Analysis of International Trade Theories and Singapore/Malaysia Trade

This report provides an in-depth analysis of international trade theories, focusing on their application to the trade structures of Singapore and Malaysia. The introduction establishes the rationale for international trade, highlighting the benefits of importing and exporting goods and services. The study examines the trade structures of both countries, comparing key economic indicators like land area, GDP, and trade ratios. It delves into the concepts of absolute and comparative advantage, analyzing specific agricultural products and producer prices to determine each country's strengths. Furthermore, the report explores factor endowments using the Heckscher-Ohlin model, examining how each nation's resources influence its trade patterns. The analysis includes detailed data tables and calculations to support the findings, offering valuable insights into the dynamics of international trade and its practical implications for Singapore and Malaysia.