Trade Development In Natural Rubber Between Thailand And People's Republic Of China

Since the year 2000, natural rubber has become the number one trade commodity between Thailand and People's Republic of China. Thailand has become the number one supplier of natural rubber since. About 90% of natural rubber products produced in Thailand is exported, 70% of that is exported to China. Even though trade development in natural rubber between Thailand and China is in advance stage, and Thailand natural rubber still has the largest share in Chinese market, there are still some problems that hinder the trade development not to advance as much as it should be. The question here how to make this natural trade between the two countries becomes stronger. Corporate and push forward the trade development to be productive efficiently and maintain the liquidity level of the natural rubber trade to move forward, are the major factors in doing the analysis. This thesis will begin from introducing and analyzing the current natural rubber trade situation between Thailand and China. Then it will point out the development in the natural rubber industry both in Thailand and China. After that, this thesis will analyze the production, the consumption, the import and export, and the future of natural rubber for both countries. Later, this thesis will analyze the natural rubber trade problems and causes between the two countries. And finally, it will summarize and introduce the way to handle and solve the problems mentioned above.This thesis will separate into five major parts. The first part will introduce and describe the current natural rubber trade situation between Thailand and China. It also analyzes the conditions and the changes of three major natural rubber products exported from Thailand to China. The last portion will analyze the future and the trend of Thai's natural rubber products in the Chinese's natural rubber market.The second part will describe the production, the consumption, especially the natural rubber product transformation of Thailand, and also the major export markets of Thai's natural rubber products. Then, it will analyze Thailand's most important export competitor of natural rubber products, Indonesia, by using RevealedComparative Advantage (RCA) in analyzing comparative advantage and competition in international markets. The result of the RCA analysis shows that Indonesia has advantages over Thailand in costs of production and export prices. However, Thailand has some advantages over Indonesia in terms of unit of production and product quality. Therefore, it tends to be a fierce competition in the international rubber market.The third part will describe and analyze the production, the consumption, and the import of natural rubber market by China. It will concentrate on the major import markets of China. It will also analyze the condition and the development of Chinese's natural rubber product market.The forth part, from the analysis throughout this thesis, will summarize the problems and causes occurred of the natural rubber trade between the two countries.Finally, this thesis will attempt to explain how to develop and expand the natural rubber trade between Thailand and People's Republic of China. It will also try to recommend how to handle and solve all the problems occurred in the natural rubber trade between the two countries.