THE ECONOMICS FOR MANAGER

Running head: ECONOMICS FOR MANAGER
ECONOMICS FOR MANAGER
Name of the Student
Name of the University
Author Note

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Table of Contents
Part (A) – Case Study: Why Japan Has to Step Up with Malaysia?..........................................2
Answer to Question 1:............................................................................................................2
Answer to Question 2:............................................................................................................4
Answer to Question 3:............................................................................................................7
Part (B): Economic Report Writing...........................................................................................8
The technology of the production process.............................................................................8
The prices of the inputs of production...................................................................................9
Set of incentives facing the given producers........................................................................11
Literature Review.................................................................................................................12
Expected Outcome...............................................................................................................13
References................................................................................................................................14

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Part (A) – Case Study: Why Japan Has to Step Up with Malaysia?
Answer to Question 1:
“Foreign direct investment” plays an significant role in the development of an
economy of any country, Malaysia is also trying to attract foreign investment in the country
to develop its economic condition as foreign direct investments directly impact on the
infrastructural development and the employment rate by creating job opportunity. Malaysia
has long term relationship with japan over the years and now the new government want to
create a string relationship with china so that its dependency on japan can be reduced. Japan
contributed in the economic development of Malaysia since 1950 by developing many
technological hubs and also in the development of infrastructure facilities in the country.
Malaysia got help from Japan in various ways through its various agencies, the “Japan
International Corporation Agency” is one of the significant project that helped Malaysia to
set up many business organizations, from which huge employment opportunity occurred and
developed the economy of Malaysia (Aftab et al., 2016). Further the Japanese foreign
investment in Penang in the 1960 assist the country to become a hub for the electrical x. the
manufacturers of Japan in the “E&E” and automotive sectors have continuously make
investment in Malaysia. There are look east policy which the prime minister manifest the
summit of “Malaysia- Japan Ties”. These initiatives taken by Japan has played a most
important role in the improvement of the economic development of the country and also to
make the foreign direct investment policy of Malaysia as a major success.
Although in the current days it has been seen that the role of japan become passive
and the country is not taking any aggressive investment decision that can accelerate the
growth rate of the economy of Malaysia. A project like the “digital free trade zone”, but on

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the software side the Japanese technology is not that effective. But in the communication,
electrical and electronic aspects the Japanese technology is same as that of the Chinese
technology. It can be said that JICA has played a very vital role in assisting the companies in
Malaysia. Although Japan has to make more contribution in the new sector sin Malaysia
particularly in the SME sector huge foreign investment is required (Aziz, Ahmad &
Zainuddin, 2017). Japanese companies have to make contribution in the technology transfer,
technology up gradation and in the field of development and research. This can be made only
by developing research and highly advanced technology centers in Malaysia that will give
new dimensions in the field of technology and science national security trade and economic
collaboration.
It can be clearly observed that Japan has made immense contribution in the economic
development of Malaysia but in the modern days Japan’s role has to be shifted from passive
investment to an active investor. The multinational companies of japan in Malaysia has to
take more social initiatives rather than fulfilling their financial objective.
China on the other hand is a slow but steady investor in Malaysia. The FDI policy of
china towards Malaysia is conservative in nature and in the past since 1987 to 2009 china
never make huge investment in Malaysia, but in 2006 a sudden change has been observed in
the Chinese policy and they started to make huge investment in the steel projects in Malaysia
(Baharudin et al., 2019). But that investment again falls down in the year 2007-08 due to
global economic crisis.
China played an important role in the development of the intra-regional trade and
vertical specialization, the areas which are growing rapidly in the modern economic
condition. The vertical specialization means that china imports raw materials from Malaysia
and manufacture final products which are again exported back to Malaysia. In the modern