Economics Case Study 2: The Economic Impact of US Tariffs on Malaysia’s Economy

Case Study 2

In recent years, trade tensions between the United States and several countries have led to the imposition of tariffs on imported goods. Suppose the United States introduces higher tariffs on key Malaysian exports, such as palm oil, rubber products, or electronic components.

Question:

Using economic theories, analyse the potential impact of US tariffs on Malaysia’s economy. In your answer, discuss the short-term and long-term effects on Malaysian exporters (firms), local producers, consumers, and the overall macroeconomic environment. Apply concepts of demand and supply, comparative advantage, balance of trade, and government policy responses. Provide examples to illustrate how tariffs imposed by a major trading partner like the US could influence both microeconomic decision-making and macroeconomic outcomes in Malaysia.

 Coursework Submission Requirements:

• The word limit is 1500 words. This is a limit and the penalty of exceeding this limit is a five-mark deduction. The actual word count of the assignment must be stated by the student on the cover sheet of the coursework.
• The overall word count does include citations and quotations.
• The overall word count does not include the references, figures and tables.
• The discussion should demonstrate reading beyond lecture materials. Please use academic articles to support your arguments, as you are required to review the relevant literature. You can use “Google Scholar” to assist your search for relevant materials.
• The use of statistics and empirical evidence in your discussion is encouraged. It can be presented in the form of figures, tables or as in-text discussion.
• Cite and list your sources of reading material and data; follow the Harvard style of referencing (refer to the UG Student Handbook). Do not plagiarize.
• The coursework should consist of a brief introduction, main discussion, brief conclusion and references. Appendices are not required.
• The Turnitin’s Similarity Index should be less than 15%. If the similarity index is 15% and more, then marks deduction penalty (including awarding zero mark) or University disciplinary action can be taken.

Students should prepare and submit their coursework assessments via Moodle in the following format:

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