SEO Meta Keys, Description, Title, Keywords, and Heading

Question 1

CAFTA Open Doors for More Malaysian Products in China

The full implementation of the China-Asean Free Trade Area (CAFTA) from January 1 this year will allow more products from this country to me marketed in China. At the same time, more products from China will penetrate the Malaysian market. The new free-trade zone will remove tariffs on 90 percent of traded goods.

Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir said, “This will provide better opportunities for Malaysia to market its products in China. Our trade with China are in commodities and products and it is my hope that under CAFTA, Malaysia will market more of its consumer products such as food and services to China, especially in halal food, products that are in good demand in China. The ministry would also assist small and medium scale industries that want to market their halal food in China.

On China-ASEAN investment funds, Mukhriz said there was a need to create awareness among small-and-medium (SME) entrepreneurs and industries and the government can assume a role in terms of facilitating the use of funds made available by China.

The Chinese government has allocated US$10 billion under the China-ASEAN Investment Cooperation Fund and US$15 billion in loan facilities to finance mega investment projects within the region.

Adapted from The Star, January 10, 2010.
Questions:

(a) State and explain the protectionism tool mentioned in the article. Explain any other TWO (2) protectionism tools.                                                                     

(b) Elaborate any FOUR (4) benefits a country may gain from international trade.

(c) Explain THREE (3) reasons for Protectionism Policy.   

Question 2

Inflation up 3.5% on higher fuel costs

KUALA LUMPUR: Malaysia’s inflation rate rose 3.5% in December 2017 in line with expectations, as transport costs climbed on higher fuel prices but for 2018, analysts are expecting the impact to taper off and the inflation rate to decline.

The Statistic Department reported on Wednesday that overall index for inflation, as measured by the consumer price index (CPI) rose by 3.5% to 120.9 in December 2017 from 116.8 in 2016. Among the major groups which recorded increases were the indices for transport (+11.5%), food & non-alcoholic beverages (+4.1%).

“We expect inflation to decline to 2.7& in Q1 2018 because of base effects from the substantial fuel price hikes last year before reversing in Q2 and averaging 3.2% for the full year,” it said. It continues to expect Bank Negara to raise its interest rate by 25 basis points on Thursday to 3.25%, : which we believe would be intended more to reduce the pace of policy accommodation and prevent a build-up of financial imbalance risks”.

“The average price of one litre of RON95 petrol was RM2.27 in December 2017 as compared to RM1.90 in December 2016. As for RON97, the average price increased to RM2.55 in December 2017 as compared to RM2.25 in December 2016.

In terms of overall CPI, four states surpassed the national CPI rate of 3.5% namely Johor, Melaka, Negeri Sembilan and Selangor & Wilayah Persekutuan Putrajaya.

Adapted from The Star, 24 Jan 2018

Questions:

(a) Define inflation and state the major contributors to the hike of the inflation as   stated in the passage above.

(b) Identify and explain the monetary tool implemented by Bank Negara in the   article to reduce the increasing inflation rate.

(c) Explain other monetary tools that can be used by Bank Negara to reduce  inflation rate.

(d) Besides the policy mentioned in the article, explain another government policy that can be used by the government to curb inflation