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. …show more content…
(Oktaviani and Novianti 2009). The main reasons for trading between countries is because they differ from each other. They trade to achieve economies of scale. These trading activities can cause trade balance and each country will benefit from international trade if they make specialization to produce goods that have a comparative advantage, or import goods that do not have a comparative advantage. Furthermore, there are several factors that can affect international trade, such as, the desire to expand the market, increase foreign exchange earnings for development activities, the difference between the country of supply and demand, as well as due to differences in the relative cost of producing a particular commodity (Salvatore 1996). Another reason that cause international trade is driven by demand from the importing country. Definition of demand (Lipsey 1999) itself is the amount of a commodity to be purchased by households. Export demand means the number one export commodity demanded by a particular country. Factors that determine the demand for the commodity in the market described in Lipsey (1999), among …show more content…
It is determined by the country’s availability of cheap resources. It includes a country’s domestic and international competitiveness and its technological advancement and innovation.(Russu 2011). Many study have been done by researchers using RCA, among others, Karina (2009) conducted research on competitiveness and influence factors of Indonesia products that sensitive to the environment. Han et al (2009) conducted research on the global competitiveness of the Chinese wooden furniture industry using Balassa 's Revealed Comparative Advantage (RCA)