Thailand's Political and Legal External Macroenvironmental Forces

To reach the highest level of success, a firm must be able to adapt to the external macroenvironmental forces and combine it with the internal forces most efficiently. Due to the fact that the organization is not able to control the external forces, it is very vital to be informed of all the necessary information available on the topic. One of the very important factors would have to be the Political and Legal Forces. Within the Political and Legal Forces of the macroenvironmental forces are four categories:

1. Monetary and fiscal policies. (level of government spending, the money supply, and tax legislation)

2. Social legislation and regulations. (environmental laws)

3. Governmental relationships with industries.

4. Legislation related specifically to marketing. (laws regulating competition and to protect consumers)

Thailand is a mixed economy where government has some but little invol

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Due to the past few years of Thailand's financial crisis, the government was in debt to the IMF (International Monetary Fund) and is now paying the loan.

Although external macroenvironmental forces do not only rely on one factor, it is important to understand each and individual force to be able to manage the firm more effectively. The Copyrights Act protects literary, artistic works and performance right by making it unlawful to reproduce or publish such work without owner's permission. A change in one of them can cause changes in others. Ability to be able to control these external forces at the right time can be extremely useful and ensure a higher level of the firm's success.

Thai government also gives importance to the three property rights. Foundations and associations pay income tax at two to ten percent of gross business income, depending upon the nature of their business activity.

The taxation of doing business in Thailand includes corporate income tax, value added tax (VAT), and personal income tax. However, for foreign companies that have not registered will only have to pay income tax for the revenue deriving from the sources in Thailand. Therefore, the government set up the Pollution Control Department to make necessary regulations to control the possible results of organizations' neglecting to be 'environmental friendly'. All companies that registered under Thai law will have to follow the taxation described above. Legislation such as The National Environmental Quality Act (prevention of possible pollution), The Factories Act (standards and methods to disposing waste), The Hazardous Substances Act (hazardous substances control), and The Public Cleansing Act B. Value added at every stage of the production process is taxed at the rate of seven percent. Personal income tax is as follows:

Personal Income Tax

Annual Income (in baht) Tax Rate

0 - 100,000 5%

100,001 - 500,000 10%

500,001 - 1,000,000 20%

1,000,000 - 4,000,000 30%

4,000,000 - over 37%

Often times that some industrial activities cause danger to the environment.

Approximate Word count = 612
Approximate Pages = 2 (250 words per page double spaced)

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