It is important to note that an international expansion for a business is an intricate and multifaceted process, which requires conducting a great deal of analysis of possible destinations. The latter statement is especially true when the country of origin differs massively from the nation of interest, such as US-based business considering India or Thailand. These countries are distinct from the United States on many levels, such as culture, market, government, politics, and consumer preferences. Therefore, a properly targeted and comprehensive assessment of the two nations needs to be done in order to make a conclusive recommendation for a new manufacturing facility.
In the case of sustainability measures and environmental regulation, Thailand has better and stricter regulations, which are reflected in these nations’ performance in this regard. According to Environmental Performance Index EPI, Thailand is ranked 121, whereas India’s rank is 177, which accounts for power sources, waste utilization, and pollution (Huang & Xu, 2019). In addition, Thailand is gradually climbing up the ranking among Asian nations, whereas India shows a sign of a decrease. Therefore, since a US-based business needs to be interested in more environment-friendly means of production due to US regulations as well as consumer awareness, Thailand is a better option.
When it comes to cost and workforce, Thailand also has the upper hand over India. It is reported that labor costs reflected in minimum wages are higher in Thailand than in India, where 2013 estimates reveal the numbers to be $253 and $51, respectively (“Country comparison India vs. Thailand,” 2020). Therefore, it will be more expensive to open a new manufacturing facility in Thailand compared to India. In addition, workers in Thailand are more educated than Indian ones, which is reflected in literacy rate, compulsory education duration, high school enrollment rate, higher education enrollment, and other factors (“Education stats,” 2022). Considering the fact that the manufacturing facility is interested in the creation and development of computer components, education and availability of a specific set of workers are of paramount importance. Therefore, Thailand, despite its higher minimum wages, is a better alternative since it is likely that the hired specialists will be paid above the minimum wage anyway.
For government regulation, Thailand’s government is stricter than the Indian one, where the mode of entry is more challenging for US-based businesses. It should be noted that labor regulations and business regulations are also better enforced and monitored in Thailand (Huang & Xu, 2019). In the case of intellectual property, both nations have a high risk of intellectual property being stolen by creating a manufacturing location in each country. However, comparatively, Thailand seems to be better due to stricter enforcement of the laws. When it comes to reputation, it is difficult to pinpoint which nation will be perceived better by customers, but Thailand is a better-developed nation than India, which is well-known due to a lower corruption index, higher GDP per capita, and various rankings and rating (“Country comparison India vs. Thailand,”). The superiority of Thailand on many stats serves as a basis for its perceived reputation by customers, who will most likely view Thailand more favorably than India.
In conclusion, the core recommendation for the US-based business of interest is to choose Thailand for its opening manufacturing facility. Thailand outperforms India in many aspects, and the higher minimum wage of the nation should not be a problem since the facility will require high-skilled workers for the production of computer parts. The regulations and enforcement of essential laws are better in Thailand, which will better resonate with US-based businesses.
References
Country comparison India vs. Thailand. (2020). Web.
Education stats: Compare key data on India & Thailand. (2022). Web.
Huang, B., & Xu, Y. (2019). Environmental performance in Asia: Overview, drivers, and policy implications. Asian Development Bank Institute, 990, 1-17. Web.