The Effect of Production of Natural Rubber to Economy

The world economy as well as in Malaysia has the ups and downs.There are many factors that can cause to those ups and downs.When the economy is stable,all things will flow smoothly but when the economy goes down,many problems will arise.Production of rubber always give many effects to the world economy because the production of natural rubber is not syncronised year by year.There are three factors that causes this ; the demand from the companies,the price and the economy itself.

First,the production of natural rubber depends on the demand or the needs from big company such as from company that produce tyre,slipper or even raincoat.There are many company that needs natural rubber to make their products.Usually there are stable needs because the companies always need the natural rubber to produce their products.

Next,the second factor will be the price.The price for natural rubber always increase and decrease.If the price increase,it will drastically increase and the same goes when the price falls.When this thing happen,the economy will become unstable and hard to predict.Futhermore,when the price is low,the production of natural rubber will exceed the limit and wasted.

Last but not least,is the factor of economy.The world economy affect the production of natural rubber.When the world economy is at stable or increase,the production of natural rubber also will be stable but when the economy is bad,the production of natural rubber also will be low.

In a nut shell,the production of natural rubber do effect the economy as its price are not consistent and changeable due to different factors.So,in order to stabilise the economy,we have to stabilise the production of natural rubber also.

-NUR HANANI BT A.HAMID

-103483

-SEC 21 GROUP 3