How Malaysia Has Benefit From The International Trade Economics Essay
Disclaimer: This work has been submitted by a student. This is not an example of the work written by our professional academic writers. You can view samples of our professional work here.
Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.
Published: Mon, 5 Dec 2016
Recent years international trade has played a important role to most of the countries . It has connected every country together provided a considerable profits to them . To the international trade , it contains two main parts ———–import and export .
Exporting is the selling of products or services supplied from one’s own country for use in other countries . By contrast , importing buying of products made in other countries for use in one’s country . They are the basic element of the international trade .
Among all the countries , Malaysia has benefit a lot from international trade in terms of life , work , house , health and so on . It has improved the economic development totally and made Malaysia much more beautiful .
CHANGE IN CONSUMPTION PATTERN
Consumption pattern is the combination of qualities , quantities , acts and tendencies characterizing a community or human group’s use of resources for survival , comfort and enjoyment .
To Malaysia , it just has a very single and closed corporation at the beginning before the international trade . They just sell themselves and grow food on their own . But some of the products are not as good as they think of because of the insufficient technology and the poor quality of materials supplies . Though with the same materials , they still can not produce better goods .
However , the international has changed this . It absorbs the investment as well as the varieties of goods such as food including Japanese sushi , Korea cuisine and Chinese dumplings to Malaysia . People begin to try those food and this has changed their habits . Meanwhile some goods which Malaysia is not good at producing are introduced for people to use them . So Malaysia take advantages of their special goods which have good quality to export in order to achieve more profits by using the extra time . It means they just produce what they do well in and focus on producing some special and goo products . For example , Malaysia has a good resources of rubber , so they focus on exporting this . Unlike the rubber , they don’t have enough resources to grow the rice. Thus Malaysia just depends on the importing from Thailand ,India and China mainly . This has changed the consumption pattern of Malaysia and made it much easier for people to consume .
In all , the total consumption pattern has been changed to the specialization by the international trade , which is really helpful to Malaysia . In the future , the consumption will be much perfect to Malaysia .
Olympia College JB
International trade 13
IMPROVE PRODUCT QUALITY AND PRODUCTION EFFICIENCY
Quality consists of the capacity to satisfy wants , quality is the degree to which a specific product satisfies the wants of a specific consumer.
Efficiency is the high speed to produce the goods in limit time .
As we know , international trade brings external competition to Malaysia which has affected the local market . Though the tax of importing is very high in result of the price of goods will be higher than the local ones , there are still many people purchasing the foreign goods due to the good quality . For example the shoes Adidas, Nike , Converse and Puma which has attracted many costumers in Malaysia .Though the price of them is very high , The quality has won the costumers . Therefore it reduces the number of local goods which should be sold . Meanwhile , the local market also face the internal competition . In order to sell more and stand in the market , they have to improve the quality of goods .
The local market take advantages of the international trade to import technology , good materials and funds to improve the quality . Of course , this method improve the production efficiency as well due to the advanced technology . In the same time and same condition , they can produce more products . This has made them become more confident and increase the economic growth of Malaysia . For example ,the statistics from the United States to a view , Malaysia imported machine tools in about more than 400 million US dollars . Mainly from Japan , Germany , China Taiwan. In order to encourage importing , Malaysia has taken the current zero-tariff policy on imported machines . With these materials , Malaysia has acquired large profits and improved the quality and efficiency .
Thus , international trade is really necessary to improve the product quality and production efficiency .
Olympia College JB
International trade 14
REDUCTION IN UNEMPLOYED RESOURCES
Reduction in unemployed resources means the unemployment rate has reduced . There are not too many people who don’t have jobs .
In terms of employees in Malaysia , international trade has reduced a lot by two main methods . One is the investment and export , anther one is transfer the labors .
Generally, investment is the application of money for earning more money. Investment also means savings or savings made through delayed consumption . Due to the international trade , a lot of firms have invested in Malaysia and build industry . It is not only a chance to increase the economic development , but also provides more jobs for employees . For example , a foreign company A want to invest and build a electric industry in Malaysia . Everything is prepared except the employees . As their own country’s employees [$1500] are very experience compared to Malaysia[$1000] , so they make use of the local workers so that they can save the principal and outcome . However , this indirectly help Malaysia to reduce the number of unemployed resources. In addition , As Malaysia need to export goods to obtain exchanges , this also has offered a stable market and reduce the number of employees .
Transfer the labors means the labors can go abroad to work and the foreign labors can come Malaysia to work . Malaysia has a good surrounding , which is near to Singapore , Thailand and so on. So every year a lot of people go to Singapore and Thailand to work in order to obtain more money . This has decreased the number of employees in Malaysia . To the work like agricultural and mining jobs , as the local people don’t like to work , then the foreign labors will solve this problem. The migrant labor came mainly from southern China and southern India .
In all , international trade is really efficient to reduce the unemployed rate , which improve the economic growth as well . Olympia College JB
International trade 15
WIDER CONSUMER CHOICE BRING HIGHER STANDARD OF LIVING
International trade has brought different countries’ products and it provides people a wider choice to consume as well . Meanwhile the standard of living has also been improved .
As you know , some people are attracted by the foreign products easily as they want to try the special things and the quality is also very good . Thus , the external competition ——–between foreign goods and local goods make the local firms improve their quality and beauty . Meanwhile the foreign firms has to improve themselves as well , it result the quality of goods will be updated every second . In addition , many firms import variety of goods in order to attract the consumers . They make the market more abundant .People can enjoy themselves and have better choices . Due to the abundant market , the standard of living has been improved higher and higher . Therefore people’s life is better and better .
A good example which can show you how Malaysia standard of living has been changed . According to Ministry of Finance statistics , as of August 2003 , Malaysia accounted for bank deposits of individual deposit 58% of the total annual of 6% . According to Ma energy telecommunications and multimedia Department of statistics , as if June 2004, fixed phone users 454.7 million , mobile users 1,239.8 million in urban and rural fixed-line telephone has a rate of 23% and 12% mobile phone ownership 53% and 2% . as of April 2006 , Malaysia has 420 million computer users , the number of internet users account for 40% .From this we know that the standard of living in Malaysia is increasing by the international trade fast .
In all ,Malaysia has taken a big step in terms of the standard of living after the international trade . The life of Malaysia is better and better .
Olympia College JB
International trade 16
GREATER MOBILITY OF RESOURCES
Mobility means can move . International trade has brought greater mobility of resources such as labors , goods and capital . This makes people exchange their technology and improve themselves.
The movement of students and highly skilled workers across borders is a real and complex phenomenon that poses challenges for developing countries —–with no simple solution.
Student mobility represents by the most important source of international trade in higher education . Recent years Malaysia has sent 25-30 thousand students to go abroad . Of course basically all the students are supported by the government .In year 2005, there were 42 712 Malaysian students went abroad for study. 38 784 of them chose to study in OECD countries while the rest went to non-OECD countries. Back here shows the breakdown of destinations where Malaysian students chose to go [data 1] . After they return , they will bring new technology and knowledge to make contributions to their mother land . This has helped Malaysia in the economy a lot and learn from other countries to improve themselves .
Highly skilled workers are one of the supreme arrogance of a person with great power . They are the one most countries want to have . So every year some highly skilled worker will be introduced and someone who has highly skilled in Malaysia take advantages of the skill to achieve exchange. For example , the contractors in Malaysia hands this year was 3.7 billion worth of overseas contracts . This has made a big difference to Malaysia economy .
This has taken a big step by the mobility of resources to Malaysia .
Olympia College JB
International Trade 19
Malaysia students go to… / Percentage (%) [ Number (2005) ]
Australia – 36.41 ( 15552 )
United Kingdom – 26.86 ( 11474 )
United States – 15.02 ( 6415 )
Japan – 4.48 ( 1915 )
New Zealand – 2.79 ( 1190 )
Ireland – 2.25 ( 960 )
Germany – 1.33 ( 566 )
France – 0.81 ( 345 )
Korea – 0.50 ( 212 )
Netherlands – 0.09 ( 40 )
Sweden – 0.09 ( 40 )
Finland – 0.03 ( 14 )
Denmark – 0.03 ( 11 )
Switzerland – 0.02 ( 10 )
Belgium – 0.02 ( 9 )
Norway – 0.02 ( 9 )
Spain – 0.01 ( 6 )
Austria – 0.01 ( 5 )
Czech Republic – 0.01 ( 4 )
Hungary – 0.01 ( 4 )
Turkey – 0.00 ( 2 )
Poland – 0.00 ( 1 )
Total OECD destinations : 90.80 ( 38784 )
Total Non-OECD destinations: 9.20 ( 3928 )
Source: OECD Education at a Glance 2007 – Indicator C3: Who studies abroad and
Olympia College JB
International trade 17
Overall , international trade has really benefit Malaysia so much that basically every part of Malaysia has been improved . It made Malaysia consumption pattern more special and fit for Malaysia themselves . To the quality and efficiency , they have been improved a big step and this has provided Malaysia a good method to obtain more profits . Meanwhile their standard of living is becoming higher and higher . In addition , Malaysia has obtained so many mobility of resources , especially the students and highly skilled workers , who have taken advantages of their knowledge and skill to make more countries to their countries . All of them above made Malaysia economy increasing fast and stably .with the international trade , the future of Malaysia will be much beautiful and developed .
Olympia College JB
Intro to Business 20
Cite This Work
To export a reference to this article please select a referencing stye below: