Internationalization Factors of Thai Multinationals and Thailand's Bilateral Trade Policy

Abstract

This article investigates the impact of Thailand's recent bilateral free-trade agreements (FTAs) on the internationalization of Thai multinational enterprises (MNEs). The results highlight the relative importance of internal and external factors in the internationalization of developing country MNEs. The empirical evidence indicated that Thai MNEs judged bilateral FTAs as a critical facilitator of internationalization success. The FTAs facilitated firms' exports to a certain degree and marginally expedited firms' international purchasing activities. The influence of FTAs on firms' foreign investment was not discernible.

Keywords:

• internationalization
• multinational enterprises
• FTAs

Notes

1. Nine out of 10 case firms.

2. Eight out of 10 case firms.

3. Eight out of 10 case firms.

4. Six out of 10 case firms.

5. See Table 4 for Thai MNEs' firm sizes.

6. for example, Companies A and I.