on Thailand
In this case, the focus will be on two countries and how they impact each other on a more global perspective. America, which is considered a world-leading economy in terms of its economic status and also its currency and on the other hand, Thailand, which is a developing country that within South East Asia. The two countries have had an increasing trade relation which can be traced the back to early 1960s and as such, any financial crisis that may impact America must have an impact on Thailand as well. In this case, this paper, which will take a literature review form will assess the financial crises that have happened in America over the years, then assess the financial perspective within Thailand and later on, determine how the financial crisis in America has impacted Thailand.
Financial Crises in America According to a study by Chen et al. In general, this financial crisis was not only felt within the United States but also within the regions that the country traded wit. According to a professor that looked at the crisis that happened within the period, he argued that “The futures market was a mess, but you could actually make good money if you were up for some risk. A lot of people tried to set up brokerage accounts to take advantage of some of the valuations” (Gali and Gambetti, 2015). In a period of two months, the market was down, and as such, this was viewed as a hindrance and a great financial crisis that impacted the country.
In addition, there was also a financial crisis that took place in 1989 that led to a great recession in the United States. The banking industry changed wholly as there was the implementation of new regulations to present a simpler business structure. Financial Crisis within Thailand Thailand, as mentioned in the introduction is a country within South East Asia and is commonly known for its various agrarian activities (Mera, 2016). Similar to any other country within the region, the financial perspective of the region heavily relies on the status of the Asian markets. Similar as to how the United States is present in the North American Trading bloc, Thailand is also present within the Asia trading bloc, and any negative impact that is faced within the region impacts the country as well.
Therefore, there has been a number of financial crisis that has happened within the country, and most of them have had great impacts on the country seeing that the country is a developing nation. The exportation to the United States increased, and as such, this meant that the country would reduce its borrowing from the international scene. In addition, a bankruptcy court was created within the country in 1999 with the role of overseeing the companies within their country and making sure that no other major financial crisis would impact the country (Harvie and Van Hoa, 2016). Relations between Thailand and the United States The major relations between the United States and Thailand can be seen in the trade activities between the two countries.
According to historians, the two country’ relations may be traced back to as early as 1818 where the two were close allies (Techakesari et al. Over the years, this has also been the case with most of Thais approving the U. In general, the trade relation within the country has been impacted greatly by the involvement with the United States as it has opened avenues for revenue and development for the country. In addition, there have been an increased peaceful relation with the country. The financial Influence of the United States to Thailand The power of the United States Dollar has been seen in a number of areas and regions. It is considered as the global common value in most regions, and for that reason, this has gained it prominence.
This is the case with the situation between the United States and Thailand. On the other hand, the United States will also greatly benefit from the interaction with Thailand. In this case, the relation will see to it that there will be extended trade routes within the region where there will be an extensive number of trade routes from Thailand and as such, it will bring in more revenue for the country. In addition, the population within the United States will have diverse goods and products to acquire and trade with. There is also the exchange of trade routes between the two countries where there will be trade and financial agreements that will benefit the two counties. In recent years, the involvement of the United States in the affairs of Thailand has been seen to increase exponentially as mentioned above.
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