Aec Advantage and Disadvangtage Essay

high & bao1. The positive impact of AEC to siamese connectionland is that it helps to allay enthronization and trading activities in otherwisewise ASEAN components as it is now more broadly and easier. We tail invest in all ASEAN countries and there give be less(prenominal) barriers in terms of trading activities. Moreover, Thailand give become the center field of expat and tourism, as Thailand is located in the center of ASEAN. This result help tourism industry originate bigger. Thailand fecal matter to a fault be the center of landal conferences, meetings, exhibitions, and telecommunication. Furthermore, AEC helps Thai underframeulaters reduce the represent of production as they can outsource cheaper raw materials from ASEAN members. AEC also helps increase the opportunities of investment as money is easily catamenia among ASEAN membersbix,pamm, miaul2. AEC comes with the railways development projects which will consociate the Greater Mekong Sub-region, ie. E ast-West scotch Corridor-connecting Vietnam, Laos, Thailand, Myanmar North-South Economic Corridor-connectingThailand, Myanmar/Laos, and chinaware and Southern Economic Corridor-connecting Thailand, Cambodia, and Vietnam. The Southern Economic Corridor has a connecting route further to Dawei cloudy Sea Port in Myanmar that can distribute products to the Middle East and Europe. This will bring down the logistical salute of Thailand that depend smuch on expensive itinerary transportation.-http//www.scb.co.th/eic/doc/en/insight/SCB_Insight_AEC2012_EN.pdf -3. In about 2 years, we are press release to be a part of AEC which we exact to break for this situation. It is not honorable only industry sector that need to prepare for the bigger grocery and the larger sum of competitors, but the small sector homogeneous logistic is also need to be improved to get along with the thick competition for helping companies survive from the easier impulsion of goods, service, investment, capital and people. When there is a free flow of goods, service, skilled labor, etc, the foundation also needs to be developed to coiffure those inflows.AEC would be a great quarrel for come forth chain administerment to manage the timing for delivering goods with more comfortable infrastructure which is able to reduce the toll of transportation as well, and it is a nice prospect to enhance the cross border conduct facilitation by simplified border procedures. Moreover, financial support the transportation among ASEAN countries PTT also started to set up bollix up stations at briny roads in many a(prenominal) member countries already. This opportunity tends to generate lots of income for our nation as the high standard of PTT gas station and the well quality of service.http//www.bangkokpost.com/ care/economics/284257/strengthening-supply-chains-for-the-aec http//thainews.prd.go.th/centerweb/newsen/NewsDetail?NT01_NewsID=WNFOR5509140010001 -Negative impact of AEC on suppl y chainNop-1. When we become a part of AEC, it has a several(prenominal) cast out impacts on the supply chain in Thailand. Thai firms need to expand twain their manufacture and scroll, in an order to pay off and store more goods to serve wider tramp of customers. As a result, it will unquestionably affect their fixed cost, and total cost of production will then enhance respectively. Besides, the extensive concentration on manufacturing and inventory can be problematic in that it places additional pressure on the environment, which tycoon be a clear severalise in unwelcome impacts upon important sectors of the economy, such(prenominal) as tourism.Mink2. AEC will causality in a lot of work break downment and this can be a negative impact on supply chain as well. Of course, skilled labour will move to the country that cater them a high(prenominal)(prenominal) opportunity and higher engross, such as Singapore and Malaysia. As the Thai skilled labour move out, the foreign unskilled labour capacity move in. The unskilled labour, who whitethorn be more wage competitive than the Thai worker, move in. This caused an disadvantage in the market and on Thai labour as well. Also, this might depress local markets and strike consumption of manufactured items.Due to a various wider customers, it will be harder for the manufacture to reach economy of scale. Instead of just producing one goods to server domestic market, the firms may need to come up with several creative goods to server customers who come from many country. This also can increase a cost of production for the firm. http//ejournal.som.siu.ac.th/files/1-2%20Sittichai.pdf-bix,pamm, mewThailand has relatively high logistic cost to gross domestic product (18%) when compared with Singapore (8%) and Malaysia (13%). For Thailands overall logistic cost, the share of transportation cost is the largest. Thailand may lose its strategy to be the hub of ASEAN from the higher logistic cost comparing to othe r AEC countries, such as Singapore and Malaysia, if Thailands logistic infrastructures, for example, railways and highways network that link AEC, oasist been built completely in 2015.http//www.scb.co.th/eic/doc/en/insight/SCB_Insight_AEC2012_EN.pdf -bix,pamm, mewSome labor intensive industries may die when AEC is fully integrated because of Thai minimum wage policy. The minimum wage policy will affect everyone in the supply chain both outright and indirectly. These businesses, such as food and drink and vehicles and vehicle parts, will see higher costs for goods and services on the form of rise price of raw materials and logistics button through the supply chain. Moreover, the strong companies, which can survive, may leave Thai markets to have new channels to increase payment and counter profit erosion from rising domestic costs. If many industries leave Thailand, the rilievo industries will leave also want domino falls.http//www.scbeic.com/ENG/document/insight_smes_aec_201 2/