• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

International trade with WTO and AFTA

Extracts from this document...

Introduction

International trade with WTO and AFTA Participation in WTO, APEC and ASEAN, free trade arrangements, multilateral and bilateral negotiations and export promotion and strategies have been used as Malaysia's international trade policy mechanism to develop and promote trade. WTO is the sole international organization dealing with multilaterally agreed rules on trade among its member countries. Through WTO agreements, which spell out rights and obligations, member countries operate a nondiscriminatory multilateral trading system that has allowed world trade to grow. The goal is to help producers of goods and services, and exporters and importers, conduct their business in a manner that ensures predictability and stability. The WTO is also a forum for continuous negotiations to create a fairer, transparent, predictable, and liberal global trading environment. WTO agreements for trade in goods, agriculture and services spell out rules for member countries. Malaysia's commitment on goods includes binding of tariffs on 7,197 tariff lines, reduction of import duties, reduction of tariffs on agriculture products and elimination of duties for information technology products. Malaysia's commitments on services include allowing foreign participation in the services industry. AFTA, established in 1992, aims to increase ASEAN's competitive advantage as a production base geared for the world market by promoting intra ASEAN trade and industrial linkages, specialization and economies of scale; and attract more foreign direct investment (FDI) ...read more.

Middle

Strategies for Growth and Competitiveness Challenges for Malaysia include enhancing value creation through innovation and R&D, intensifying the use of ICT, raising the capability of small and medium-scale enterprises, strengthening domestic investment in high value-added activities and enhancing administrative and bureaucratic procedures to support the business environment. The following are important to enhance economic competitiveness: 1. Diversified and balanced economy 2. Ability to adapt rapidly to changes in production patterns, demand and competition 3. Technology capability - ability to adapt, innovate and invest 4. Strong and close industrial linkages, moved by productivity and skills To enhance and diversify the export market, it is imperative to tap export opportunities from FTA initiatives in ASEAN and other countries, collaborate with private sector in export of goods and services, research market and train and nurture exporters. The opportunities to increase growth and competitiveness include strengthening domestic capacity to improve services account, build up subsectors with increasing growth potential, intensify services export opportunities and create competitive service industries. While private sector is the prime mover, the government plays an important role to provide more conducive business environment. These include enhancing delivery system, minimize regulatory burden, providing incentives and tax exemption to reduce cost of doing business, addressing skill gaps and providing world class infrastructure. ...read more.

Conclusion

must learn to innovate."2 As such, we must do away with the current lepak culture and instill industrious culture among teenagers. For sure, the development of mindware should be high on Malaysia agenda list. Apart from skilled workers, market niche and branding is also important to provide competitive edge over other nations. Malaysia need not compete head on with India and China. Rather, Malaysia can focus on market niche by concentrating on value added services such as finance, supply chain management and human resources management. Branding is important to portray Malaysia as a safe investment haven, free of terrorists treat, accommodative host and efficient system. Indeed, a lot needs to be done before Malaysia could take the pole position in the outsourcing industry. With the right guidance and implementation, it is not impossible to achieve. Securing more outsourcing business is good for the Malaysian economy as the industry is estimated to have generated US$405 billion in 2003 and expected to balloon to US$500 billion in 2008.3 1 Chow, Kum Hor, 2004, The outsourcing bonanza, New Straits Times: 16 September. 2 Drucker, Peter F., Managing for the Future, Penguin Books, NY 3 Chow, Kum Hor, 2004, The outsourcing bonanza, New Straits Times: 16 September. Page 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. What are the important elements of International Trade

    lubricants including oil, and semi-manufactured goods, such as steel bars, and then turned these into manufactured goods, some of which then get exported. Britain was a major exporter of oil up to 1985 as it made up more than 20% of their exports, but later fell back to 7% by 1991.

  2. Evaluate the impact of Nike's outsourcing strategy and factory location on the host nation

    In which case it could be argued therefore that a transfer of technology from multinational operations will not benefit the host nation. The argument that the host nation will benefit from reduced unemployment if a multinational firm invests in that country can be countered as investment in less developed countries

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    The public seems much more concerned with the moral critical side of the argument than anything else. The public discusses what is "right" and what is "fair" more than they discuss what is cost effective. Generally, the public puts more emphasis on the morality of topics, and drug legalization is no different.

  2. Selecting international modes of entry and expansion

    wholly-owned subsidiaries, a set of important factors emerged that distinguished the use of one mode from another. The following section discusses the major findings of our study. Differences in what is most important to US and Japanese managers will be highlighted.

  1. Globalisation in Malaysia

    2008 saw GDP rise again to 5.1% mostly due to exporting oil and food at higher prices. The rate of inflation is also starting to rise, after a long period of falling inflation rates, caused by the current global slowdown (statistics.gov.my).

  2. analyze an organization (ba)

    3.4 Technological Technology is vital for competitive advantage and is a major driver of globalisation. Analysis of the technological environment involves developing an understanding of the effects of changes in technology and their impact on all areas of an industry, its members and their activities including: goods and services, production

  1. Organizations are starting to realize that the process of change is continuous and traditional ...

    Some successful organizations, which are fast on their feet, capable of developing new product cycles, and an ongoing stream of new products, are flexible and require a responsive workforce that can adapt to rapidly and even radically changing conditions. Social Trends During the past generation, there were no changes, which organizations have to adjust.

  2. Changes in the business environment and their impacts on business strategies.

    When public debt is high, government is sometimes tempted to print money and ignore inflation. This causes an erosion of the real value of the excessive public debt. Because of the tendency for economies to operate in cycle, debt levels must be assessed as much as possible on each level.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work