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The Relationship Between Indonesia's Gross Domestic THE RELATIONSHIP BETWEEN INDONESIA’S GROSS DOMESTIC PRODUCT AND INDONESIA-BRIC EXPORT IMPORT By Giovanni Francis 014200900061 A thesis presented to the Faculty of Economics President University in partial fulfillment of the requirements for Bachelor Degree in Economics Major in Management January 2013 THESIS ADVISER RECOMMENDATION LETTER This thesis entitled “THE RELATIONSHIP BETWEEN INDONESIA’S GROSS DOMESTIC PRODUCT AND INDONESIA-BRIC EXPORT IMPORT” prepared and submitted by Giovanni Francis in partial fulfillment of the requirements for the degree of Bachelor Degree in the Faculty of Economic has been reviewed and found to have satisfied the requirements for a thesis fit to be examined. I therefore recommend this thesis for Oral Defense. Cikarang, Indonesia, 25 January 2013 Acknowledged by, Recommended by, Irfan Habsjah, MBA, CMA Ir. B.M.A.S. Anaconda B., MT., MSM Head of Management Study Program Thesis Advisor i DECLARATION OF ORIGINALITY I declare that this thesis, entitled “THE RELATIONSHIP BETWEEN INDONESIA GROSS DOMESTIC PRODUCT AND INDONESIA- BRIC COUNTRIES EXPORT IMPORT” is, to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain a degree. Cikarang, Indonesia, 25 January 2013 Giovanni Francis ii PANEL OF EXAMINERS APPROVAL SHEET The Panel of Examiners declare that the thesis entitled “THE RELATIONSHIP BETWEEN INDONESIA GROSS DOMESTIC PRODUCT AND INDONESIA-BRIC COUNTRIES EXPORT IMPORT” that was submitted by Giovanni Francis majoring in Management from the Faculty of Economics was assessed and approved to have passed the Oral Examinations on January 2013. Ir. Erny Hutabarat, MBA Chair-Panel of Examiners IGNP Luhur Korsika, BSc, MIB Examiner I Ir. B.M.A.S. Anaconda B., MT., MSM Examiner II iii ABSTRACT Economic growth has been known as one important factor in determining the country performance. Gross Domestic Product (GDP) can be used to know the economic growth in a country. GDP is actually a number of data collected by the government that shows economic activities in a country within a specific period. One factor inside the GDP is export import. Export and import is a significant indicator in GDP, because export and import is the real activities of selling and buying goods and services across the country. Indonesia has been known as one of the biggest country in export activities. But, now there are some countries that have more power in export. Brazil, Russia, India and China (BRIC) are predicted to be the biggest exporter countries. In this research, the researcher try to analyze the relation between Indonesia’s GDP and export import Indonesia – BRIC countries. The research method in this research is descriptive statistic and simple linear regression method with 32 pairs data. The result of this research shows that there is a significant level of correlation between Indonesia GDP and export import of Indonesia and BRIC countries. The statistical results show a very strong and positive correlation has been happened between Indonesia GDP and export import of Indonesia and BRIC countries. Keywords: Gross Domestic Product (GDP), Brazil, Russia, India and China (BRIC), Export and Import. iv ACKNOWLEDGMENT First, I do really thanks to God for His never ending bless, love and caring in my life. Especially in made me able to finish this thesis and complete my study in President University. In President University, I have met and worked with a lot people, who always help me through every step in this progress of study and learn. Through the first part of this thesis, I would like to deliver my highly appreciation and thanks to these people: 1. To My parents, grandma and families who always support me in many ways, their caring and love always by my side as always need. 2. To Mr. Ienjo and Mr. Purwanto as my thesis supervisor, Miss Filda and to all lecturers who has given me a lot of useful advice, guidance and encouragement with patience and knowledge. 3. To Evan Dewabrata who always support me in any condition with a bunch of care, patience and understanding. 4. To International Business 2009, especially Andrea, Setiawan, Andi who become my solid team in class and to all class mate during my study in President University. Also to my friends, Ima’a, Yemoy, Cinthia, Jasmine and to International Relation class 2009. 5. To PUSU 2010 and 2011, who helped me to build my self through every experience.To PUSU 2011 Finance member, Echi, Mike and Wahyu as we learned together in team. 6. To my PUCATSO, Dimas, Oktaf, Marina, Pidi as part of President University Catholic Society, and family in President University. Thanks for all sad and happiness. Keep in touch! 7. To President University, to become a place for me not only to study my bachelor degree, but also help me to develop my self through very nice lecturers, friends and environment. Finally I would like to address my thanks and apology to everyone that I could not mention one by one. May God bless us! v TABLE OF CONTENTS PANEL OF EXAMINERS APPROVAL SHEET ...............................................................i THESIS ADVISER RECOMMENDATION LETTER..................................................... ii DECLARATION OF ORIGINALITY ............................................................................. iii ABSTRACT .......................................................................................................................iv ACKNOWLEDGMENT ..................................................................................................... v TABLE OF CONTENTS ...................................................................................................vi LIST OF TABLES .............................................................................................................ix LIST OF FIGURES ............................................................................................................ x CHAPTER I ........................................................................................................................ 1 INTRODUCTION .............................................................................................................. 1 1.1 Background of the study ............................................................................................... 1 1.2 Problems Identified ....................................................................................................... 3 1.3 Statements of the Problem ............................................................................................ 4 1.4 Hypothesis..................................................................................................................... 4 1.5 Research Objectives ...................................................................................................... 5 1.6 Significance of the Study .............................................................................................. 5 1.7 Theoretical framework .................................................................................................. 6 1.8 Scope and Limitations of the study ............................................................................... 7 1.8.1 Scope of the study ...................................................................................................... 7 1.8.2 Limitations of the study ............................................................................................. 7 1.9 Definition of terms ........................................................................................................ 8 CHAPTER II ....................................................................................................................... 9 LITERATURE REVIEW ................................................................................................... 9 2.1 Previous Studies ............................................................................................................ 9 2.2 International Trade ...................................................................................................... 10 2.2.1 The Classical Theory ............................................................................................... 11 2.2.2 The Modern Theory ................................................................................................. 12 vi 2.2.3 International Trade Barriers ..................................................................................... 15 2.3. International Business ................................................................................................ 18 2.3.1 Export - Import ........................................................................................................ 19 2.3.2 International Investment .......................................................................................... 22 2.3.3 Other Forms of International Business .................................................................... 23 2.3.4 Advantages and Disadvantages of Different Modes of Entry .................................. 23 2.3.5 International Business Causes .................................................................................. 25 2.3.6 International Business Consideration ....................................................................... 26 2.4 Economic Growth ....................................................................................................... 28 2.5 Gross Domestic Product.............................................................................................
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