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International Expansion: Singapore and Thailand

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Your firm has been investigating the possibility of locating facilities in an East Asian country such as Thailand, Malaysia, Taiwan, or Singapore. You have been asked by the chief executive officer (CEO) to research what has been happening in these countries in terms of environmental legislation and laws regarding wages and hours. He has asked you to prepare a report that addresses the following information:

> Describe the level of environmental regulation in any 2 of these countries.
> Describe the 2 selected countries' versions of wage and working-hour legislation.
Use the Library and other Internet resources to find the legislation for the specific countries.
Select 2 of the 4 East Asian countries to analyze for this assignment.
> What is the country's environmental regulation level?
> What kind of legislation has been passed in the country regarding working hours and wages?
> Do you think the country's environmental regulation is sufficient? Explain.
> Do you feel that the country's hour and wage legislation is ethical? Explain.

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Solution Summary

This solution provides country data and risk analysis for commercial expansion into Singapore and Thailand, with a concentration on environmental legislation and employment law.

Solution Preview

For comparison's sake, let's focus on two countries that might be thought of as being at opposite ends of the development spectrum: Singapore and Thailand. The information contained below addresses the following:

- Level of environmental regulation in each country
- Summary of wage and working-hour legislation for each country
- Assessment of whether the environmental regulation in each country is sufficient
- Assessment of whether the hour/wage legislation is ethical

Listed sources are publicly available websites for organizations such as the World Bank, the IMF, The CIA World Fact Book, and the governments of Singapore and Thailand. The websites are listed below. You'll need to copy/paste the URLs below into your browser address window if they do not automatically turn into links.

GOVERNMENT OF SINGAPORE
http://www.gov.sg/government/web/content/govsg/classic/home

GOVERNMENT OF THAILAND
http://www.mfa.go.th/web/2418.php

WORLD BANK - SINGAPORE
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/SINGAPOREEXTN/0,,menuPK:272837~pagePK:141159~piPK:141110~theSitePK:272832,00.html

WORLD BANK - THAILAND
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/THAILANDEXTN/0,,menuPK:333302~pagePK:141159~piPK:141110~theSitePK:333296,00.html

IMF - SINGAPORE
http://www.imf.org/external/country/SGP/index.htm

IMF - THAILAND
http://www.imf.org/external/country/THA/index.htm

CIA WORLD FACT BOOK - SINGAPORE
https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html

CIA WORLD FACT BOOK - THAILAND
https://www.cia.gov/library/publications/the-world-factbook/geos/th.html

Using information from a variety of sources allows a detailed comparison of what the governments of each country say about the issues of interest, to what the US and external international organizations say about those same governments.

GOVERNMENT OF SINGAPORE ENVIRONMENTAL REGULATION
Browse to the "Information and Policies" section, then follow the "Environment" link.

The Singapore Green Plan 2012 (SGP2012) (downloadable document)

"There are six focus areas under the SGP2012: (i) Clean Air & Climate Change, (ii) Water, (iii) Waste Management, (iv) Public Health, (v) Conserving Nature, and (vi) International Environmental Relations. With the announcement of Singapore's plan to accede to the Kyoto Protocol in 2006, the NEEC has been expanded in scope to cover climate change issues and has been renamed the National Climate Change Committee (NCCC) to better reflect its expanded function. Singapore's commitment to climate change is consistent with our good record on environmental issues. Singapore has been a signatory to the UN Framework Convention on Climate Change (UNFCCC) since 1997 and acceded to the Kyoto Protocol (KP) of the UNFCCC on 12 Apr 2006. Singapore's National Climate Change Strategy (NCCS) represents Singapore's comprehensive and holistic response to climate change: National Climate Change Strategy. Singapore seeks to intensify collaboration with our international partners in the following area: a) Partner with international organizations in hosting premier environmental events in Singapore, b)Promote Singapore as a hub for Environmental Innovation and Technology. Singapore continues to work closely with our ASEAN neighbors in programs such as the ASEAN Initiative on Environmentally Sustainable Cities (AIESC) and ASEAN Agreement on Transboundary Haze Pollution."

ANALYSIS: SINGAPORE plans to accede and abide by the Kyoto Protocol of 2006, which is something even the US has failed to do. Singapore's government is fully engaged in meeting the environmental challenges of clean, renewable energy, energy efficiency and in mitigating the harmful effects of energy on the environment through education, awareness and public programs. The have even allocated money in their national budget to train "energy managers". They have defined an energy policy at the governmental level, which something the US has yet to do.

GOVERNMENT OF THAILAND

The portion of the website that has been translated into English is much reduced from the overall website. Thus you will not see references to Thailand's environmental policies from the Thai government itself.)

CIA WORLD FACT BOOK - THAILAND,
"The following environmental issues are facing Thailand:
air pollution from vehicle emissions; water pollution from organic and factory wastes; deforestation; soil erosion; wildlife populations threatened by illegal hunting. Thailand is party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Marine Life Conservation, Ozone Layer Protection, Tropical Timber 83, Tropical Timber 94, Wetlands; signed, but not ratified: Law of the Sea.

"Thailand is studying the feasibility of jointly constructing the Hatgyi Dam on the Salween river near the border with Burma; in 2004, international environmentalist pressure prompted China to halt construction of 13 dams on the Salween River that flows through China, Burma, and Thailand."

WORLD BANK COUNTRY BRIEF:
"In addition, urban, industrial as well as tourism development has put Thailand's marine and coastal resources at great risk. A recent World Bank environmental report pointed out that coastal erosion is a major issue and with the climate change ...

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