A Study on Trade and Investment Risk Assessment of Thai Firms in Foreign Markets

Abstract

This study investigates the trade and investment risks faced by Thai firms operating in foreign
markets and examines their impact on firm performance. A quantitative survey was conducted
with 400 Thai companies engaged in cross-border trade and investment, including SMEs and
large enterprises. The findings reveal that political and regulatory risks are the most critical,
followed by currency and market risks, while operational risks have a moderate impact.
Regression analysis indicates that higher exposure to these risks significantly reduces firm
performance, including profitability, market share, and brand reputation. Moreover, the study
finds that internal firm capabilities, such as managerial international experience and firm size,
play a moderating role, mitigating the negative effects of external risks. Firms implementing
structured risk assessment frameworks report better performance, emphasizing the practical
importance of systematic evaluation and proactive management. This research contributes
theoretically by extending understanding of international business risk assessment in emerging
economies, particularly in the Thai context, and provides practical insights for managers and
policymakers to enhance decision-making and sustainable growth in global markets.