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In the dynamic world where entrepreneurs compete internationally due to globalization, business decisions are very hard to execute for local entrepreneurs especially when determining sales price for the products. In Indonesia, Asean China Free Trade Agreement (ACFTA), the free trade agreement between Asean countries and China also carries some difficulties to local entrepreneurs especially in Small and Medium Enterprises (SME) as local SMEs still have lack of competitiveness compare with that of Chinese products. Hence, most of the customers have shifted their preferences to Chinese products simply because of its lower price. This phenomenon has impacted local entrepreneurs negatively in terms of competitiveness and losing customer loyalty.
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