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Submitted by zach2008 on February 12, 2008
Category: Miscellaneous
Words: 3618 | Pages: 15
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1. Executive Summary
This document discuss Malaysia’s external trade over 2003 to 2005 base on the recent Economic Report issued Bank Negara of Malaysia and it’s similar source.
Balance of payment figures extracted from Bank Negara Malaysia annual report from 2003 to 2005, balance of payments (BOP) is the place where countries record their monetary transactions with the rest of the world. Transactions are either marked as a credit or a debit.
Malaysia recorded trade surplus from 2003 to 2005 main driver for export growth are:-
• Continue positive economic expansion both in the industrialized and developing economies.
• Strong external demand, originating from the global recovery of the electrical and electronic (E&E) sector.
• Growth in exports to major markets, especially to the United States of America and ASEAN Escalation in the average price of crude petroleum from US$41.40 per barrel in 2004 to US$56.50 per barrel in 2005.
Major trade partners are United States, Singapore, Japan and China with majority of trade in manufactured goods such as E&E product.
Import trend are also upward mainly due to higher imports of capital and intermediate goods.
Economic policies undertaken by the government in relation to external trade by the Malaysia government such as Free Trade Agreement, Ninth Malaysia Development plan, Industry Master Plan 3, Monetary and Fiscal policy are key economics policy taken by the government to ensure continue growth of the Malaysia external trade.
2. Introduction
International trade is the exchange of goods and services across international boundaries or territories. In most countries, it represents a significant share of GDP. International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.
An open economy...
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