Trade plays crucial roles to most of the countries. It provides profits to each country. Trade is divided into two main parts which are import and export. As other countries, Malaysia also has benefit a lot from international trade. One of the advantage is change in consumption pattern. At the beginning, Malaysia has a very single and closed corporation 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. Varieties of goods such as food including Japanese sushi, Korea cuisine and Chinese dumplings was import to Malaysia. Malaysian people begin to try those food and had changed their habits.
Malaysia take advantages of their special goods which have good quality to export to other countries in order to achieve more profits. For example, Malaysia has good resources of rubber so they focus on exporting this whereas, 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.Malaysian local market takes advantages on the international trade to import technology, good materials and funds to improve the quality. This improve the production efficiency 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, in United State statistics, Malaysia’s imported machine tools in about more than 400 million US dollars, mainly from Japan, Germany, China Taiwan.A lot of firms have invested in Malaysia and build industry due to the trade. It is not only a chance to increase the economic development, but also provides more jobs for employees.
For example, a foreign company want to invest and build electric industry in Malaysia but have no employees. As their own country’s employees are very expensive compared to Malaysia, so they make use of the local workers so that they can save their money. Indirectly, it 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.
Through trade, Malaysia have increase their market sizes. Since Malaysia’s market size is small compared to ASEAN and European countries, trade has help Malaysia to expand their market size by exporting their product to overseas. This increases the profitability of the country. Malaysia also achieve their economic scale by importing and exporting the goods. Malaysia buys large quantities from other countries and obtain a very cheap price compare to their country. Then they import their goods to the country in a very large amount and sell it for a cheap price.
Malaysia obtain a lot profit through this process.