The use of correspondence analysis and cluster analysis to the perception related to the international commerce: the case of South-Brazilian furniture industry and the FTAA barriers

Abstract

The main goal of this study is to analyze the perception of the high administration of companies in the furniture industry of Brazil's South region concerning threats of the Free Trade Area of the Americas (FTAA). Correspondence Analysis and Cluster Analyses were applied due to the use of categorical data. The main results are that the high administrations of furniture companies are favorable to a general concept of a free trade treat, but not to the immediate adoption of the FTAA. At the same time they consider that the main competitor countries in the FTAA are USA, Mexico and Canada. It was also verified that the high administrations attribute more importance to the external barriers than the internal barriers. However, it is inferred that this difference between external barriers and internal barriers is probably biased by the organizational culture of the companies that usually prefer to indicate problems of which other organizations are responsible than its own fragilities, because this would imply in changes in the company - like changes in the organizational culture, more investments, and other changes that almost always lead to short term traumas. The main barriers cited by the high administrations were: the exchange policy, the image of Brazil abroad and the image of Brazilian's furniture abroad. The variables of the so called "Brazil-cost" group such as taxes; seaport costs and cost of capital were indicated as important.