Knowledge about trade of Myanmar
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Not only Myanmar but also every country carries out trading as a mandatory. For development of the country, trading is elementary and very prominent. It is directly related with the income of the country.
Basically, there are two types of trading:
- Internal trading and
- External trading.
Internal trading is specified as the exchange and selling of goods that are performed within the boundary of the country. While carrying out internal trading, only the currency that the entire country officially accepted can be used. For example, in the matter of Myanmar, only Myanmar currency, ‘Kyat’ can be used to trade goods while performing internal trading. The government coherently lays down regulations related with the policy of internal trading. For the goods that were made and sold in local, there is no need to pay taxes in trading from one region to another.
Internal trading is involved as the important area for the economic development of the country. Internal trading makes local market stable and reduces the unstable commodity prices for local consumers. Unless the internal trading can be maintained systematically, instability of the local market with the rise of commodity prices and the lack of local products will arise. Therefore, to make the local market stable, the local trading needs to be performed systematically.
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External trading is more gainful and complex than internal trading. For the merchants who do external trading, the rates of foreign currency changes, international rules and regulations are needed to know.
External trading can not only develop the income of the country but also reduce the unnecessary cost for commodity production. While making external trading, primarily it can not only reduce the unnecessary cost more by importing goods that cannot produce in local, that are rare raw material and difficult to produce and that are expensive, but also make more profit for the country. In the matter of citizens, there are a lot to choose in the market and can boost standard of living by consuming better quality goods.
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The market of external trading is more extensive than internal trading and can improve international trading. It can improve international relation. For the exception, external trading has to pay foreign transportation cost which is not necessary to pay in internal trading. The farther distance between the trading countries, the higher cost for the transportation is. Therefore, the goods imported from countries like USA, Japan are more expensive.
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To protect local enterprises and factories from the competition of foreign enterprises, the protection rules are applied in many countries. Enacted laws like collecting dues, setting trading shares, blocking trading, controlling, are pronounced. In external trading, exporting raw materials and resources that are plentiful in local can increase foreign income.
As Myanmar, rice that produces plenty and can cultivate capably in local is used to export as the main foreign freight. Nowadays, rice market of Myanmar within South East Asian becomes more extensive compared to other countries and foreign trading becomes more elevated. 80 percent of Myanmar rice commerce is exported to China and the other 20 percent is exported to other foreign countries.