| Today,studies on international trade need shift away from traditional competitive ideologies and toward a modern cooperation framework.The purpose of this research is to develop a reciprocity methodology framework for international trade research based on the mutual prosperity ideology,with quantifiable examples.Malaysia and China were chosen as case studies to demonstrate this framework.Throughout the analysis,this study discover bias of some existing index,therefore,this study introduce several new international trade measurement indexes,including the comparative advantage above average index(CAa A),the export competitiveness advantage index(XCA),the import comparative need index(ICN),and the import demand per capital(DPK),to address the shortcomings of traditional research methods.Due to market size and population differences,the top 20% of imported and exported agricultural or forestry commodities from each country were chosen for study;nevertheless,the selection line was US$ 1 billion for China and US$ 100 million for Malaysia.For the China analysis,43 exported and 34 imported agricultural and forestry commodities were selected.While Malaysia analysis,43 exported and 28 imported agricultural and forestry commodities were identified.According to the analysis result on UNComtrade 2019 data,the most demanded agricultural or forestry commodity for China is soybean,with the highest import amount of US$ 35 billion;followed by bovine worth $7.19 billion,wood pulp worth $5.86 billion,palm oil worth $4 billion,and frozen shrimp worth $3.9 billion.Malaysia's most demanded agricultural or forestry commodities were cocoa beans worth $827 million,sugar worth $567 million,natural rubber latex worth $537 million,soy extract residual worth $521 million,and corn worth $477 million.Rubber tyres,furskin for cloth,cuttle fish and squid,garlic,mushroom,fresh apples,and onion are among China's export strengths.While Malaysia's export strengths include palm oil,rubber,gloves,rubber latex,automobile tyres,cocoa,and wood-related commodities such as wood pulp and paperboard.Food products such as biscuits,bakeware,and three-in-one coffee extract are also popular Malaysian exports.Meanwhile,trade items that have already achieved reciprocity between China and Malaysia include garlic,onion,apple,and coffee bean,all of which are exported by China.Palm oil,cocoa,durian,biscuits and other food preparation products,wood for fuel,and wood pulp are among the agricultural commodities exported by Malaysia to China.Aquatic industries such as shrimp,cuttle fish,and squid,as well as coffee bean,rice,and wheat,are all potential reciprocity commodities in trade that could be explored.Malaysian exports to China could include the poultry industry,including the downstream industry for bird(chicken)egg and chicken offal,as well as another commodity,wood pulp.International trade assessments must now take into account the entire supply chain,especially for agricultural and forestry base commodities.Many agricultural products,such as cocoa and coffee exported by Malaysia and aquatic products exported by China,are processed prior to export in order to maximize shelf life and ease of transport.Absolute advantages in a growing environment are no longer the single most important source of advantage.Countries use their well-developed industries and industry reputation,combined with economies of scale,to gain an export advantage,which is a combination of comparative advantage and monopoly due to economies of scale.Malaysia's cocoa,coffee,palm oil,and rubber industries are excellent examples.Malaysia imports raw commodities with minimal processing from neighboring countries and sells them under the Malaysia brand.As a result,the reciprocity trade concept is based on the component of complementing in trade,where the importer has a high import need and the exporter has a better competitive advantage,in the same time it also takes into account the offering and buying price. |
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