Export Flow Of Wooden Furniture Essay
There have been growing concern from many researchers to study furniture industry. Haque et al (2013) studied regarding market prospect and challenges of furniture product from Malaysia by using export competitiveness and revealed comparative advantage methodes. Lee et al (2004) conducted study regarding correlation between furniture product knowledge and consumers’ satisfaction by using fuzzy linguistic and they also studied to predict consumers’ satisfaction based on the features of furniture product design by using multiple linear regression. Moreover, Gusman et al (2012) measured the competitiveness level in furniture Smes of Spain by focussing on competitiveness, financial performance, cost reduction and technology. Nonetheless, very little empirical research has been carried out on the assessment of the factors contributing in affecting export flow of wooden furniture in International market. Hence, this study will discuss regarding export flow of wooden furniture from the perspective of international trade, revealed comparative advantage and gravity model.
3.1. International Trade
Trade in the broadest sense is a process of exchange of goods and services, it reflected through export and import activities performed by individuals to one another or one country to another country on the basis of mutual agreement. (Oktaviani and Novianti 2009). The main reasons for trading between countries is because they differ from each other. They trade to…