Applying the DRC (Domestic Resource Cost) Index to Evaluate the Competitive Advantage of Dak Lak Coffee

Abstract

In the past few years, the volatility of the world price market and the intrinsic weaknesses of pro-duction coupled with skepticism from experts as well as households had effects of coffee produc-tion [1], that's why the purpose of the article is to use index DRC (Domestic Resource Cost) to con-firm the effectiveness of the coffee plantations in Dak Lak, through DRC index we not only assess competitive advantage of the coffee over other crop products in Dak Lak but also can find agents that affect competitiveness and find a way to enhance the competitiveness of products. The result of the research confirms that comparative advantages of coffee products are very sensitive to fluc-tuations in the price of coffee exports.