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Economic article analysis. The statement made by Ongkili indicates that the fishery industry of Malaysia is having inefficiency because it couldnt fully utilize and allocate its marine resources to the production in fishery.

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Introduction

1.0 Article Summary The chosen news "Revolutionise fishery export industry: Ongkili" was published on Sunday, September 6th 2009. This news was happened in Pangkor, Malaysia and it was basically reporting about the development of Malaysia's marine resource has not reach to its full potential yet. This single issue will eventually bring a lot of different economic problems not only to Malaysia but also other countries, which will be discussed later. 2.0 Introduction Since last few years, the marine exports of Malaysia have been decreasing due to some reasons such as pollution, changes of climate and other production constraints which disallowed fishery industry to continue the production growth, like disease attack and water quality ( ). As there are several issues which are related to current fishery market were brought up in this article, the purpose of this report is to analyse the incapability of Malaysia's fishery industry to fully utilize their resource and its other influences by using the economic theories and models. This report will cover the economic efficiency, changes in supply and elasticity. 3.0 Analysis 3.1 Economic Efficiency Economic efficiency is defined as optimally allocating all the resources is to produce and fulfill human's needs in the best way while minimizing the cost and prevent inefficiency ( ). ...read more.

Middle

By applying the ceteris paribus assumption here, where all the other factors remain constant, since Malaysia's marine exports have been decreasing for the past few years, it will eventually cause a shortage in China, due to the excess demand and limited supply of marine products. Figure 3 By referring to Figure 4, we can see while the supply curve shift leftward from S0 to S1, the equilibrium price also changed from E to E' as well as the equilibrium quantity. Before the supply of marine was decreased, the equilibrium price and quantity was set at P0 and Q0. However, after the supply curve shifted leftward, the equilibrium price eventually increased to P1. While the consumer is only able to pay for the marine products at the price of P0 with quantity demanded of Q0, the supplier is only able to produce and supply Q2 of marine products at the price of P0, hence the shortage occurs, which shown in the shaded area of the diagram in Figure 3. 3.4 Elasticity Price elasticity of demand for a good is depends on the responsiveness of the quantity demanded to a change in price, when all the other affects on buyers remain constant ( ). ...read more.

Conclusion

As a result, this positive technology will increase the supply of marine products and help in solving the export's problem. Figure 5 By referring to Figure 5, suppose that the supply curve of marine product is S0 but after applying modern technology, the supply curve shifts from S0 to S1 which shows that it shifts to the right where the quantity supplied of marine product has increased. This will then result in equilibrium quantity to increase from Q0 to Q1 and equilibrium price to decrease from P0 to P1. 4.0 Conclusion In conclusion, the news article showed the inefficiency of Malaysia in their fishery industry. The inefficiency indirectly brings impacts to the supply of marine products and caused shortage for the demand of marine products. However, by implanting the new technology from foreign country in fishery industry, it is able to increase the productivity for marine products in no days. As there are many other factors which may affects the market for marine product, the analysis made above is based on the economic theories and models and also the ceteris paribus assumption. Therefore, although it is not entirely true situation for the market of marine products in real world, but the economic theories and assumption helped in the explanation of the analysis about the market of marine product, involving all the relevant factors. http://www.mackinac.org/article.aspx?ID=1247 http://www.theborneopost.com/?p=57787 http://investopedia.com/terms/e/economic_efficiency.asp ?? ?? ?? ?? 1 ...read more.

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