The second issues is about the bauxite in Kuantan, Pahang. Malaysia economy depend on the import and export activities in the country and on the bussiness and household spending (Kwan Tse, 2013) as well as domestic demand of a product. From 21st century, people in production plays an important role in managing mineral resource also economic system (Kwan Tse, 2013). The economy also seen mineral trade which means Malaysia import the source of mineral to the others country. For example bauxite that has been import to the China.
Bauxite is the one of mineral resources in Malaysia. Bauxite is used to produce the aluminium. From bauxite many product can be produce, if Malaysia can used this resources they can make many product through it. Malaysia also having a problem producing the product because they do not have the machine and technology to make the product (Kwan Tse, 2013). Because of this, Malaysia need to import the bauxite to the other country that can produce product from bauxite. China is the one of the big country takes bauxite from Malaysia as form of import and produce that product (Kwan Tse, 2013). We can see that the demand of the people in this country make Malaysia need to export bauxite to China.
Based on article Dependency Theory: An Introduction by Vincent Ferraro (Ferraro, 1996). In this article, Ferraro stated that dependency theory is about big state who control the…show more content… In this theory, people can see that how the rich exploit the periphery country to get resources to make a product. Malaysia and China depend with each others. This is because Malaysia import the source to the China and China also depend on the resources from the Malaysia to produce the product. They also sale the product to the pheriphery country in a expensive price. This big country also use the periphery country to get the resources because they have money to buy but don’t have the resources to produce