Globalization of production has increased the productive efficiency of manufacturing firms because they are able to decompose their value chain into individual components or parts, and then outsource their production to different locations where these components can be produced most efficiently. Also it has lead to increasing worldwide integration of markets for goods, services, and capital.
In this case the advantages and challenges of investing in different market are as follows :
For US – Advantages will be access to high skilled talent , technology and very large economy and market . Challenge will be highly competitive market and high cost market. Cost of doing business will be high.
For Thailland – Advantages will be access to low cost labor , ability to enter into Asian market , and timezone favourable to Austalian time.
Challenges will be transparency on govnermnt policies , challenges in capital movement , repatriation and very limited talented pool.
Given the globalization of the world economy, most large companies depend heavily on their foreign operations ,for example, by some estimates about 40 percent of S&P 500 Index earnings are from outside the United States. Almost all companies are exposed to some degree of foreign competition, and the pricing for domestic assets—equities, bonds, real estate, and others—will also depend on demand from foreign investors. All of these various influences on investment performance reflect developments in the foreign exchange market.
So it is inevitable that the Australian company diversify operations and slowly get used to doing business at the global level.