Cocoa Export Essay

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CHAPTER ONE: INTRODUCTION The aim of the research is to study determinants of Malaysia’s cocoa export. This part will includes background of the study, objectives of study, scope of study, limitation of study and significance of study 1.1 Background of Study Growth in demand for chocolate during the twentieth century becomes a reason for increase in global demand for cocoa. Not only that, other factors that encourage demand for cocoa are due to the rise in per capita income and also populations. In general, a US$ 1,000 increase in income leads to 100 g rise in annual per capita consumption (Idris et al, 2011). Other substantial variables includes decreases in real retail prices, lower import duties, improved transportation methods, modern…show more content…
A more precise definition is given in terms of differential calculus. It is a toll for measuring the responsiveness of one variable to a change in another causative variable. An elastic variable (or elasticity value greater than 1) is one which changes less than proportionally in responses to change in other variables. 3.3.6.1 Elasticity Test Calculated as: Elasticity = % ∆ in dependent variable % ∆ in independent variable a.) Elasticity of cocoa bean export with respect to planted area. - Measure the degree of responsiveness in quantity of cocoa bean export due to change in cocoa planted area. QE = Quantity of cocoa export A = Cocoa planted area b.) Elasticity of cocoa bean export with respect to world price of cocoa. - Measure the degree of responsiveness in quantity of cocoa bean export due to change in a world price of cocoa. - QE = Quantity of cocoa export P = World price of cocoa c.) Elasticity of cocoa bean export with respect to cocoa export by competitors. - Measure the degree of responsiveness in quantity cocoa bean export due to a change in the quantity of cocoa export by competitors. - QE = Quantity of cocoa export C = Competitors’ cocoa

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