[Competitive ability of oil palm and rubber commodities in global market]
1997
Wiranta, S. | Firmansyah
In the last decade, the competition in traded goods has internationalized not only in manufacturing industries but also in services. Firms in each nation compete with the others in selling their product in international market, and investing in many nations to take advantages of low cost factors. They also form alliances with firms from other nations to gain access to their strengths. The developing nations in competing with others are mostly based on factor of cost advantages with no strategy for moving beyond them. However, those nations in this situation will face a threat of losing competition and problems in supporting attractive wages and return of capital. In this case, Indonesia also faces the problem of global competition due to the still focusing of comparative advantages such as labor and natural resources abundance. Nevertheless, in the resource based industry such as rubber and oil palm industries, would Indonesia gain advantages of the above abundance? How the profile and prospect of two commodities in the future? This paper aims at elaborate those two commodities in comparism to other major producers of oil palm and rubber, Malaysia and Thailand
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