Palm Oil Index Case Study

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CHAPTER 1 INTRODUCTION 1.0 Introduction This chapter introduces the outline of the study. It begins with the overview of the World Palm Oil Price, Malaysia Palm Oil Price, Malaysia Palm Oil Board (MPOB), Malaysia Palm Oil Plantation Index; FTSE Bursa Malaysia Palm Oil Plantation Index (FTFBMPM); Malaysia Futures Market; Bursa Malaysia Derivatives Berhad (BMDB); Indonesia Palm Oil Price, Indonesia Palm Oil Board (IPOB), Indonesia Palm Oil Plantation Index; Jakarta …; and Indonesia Futures Market; Jakarta Futures Exchange (JFX). The next things that will be explained in this chapter are the problem statement, research questions, and research objectives. These are where the correlation between crude palm oil futures price and plantation index …show more content…

Objective can be defined as something that someone or somebody needs to achieve. Objectives are crucial in one’s life as it encourages people to go further. General objective is the statement that is not specific, in further or less accurate terms while for the specific objective, it is the statement that is so specific and it must be in more accurate terms (UNESCO, n.d.). Focusing on the topic, the general objective has been developed to study the correlation between variables. This study is generally looking at the correlation between the changes in futures crude palm oil (FCPO) prices with the performance of Palm Oil Plantation Index: Case of Malaysia and …show more content…

It describes the framework whereby it is used in many cases to specify on the significant expectations or assumptions (Swanson, 2013). Besides, it is a framework that links with researchers to current knowledge (“The Conceptual”, 2013). Despite being the guidance for the interpretation of results, this theoretical framework specifies relationships or correlation that exists in between the independent variables and dependent variables. Thus, this study used the theoretical framework to study the correlation between the effects of changes in the futures palm oil price with the performance of Palm Oil Plantation Index in Malaysia and Indonesia. There is only one theoretical framework that has been developed to study the correlation for both countries. The variables have been developed for the theoretical framework in order to study whether there are any correlations exist. Prior to that, the dependent variable to look into for this study in the case of Malaysia is FTFBMPM and its independent variables are 3-months FCPO price, 6-months FCPO price, and 9-months FCPO price. Meanwhile, in the case of Indonesia, the dependent variable to look into for this study is Indonesia Palm Oil Plantation Index and its independent variables are 3-months FCPO price, 6-months FCPO price, and 9-months FCPO price. Below is the network

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