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Business Advantages And Disadvantages

Decent Essays

I work for a multinational company as an international business development consultant. Ms. Jenny Chang, who is the CEO of a Singapore based company, appointed me as a consultant to prepare a report for a new project of her company. Her company developed a new innovative CAD system for designing and weaving wool carpets that can improve the design and manufacturing efficiency significantly. The CEO wants to expand their business in Pakistan. I have following three choices to prepare a recommendation report.
(i) Export to Pakistan from the manufacturing plant in Singapore,
(ii) License a Pakistani firm to manufacture and market the computer system in Pakistan and elsewhere.
(iii) Set up a wholly owned subsidiary in Pakistan.
First option export to Pakistan from the manufacturing plant in Singapore could have drawbacks of transportation cost, trade barriers, tariffs, and market size of Pakistan. Sometimes the transportation cost is too high which makes it impractical to export some products. (Daniels, 2015, p.577). Although many governments are reducing import barriers, but still restricting some imports from other countries. Also, the market size of the country and the scale of technology used in production impose barriers to export. (Daniels, 2015, p.578). Pakistan is developing its modern transport sector speedily. Karachi Port in Pakistan is the trading hub, about 98% major international trade is conducted through this sea port. I think this would be the best and

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