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Comparing Export Of Malaysia And China

5099 words - 20 pages

1.0 Introduction Trade is a very important economic activity now, there is no countries in the world that was not involved in the trade both inter-regional trade, among regions and countries. The purpose of a trade is increasing the welfare of the country, as indicated by the increase in GDP (Gross Domestic Products), increased industrialization, transportation progress, and development efforts towards globalization. International trade is divided into two which are export and import. Export is known as the domestic trade to another country while import is trade from the outside into domestic.Import is defined as the process of transport of goods or commodities from one country to another country legally, generally in the trade process. The import process is an action to entering goods or commodities from other countries into the country. Imports of goods require the intervention of the customs in the country of the sender or recipient. Basically, there have two types of import. The first is industrial and consumer goods and second is intermediate goods and services. There are some reasons which make a country decide to import products and services from other countries. To supply the domestic makket demand at a cheaper price is one of the reasons. Besides that, import goods and services will make the domestic market to improve the quality of products and services so that they can compete to the import products and services. In addition, country also will import products which are not available in the local market if the products have a high demand in that country. In addition, there are three board type of importers which are importers who are looking for any product around the world to import and sell, importers who are looking for foreign sourching to get their products at the cheaper price and importers who are looking for foreign sourching as part of their global supply chain.Export is known as the ship of the goods and services from local country to foreign country. Expoter is the person who sell the goods and services to foreign country while importer is the person who buy the goods and services from other country. Doing business through internet such as Amazon and eBay also know as the export trade. This type of business have largery by passed the involvement of customs in many countries because of the low individual values. As we know, export is important to a country because it can increase the profit of that country.In the international trade, there have some advantages which are ownership advantages, location advantages and internationalization advantages. Ownership advantages are defined as the firm's specific assets, international experience, and the ability to develop either low- cost or differentiated products within the contacts of its value chain. On the other hand, locational advantages of a particular market are known as a combination of market potential and investment risk. Internationalization advantages are the benefits of...

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