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Problem of Production And Marketing of Thai Artificial Flowers For Export
No full textThailand's total export value of artificial flowers is comparatively high, especially during the past 6-7 years. However, since 1989, the US GSP granted for hand-made artificial flowers from Thailand has been terminated. Such GSP termination has caused serious impacts on the export of artificial flowers of Thailand because of the 17% higher rate of tariff. Furthermore, wages have increased, and also, the people Republic of China, due to its advantages of lower production cost and lower wages, began to play an important role in exporting artificial flowers to foreign markets such as U.S.A., Canada, and West-Germany. Thus,the artificial flower business of Thailand is facing many problems. The objectives of this study are to analyse the situation of production and marketing of artificial flowers of Thailand,and to find out solutions for some concerning problems. The primary data used in this study are mostly obtained from interviews of 23 companies engaged in the production and export of artificial flowers: all of them have investment promotion certificates from the government and are still in this business. For secondary data, their sources are from various government offices,such as the Department of Customs, the Ministry of Finance, and the Bank of Thailand. The analysis shows that major problems of production are the increasing cost of production due to the higher prices of raw materials, as well as skilled labor shortage. With regard to marketing, it is found that the export of artificial flowers from Thailand depends upon only one major market, i.e., the U.S.A. market, the export value to U.S.A. market being approximately 80% of the total export value from Thailand. Another problem is that the selling price of this commodity has been forced to increase in accordance with the increasing cost of production. This is an important factor to hinder market expansion. Furthermore, in order to ascertain the conclusion, the result of statistical analysis indicates that the export price affects the demand from foreign countries. On the contrary, looking from the supply side, export price is not a significant factor to stimulate manufacturers to increase their production. The analysis also reveals that the competitors of Thailand in the export of artificial flowers to the U.S.A.market do not lessen the US demand from Thailand, since the demand of this commodity still exceed the supply. As to methods of production, the analysis shows that manufacturers are likely to replace human labor with machines in some possible steps of production because the production elasticity of machine is higher than of human labor. Recommendations to solve these problems are as follows. The manufacturers and the government sector should support exporters by improving infrastructure to facilitate large freigters to ship cargo. Also, a rebate of import tariff of raw materials to the manufactures is necessary, so that they could improve their capital circulation
Problem of Production And Marketing of Thai Artificial Flowers For Export
No full textThailand's total export value of artificial flowers is comparatively high, especially during the past 6-7 years. However, since 1989, the US GSP granted for hand-made artificial flowers from Thailand has been terminated. Such GSP termination has caused serious impacts on the export of artificial flowers of Thailand because of the 17% higher rate of tariff. Furthermore, wages have increased, and also, the people Republic of China, due to its advantages of lower production cost and lower wages, began to play an important role in exporting artificial flowers to foreign markets such as U.S.A., Canada, and West-Germany. Thus,the artificial flower business of Thailand is facing many problems. The objectives of this study are to analyse the situation of production and marketing of artificial flowers of Thailand,and to find out solutions for some concerning problems. The primary data used in this study are mostly obtained from interviews of 23 companies engaged in the production and export of artificial flowers: all of them have investment promotion certificates from the government and are still in this business. For secondary data, their sources are from various government offices,such as the Department of Customs, the Ministry of Finance, and the Bank of Thailand. The analysis shows that major problems of production are the increasing cost of production due to the higher prices of raw materials, as well as skilled labor shortage. With regard to marketing, it is found that the export of artificial flowers from Thailand depends upon only one major market, i.e., the U.S.A. market, the export value to U.S.A. market being approximately 80% of the total export value from Thailand. Another problem is that the selling price of this commodity has been forced to increase in accordance with the increasing cost of production. This is an important factor to hinder market expansion. Furthermore, in order to ascertain the conclusion, the result of statistical analysis indicates that the export price affects the demand from foreign countries. On the contrary, looking from the supply side, export price is not a significant factor to stimulate manufacturers to increase their production. The analysis also reveals that the competitors of Thailand in the export of artificial flowers to the U.S.A.market do not lessen the US demand from Thailand, since the demand of this commodity still exceed the supply. As to methods of production, the analysis shows that manufacturers are likely to replace human labor with machines in some possible steps of production because the production elasticity of machine is higher than of human labor. Recommendations to solve these problems are as follows. The manufacturers and the government sector should support exporters by improving infrastructure to facilitate large freigters to ship cargo. Also, a rebate of import tariff of raw materials to the manufactures is necessary, so that they could improve their capital circulation
