The objective of this study is to investigate the behavioral adjustments, inproduction and marketing, of the Thai garment manufacturers and some basic governmentpolicies related with the issue during the period 1992-1997. The study looked at theadjustment capacity during the economic downturn and the producer's adjustmentbehavior in response to the liberalization of textile trade according the rules andregulations imposed by the World Trade Organization. The study also touched on theproduction and market restrictions which linked to the behavioral adjustment. It wasbased on the Simple Random Sampling of members of the Thai Garment ManufacturersAssociation. For production adjustment, it was found that both large and small sizeproducers emphasized, firstly, adjustment in personnel followed by adjustment in rawmaterials and machinery, respectively. The medium size producers emphasized more onthe adjustment in personnel and raw materials. For market adjustment, all of theproducers emphasized protection of its domestic market as well as expansion of theforeign market. For the aspect of basic industrial infrastructure, the large producesobtained more government assistance than the medium and small size produces throughreductions of import tariffs on raw materials and machineries. For the impact of restrictions on production and marketing, it was found that,the most significant restrictions for large and small size produces were exchangerate followed by raw materials, while the financial restrictions was important formedium size produces. The least important restrictive factor for all produces was thebasic infrastructure, i.e. water supply, electricity and transportation. For marketrestrictions, it was found that quality restrictions produced more problem for mediumand small size produces, while the restrictions on information produced the leastproblem. The large produces faced more problems related with trade restrictions whilethey were facing less problem with quality. The large produces emphasized most on the production adjustment while themedium and small producers emphasized most on market adjustment. All of them gave theleast attention to basic industrial infrastructure.