Content Introduction Forms of Restrictions Justifications for Restrictions Reasons Against Restrictions Conclusion References

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Introduction
International trades in order to exchange of goods and services between all of the countries. This type of trading will affect the world economy. The prices or the demands and supplies will also affected by the global activities. In the order hand the political change in the Asia could also affect the cost of the labor, this will affect our manufacturing costs for those companies which set up their factories in Malaysia and this will make the prices of items increase or decrease. Beside of this, there are also few of restriction in the international trade, such as tariff, licensing requirements, quotas, embargoes, standards and more. All of these restrictions in the international trade are in order to protect the local buyers and sellers.

FORMS OF RESTRICTIONS First of the restriction of international trade is tariff, it is also known as a custom duties. It is a tax added on the goods that is imported from other countries. (Michael, 2008) The effect of tariff is to raise the prices of the goods imported from other countries. The objective of tariff is to protect the local producers of the similar products with those imported goods, and let the local producers to sell a higher price to get more revenue. By the way, the money that collected from the tariff is received by the government and it also known as protective tariffs and revenue tariffs. Protective tariffs are to make the imported products to be more expensive than local products; this is a way that government has used to protect the local industries from the market competition. Revenue tariffs are to make more money for the government, it also known as government revenue. For example, Malaysias government put high custom duty on those imported cars such as, BMW, Volkswagen, Audi and more. This is because they want to protect the position in the market competition of Malaysias domestic car, Proton. In the other hand, the high custom duty on those imported cars will become our government revenue. The following of the restriction of international trade is licensing requirements. (Deviga & Karunagaran, 2010, p. 346) Some of the countries are requiring an import or export license when they are trading with other countries. When the local importer is required to have a license of import foreign goods come into Malaysia, the imports can be stopped by the customs. It is because the importer does not have the licenses of import the foreign goods. Beside of this, the export licenses are to restrict the trade with the certain of countries and this is also in order to maintain the local prices of natural and agriculture resources from rising such as petroleum, rubber, palm oil,

black pepper and more. For example, the producers of rubber must have the licenses of export of the rubber, so that they can trade with the other countries. Apart from that, standards of the goods are also a type of restriction of international trade. Standards are a law and also a regulation that nations use to restrict the import goods. Frequently the nations will set up a higher of standards of health and safety for the import goods than the goods that produced in local. These have become a main form of trade restriction in the international and these are also used in remarkable amount by different countries. For example, a branded supplement named Nutrilite from United Stated America wanted to sell their products in Malaysia, but the products that imported from the United Stated America does not meet the requirement, and it is having risk to harm the humans health, so no one businessman can sell the products in Malaysia until the products be in line with the requirements of the standards that is setted in Malaysia. Lastly, quotas are also a type of restriction in the international trade and it usually set by the government or by an organization of producers of a certain product. (Michael, 2008) The uses of quotas in trade is for the government set a quota limiting the import of certain good, the local producers are having chances to improve their position in the market of competition. Such protectionist policies in industries are including steel, wood, autos and some of consumers electronics products. The local industries had been protected from the international competition. In the other hand, the quotas in production are usually controlled by a government or a group of producers. They limit the supply of certain products in order to maintain the products prices level. For example, the Organization of Rubber Exporting Countries will set a production quota for the rubber in order to maintain the price of rubber in the global markets.

JUSTIFICATIONS FOR RESTRICTIONS The main justification for restrictions on international trade is in order to protect the domestic industries because some of the prices of goods that imported from other countries could be cheaper than the one product that produced in the same country. So the government will set up some restrictions to benefits the industries and protect them. For example, Malaysia has own domestic branded car, Proton, so the government will set up some restrictions to raise the prices of the import cars and make the prices of Protons car lower than the import car. So that Proton can maintain its position in the market competition. The following reason for restrictions on international trade is in order to protect the safety of the peoples in the country and the country too. This is because, if a country does not have any restrictions on international trade, this may create risks to harm the peoples inside the country and the country too. For example, if the Malaysia allows Malaysians to have high tech weapon trading with other countries, then the criminal activities of Malaysia will be increase and the peoples who are living in Malaysia will be very dangerous. This will lower the safety level of Malaysia in the global and also affect the economy of Malaysia. Apart from that, the justification for restrictions on international trade is also to protect the jobs that domestic workers having now. This is because the foreign workers will loot the country people jobs and this may cause the increases of the level of unemployment in the country. For example, Malaysia import many of goods from other country and this will cause the people lost their jobs who are working in the Malaysias industries. So the government will create some restrictions on

international trade to overcome and avoid this type of problems and also trying to reduce the level of unemployment in Malaysia. Besides that, the government will also maintain the countrys money exchange rate when the peoples are having trading activities in the global. This is because when a countrys imports more than exports or exports more than imports this may affect the national income of the country and the currency of the country. For example, if Malaysian import more goods come into Malaysia than we export goods to other country then it may cause the currency and the national income of Malaysia become lower. So that the Malaysias government is in order to control the import and the export to maintain Malaysias currency and national income and avoid from the inflation. Lastly reason of restriction on the international trade, the government is also in order to counter against unfair trading practices by other nations and protect the infant industries from the process of dumping. (Irvin, 2011, pp. 490-491) For example, the Bonia Company is new to local markets on the other hand Polo Jeans Company is as known as worldwide. Therefore, Bonia Company is not applicable to compete with Polo Jeans Company, this is because the gap between Polo and Bonia is quite far range. This is due to the Bonia is a new industry in local market and to slowly raise their position in the market. On the other hand, Polo Jeans is a high profits earning, this is because the company is known as worldwide.

REASONS AGAINST RESTRICTIONS The main justification against trade restriction is people want more choices of goods in the domestic market. This is because the trading activities to the global in the country do not have any restriction and people in the country are not just only can buy the certain goods, they have more choices of goods to choose to buy. (Bradley, 2006, p. 219) For example, if Malaysias government does not have set up restrictions on international trade, many of industries exported their goods come into Malaysia, then Malaysians are having more choices to choose which item and which brand to buy. On the other hand, this situation will cause the Malaysians do not want to buy local product, because they think that the import goods is better than local products. So that Malaysias industries will be going down and down. The following of the reason of against trade restriction is the cost of the products that is imported from other countries sometime will be cheaper than local products and the quality of the products are the same with each other. (John, S, 2006, p646- 647) For example, the peoples in Malaysia imported 1000 pairs of Nike sport shoes and sell it in the market and the cost of the Nike sport shoes are cheaper than the local branded sport shoes, so they set the selling prices of the Nike sport shoes lower than the local branded sport shoes, then of course will be more local peoples choose to buy Nike sport shoes. This is because Nike is known as worldwide and the prices are cheaper than the local branded shoes. This will reduce the sales of the local products in domestic market. Apart from that, the people in the country can export their goods to other country with a higher price than the local price to earn more money. (Irvin, 2011, p. 490) For example, John is a boss of a company, so he exports his company good to other country and mark up the price by 25%. So that his company will get a greater profit
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but the product that he sells are foreign product that has been rejected in his own country. In order to get rid of the balance of his rejected product, so he is trying to sell in a local country. This will affect the local markets sales. Last of the reason of against trade restriction are the domestic industries can hire foreign workers to work for them and this action will cut the cost of production of their products. This is because the wages of the foreign workers are lower than local workers. For example, Malaysias industries are hiring a lot of foreign workers from Filipina, Vietnam and Indonesia. So the cost of the products that produce from the local industries will be lower. On the other hand, this will cause the local peoples lost their jobs and it will increase the level of the unemployment in Malaysia.

Conclusion
The exports and imports of goods and services through the global are known as international trade. If a countrys exports goods and services more than imports, so that the country will have more profits. On the other hand, if a countrys that imports of goods and services more than exports, it will cause inflation to the country. The government must have to set up restriction on certain type of international trade to defense the economy, safety, health and more of the local peoples. This is because the restriction on international trade can benefits local industries and maintain the level of unemployment in the country and this showed government encourage local peoples to buy local products.

References
Bradley, R. (2006). The Economy Today, 10th edn. Washington D.C: McGraw Hill. Deviga , V., & Karunagaran, M. (2010). Principle of Economics, 2nd ed. Kuala Lumpur: Oxford. Irvin, B. (2011). Macroeconomics for Today, 7th ed. United States: South-Western CENCAGE Learning. Michael, P. (2008). Macroeconomics, 8th ed. United States: Pearson International Edition. S, J. (2006). Economics, 6 edn. Spain: Pearson Education Limited.

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