Exporting, Importing, and Countertrade: Studycase of 3M and Pakistan Export Processing Zone
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The document discusses export strategies utilized by multinational companies, focusing on Minnesota Mining and Manufacturing Co. and the role of export processing zones (EPZs) in Pakistan. It emphasizes strategies like hiring local employees and small-scale market entry to boost exports, while also addressing the challenges faced by Pakistan's EPZs in attracting foreign investment and promoting local industry. The document raises questions about whether Pakistan should prioritize local industry development within EPZs over solely emphasizing foreign investment.
Exporting, Importing, and Countertrade: Studycase of 3M and Pakistan Export Processing Zone
- 1. Exporting, Importing & Countertrade Gizti Diah Huzaifah / 320296 Silvio Adriano S.S / 342806
- 2. Management Focus Export Strategy at
- 3. Minnesota Mining and Manufacturing Co.
- 4. Products
- 5. one of the world’s great multinational operations
- 6. over60% firm’s revenues are from outside U.S
- 7. remains a major exporter with over $2 billion in exports with over $2 billion in exports
- 8. EExxppoorrtt eessttaabblliisshh iinniittiiaall pprreesseennccee sales raises sales raises build foreign production build foreign production
- 10. Export Strategy’s Principle FIDO First In Defeat Others getting into market first getting into market first learning about country learning about country learn how to sell before others
- 11. “make a little, sell a little” entering small scale entering small scale very modest investment very modest investment pushing one basic product adds additional product adds additional product Export Strategy’s Principle
- 12. Export Strategy’s Principle hire local employees local sales subsidiary loloccaal l hhirireess bbeetttteerr iiddeeaa local sales subsidiary
- 13. Export Strategy’s Principle Implemented
- 14. Export Strategy’s Principle Implemented formulate global strategic plans for export eventual overseas production eventual overseas production local authorities - way to sell
- 15. office cleaning crews office cleaning crews office product distributor office product distributor “sample the daylights” young women “sample the daylights” Export Strategy’s Principle Implemented
- 16. Conclusion
- 17. Conclusion OOppppoorrttuunnititieiess Concentrated Concentrated Market Market SSmmaalll l SSccaalele HHiriree LLooccaalsls RReellaattiioonnsshhiipp Local Production Local Production Successful Strategies for Export
- 18. Country Focus Export Processing Zones Authority of Pakistan
- 19. An organization under the Ministry of Industries run by An organization under the Ministry of Industries run by a Board of Directors a Board of Directors With the task of creating a network of EPZs (Export Processing Zones) With the task of creating a network of EPZs (Export Processing Zones) Promoting exports for Pakistan’s development Promoting exports for Pakistan’s development goal goal
- 21. Flexibility to carry out all transactions in foreign convertible currencies Promoting Exports Custom tariffs Custom tariffs wwiillll nnoott bbee aapppplliiccaabbllee Specializing in the production of goods and services mainly Specializing in the production of goods and services mainly for export for export Currently there are 12 EPZs in Pakistan
- 22. EPZs attract foreign capital investment EPZs supposed to promote exports
- 23. The EPZs themselves are established in cooperation with private sector companies Offer complete infrastructural Offer complete infrastructural facilities facilities Resulting in attractive zones for FDI
- 24. The growth of Pakistan’s EPZs is in a positive trend, yet it plays smaller role on the overall export The growth of Pakistan’s EPZs is in a positive trend, yet it plays smaller role on the overall export trade trade Out of total $17billion exports, EPZs currently bring in around $250 Out of total $17billion exports, EPZs currently bring in around $250 million per year. million per year. EPZs Trends EPZs Roles
- 25. The question remains: Should Pakistan focus on promoting local industry in its EPZs, instead of emphasizing foreign investment alone? Should Pakistan focus on promoting local industry in its EPZs, instead of emphasizing foreign investment alone? What implications will that have for the country’s economic development?
- 26. PPrroommoottiningg LLooccaal l IInndduussttrryy EEmmpphhaassiizziinngg FFDDII Advantage: Strengthen the country’s economy Advantage: Ease off any risks brought by exporting abroad Drawback: Unfamiliarity of Drawback: Unfamiliarity of foreign, opportunities foreign, opportunities for exporting for exporting Drawback: Drawback: When transfer of payments made, resulting in the deficit When transfer of payments made, resulting in the deficit current account current account
- 27. Ways for local to overcome complexity & diversity in capturing export’s opportunities
- 28. gathering, technical assistance, and financing by: councelin g trade trade associations associations government agencies government agencies commercial banks
- 29. Assigning EMC (Export Management Company) to help local firms export marketing department export marketing department international international department for its clients aaccttiningg aass for its clients department firm firm
- 30. Thank you. Gizti Diah Huzaifah / 320296 Silvio Adriano S.S / 342806