. There are various factors that affect the country on attracting multinational corporations. First of all according to Dunning, said that the location advantages of different countries are keys in determining which will become host countries for the multinational firms. In accordance with the observation, it shows the result with the same direction to the theory of Dunning. Therefore, as for Thailand with advantage of the good geographical location. Thailand become the ASEAN’s largest production base in the electrical appliances sector, and is the world’s 2nd largest producer of air conditioning units and 4th largest producer of refrigerators in 2011.
- Second, according to Dunning mentioned that the relative attractiveness of various location factors can change over time, differentiate the factors into three type of location factors according to: Economic advantages: Consist of the quantities and qualities of the factors of production, transport and telecommunications costs, and so on. In case of observation, it shows that with the good transportation system in 2011, the electrical and electronics industry contributed almost 24% of Thailand’s annual export revenues, generating US$55 billion. Hence, transportation system could be another factor which influences foreign companies’ investment.
- Third, the attractiveness depends on the factors of location in particular in term of infrastructure, education, labor cost and productivity, stability but also of geographical factors according to Michalet statement. In case of the result from observation with those factors, now Thailand is ranked as the world’s number #1 HDD and components manufacturing base, commanding 40%-45% share of the Thailand is ranked as the world’s number #1 HDD and components manufacturing base, commanding 40%-45% share of the worldwide HDD production, in 2011.
- Lastly, Political advantages: include the common and specific government policies that influence inwards Foreign Direct Investment flows, intra-firm trade and international production according to Dunning statement. In the event of observation, it afford the same direction with Dunning’s, after financial crisis of Thailand in 1997 the government cut the corporate tax rate from to 30% to 20%. With this tax rate it is below than other countries in the same region such as, Vietnam, Malaysia, and Indonesia. Therefore, that’s why now Thailand manufacturing expanded continuously for almost three decades. Consequently, the government policy able to attract numerous factories across the countries to come to invest in Thailand.