1. How and why does the risk of moving a business to Thailand differ from moving the same business to Louisiana?
Moving a business to Thailand exposes more risks in operation than if the same business was to be moved to Louisiana. Apparently, Thai’s are reluctant to talk business issues with foreigners, as opposed to Louisiana’s. This cultural behavior may hinder building capacity relationships with the competitors, which are necessities for business performance. Thailand’s economy has been lagging behind for the last decade as a result of increased population and a high regard on the cultures that include language stiffness (Park, Dillon and Mitchell, 2010). This makes is hard for communication in business. Introduction of the modern means of communication and technology in the country has a limitation on the levels of education amongst the population. Globalization attributes to the use of modern technology in production and marketing. This is well implemented in Louisiana as compared to Thailand. Most production, service and manufacturing businesses in Louisiana recognize the need to adapt to the modern technology to satisfy the needs of the population. The overreliance on exports in Thailand reduces the need of absorbing the technology (Goldin and Reinert, 2007). This may pose a risk in shifting a business to such an environment.
2. What additional risk might be found in Louisiana that would not be present in Thailand?
Louisiana is better positioned on consideration to technology and economic performance. However, the country is limited on its legal procedures when it comes to competing businesses. The country allows the use of DBA (Doing Business AS) policy. This involves businesses operating without having to create an entirely new business entity. This means that many businesses are operational under this policy and somehow impose unnecessary competition in the market (Park, Dillon and Mitchell, 2010). In comparison to Thailand proper legal procedures which involve the acquisition of business entities before they become operational, is adhered. This limits the extent of illegal businesses and unnecessary competition from unregistered businesses.
Reference.
Goldin, I. & Reinert, K. (2007). Globalization for Development: Trade, Finance, Aid, Migration, and Policy. World Bank: Washington, DC.
Park, M., Dillon, W. & Mitchell, K. (2010). Korean Business Letters: Strategies for Effective Complaints in Cross-Cultural Communication. The Journal of Business Communication, Vol. 35(2), p. 37-56.
