Bachelor of Science (Hons) Maritime Business
MODULE NAME: MACROECONOMICS
MODULE CODE: ECON6001
ASSIGNMENT TITLE: Macroeconomics
NO OF ASSIGNMENT TASK TO COMPLETE: Complete the given task
Dr. Eddy Yap
ASSIGNMENT SETTER’S NAME:
TERM (SEMESTER): T3,2023
SUBMISSION DEADLINE: 1 December 2023
Task Report Total: 80%
TOTAL MARKS AWARDED: Presentation Total (if any): 20%
Assignment Total: 100%
WEIGHTAGE OF FINAL MARKS:
NAME OF STUDENT: Nur Amyati Naj Bt Mohamad Abdul Kadir
Declaration (to be filled by student and when submitting the report)
I, hereby confirm that this assignment task report is my own
work and not copied or plagiarized from any sources. I have referenced the sources from which
the information is obtained by me for this assignment.
Signature Date
Individual Task
Explain three (3) key learnings from Macroeconomics which you can utilise in making
decision in the maritime business sector.
Macroeconomics is the study of the behaviour of an economy as a whole, including
its markets, companies, customers, and governments, is known as macroeconomics.
Macroeconomics studies trends in the economy as a whole, including changes in
unemployment, Gross Domestic Product (GDP), national income, price levels, inflation, and
the pace of economic growth. In microeconomics we have learn the basic in economy which
is about labour, land, capital and entrepreneurship. The different between microeconomics
and macroeconomics is in micro we just learn the smaller factors in economy while
macroeconomics we learn the wide world economy including international economy.
Maritime economics explains the structure and operation of the shipping industry,
including the motivations behind maritime transportation, how it is organised, how freight
rates are determined, ship financing, market cycles, return on investment for shipping
companies, how they weather depressions, factors that influence ship design, and market
projections. The maritime economics also have another name which is blue economy. Blue
economy shows about the economy that using a shipping by ocean or sea. The three parts of
the marine economic model are supply, demand, and the freight rate mechanism. The freight
rate mechanism includes important variables that affect how supply and demand operate in
the shipping sector. The dynamics of the market are emphasised. Mostly country using a
maritime economy as the main export and import because the fee for ships is cheaper than
using an air shipping.
The advantages that we get when study the macroeconomics for making decision in
the maritime business sector is we can manage Gross Domestic Product (GDP) well by the
good timing. Government can spend their money a lot when the price of goods and services
are cheap. Besides government will not import too much from other country to avoid the
GDP decrease. If the GDP decrease it will affect a lot of economy in Malaysia especially in
maritime business because the biggest shipping of Malaysia is by the sea. Other than that,
government also can increase their income by export goods and services that needed by other
country. For example, Malaysia was the biggest exporter palm oil and rubber. China was the
largest country that import the rubber from Malaysia. So, the export of goods was increase
and GDP also increase. GDP increase means the economy of country was good because
Malaysia using their all their ship. Maritime business was the biggest component economy
that give wealth to Malaysia.
Furthermore, learning macroeconomics also give us to rational thinking about making
decision. We can think rationally about making strategic planning for business maritime
because there were a lot of part that we must care about. Wrong decision will give a big
impact in maritime business such us lost thousand of ringgit, lost a lot of containers and give
a high cost to Malaysia’s economy. Using the matured thinking will improve a knowledge
skill in making decision that can lead into getting more wealth business in maritime business.
The good communication from quality thinking between Malaysia and other countries can
attract other countries to more confident in invest their money in Malaysia’s economy.
Last but not least, from learning the macroeconomics to make decision in maritime
business sector is we can lower the cost of shipping which is using the opportunity costs. We
can make some hard decision with the opportunity cost that give more benefit in maritime
business sector. For example, Malaysia hires more local people than foreign worker to less
the unemployment in country. It is because there were a lot of foreign worker come to
Malaysia to work because in their country was not have any available works. So, Malaysia
must to let local people to get in maritime business because in maritime business they need
more people to handle the port, ship and containers. The higher position in maritime business
will hire more local people than foreign to lower the rate of unemployment in economy
Malaysia. the good decision will give a lot of benefit to our country.
To conclude all of above, learning macroeconomics give us to doing the right decision
in improve our country economy to go well. The good decision will give more income to and
our country. Malaysia also can grow in parallel with developed countries such as China,
Unites State and others even in maritime business sector.
