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International Trade And Its Effects On The Environment

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International Trade is the trading of products and administrations between nations. This kind of exchange offers ascend to a world economy, in which costs, or supply and request, influence and are influenced by worldwide occasions. Companies which goes international have to adapt to the host environment as it is significantly different from the home environment. Home environment is simply defined as the company’s local or place of origin, while host environment is defined as the foreign country the firm is entering. In this assignment I will be choosing and evaluating the host environment perspective, Malaysia as the host country and how the host country government policies encourage foreign investments in Malaysia. Foreign Direct Investment is basically defined as a process to acquire ownership of assets or expending a company 's control of assets through cross border expenditure (Froot, 1993). In this assignment further evaluated would be the policies and programmes that Malaysia have put forth to encourage foreign investment. Income Tax Act 1967, Excise Act 1976, Promotion of Investments Act 1986, Sales Tax Act 1972 and Free Zone Act 1990 tax, tax incentives provided by Malaysia, in the areas such as manufacturing, agriculture, tourism and approved service sectors, R&D, training and environmental protection (www.mipca.com.my, n.a). Where total or partial relief of income tax is granted under direct tax incentives, and various exemptions in the area of import duty, sales
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