Thailand as the Production Base and the Strategies of Japanese Companies -the Vision of the Great Asian Distribution Center

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We recognize the importance of Thailand as the production base to the Japanese manufacturers and as the worldwide supplier. While improving the East-West Economic Corridor in Indochina peninsula and AFTA accelerating industrial cluster and reducing the logistic cost, the flood in 2011 revealed Thailand still have the issues to be the great production-distribution center. If the Japanese-style manufacture has being established in Thailand, the multiplier effect on Japan would come down. However, we show that it must be significant for the manufacturers in the world to keep the original technological development in Japan, and that there are highly production inducement effects on Japanese economy by that.