Exporting, Importing & Countertrade

Gizti Diah Huzaifah / 320296Silvio Adriano S.S / 342806

Export Strategy at

Management Focus

Minnesota Mining and Manufacturing Co.

Products

one of the world’s great mult inational operations

over

60%firm’s revenues are from outside U.S

remains a major exporterwith over $2 billion in exportswith over $2 billion in exports

ExportExport establish initial presenceestablish initial presencesales raisessales raises

build foreign production

build foreign production

Export Strategy’s Principle

Export Strategy’s Principle

FIDOFirst In Defeat Others

getting into market firstgetting into market first

learning about

country

learning about

country

learn how to sell before

others

learn how to sell before

others

“make a l i t t le, sell a

l i t t le”entering

small scaleentering

small scalevery modest investment

very modest investment

pushing one basic

product

pushing one basic

product

adds additional product

adds additional product

Export Strategy’s Principle

hire local employees

local sales subsidiary

local sales subsidiary local hireslocal hires better ideabetter idea

Export Strategy’s Principle

Export Strategy’s Principle Implemented

formulate global strategic plans

for export

Export Strategy’s Principle Implemented

eventual overseas

production

eventual overseas

production

local authorities -

way to sell

local authorities -

way to sell

office cleaning

crews

office cleaning

crews

office product

distributor

office product

distributor

young womenyoung women

“sample the daylights”

“sample the daylights”

Export Strategy’s Principle Implemented

Conclusion

Conclusion

OpportunitiesOpportunities

Successful Strategies for Export

Concentrated Market

Concentrated Market

Small ScaleSmall Scale

RelationshipRelationship

Hire LocalsHire Locals

Local Production

Local Production

Export Processing Zones Authority of

Pakistan

Country Focus

An organization under the Ministry of Industries run by

a Board of Directors

An organization under the Ministry of Industries run by

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 goal

Promoting exports for Pakistan’s

development goal

Promoting Exports, how?

Custom tariffs will not be applicableCustom tariffs will not be applicable

Flexibility to carry out all transactions in foreign convertible

currencies

Flexibility to carry out all transactions in foreign convertible

currencies

Promoting Exports

Specializing in the production of goods and services mainly

for export

Specializing in the production of goods and services mainly

for export

Currently there are 12 EPZs in Pakistan

EPZs attract foreign capital investment

EPZs supposed topromote exports

The EPZs themselves are established in cooperation with private sector companies

Offer complete infrastructural

facilities

Offer complete infrastructural

facilities

Resulting in attractive zones for FDI

Resulting in attractive zones for FDI

The growth of Pakistan’s EPZs is in a positive

trend, yet it plays smaller role on the overall export

trade

The growth of Pakistan’s EPZs is in a positive

trend, yet it plays smaller role on the overall export

trade

Out of total $17billion exports, EPZs currently bring in around $250

million per year.

Out of total $17billion exports, EPZs currently bring in around $250

million per year.

EPZs Trends

EPZs Roles

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?

What implications will that have for the country’s

economic development?

Promoting Local IndustryPromoting Local Industry Emphasizing FDIEmphasizing FDI

Advantage:Strengthen the

country’s economy

Advantage:Strengthen the

country’s economy

Advantage:Ease off any

risks brought by exporting

abroad

Advantage:Ease off any

risks brought by exporting

abroad

Drawback:Unfamiliarity of

foreign, opportunities for exporting

Drawback:Unfamiliarity of

foreign, opportunities for exporting

Drawback:When transfer of payments made,

resulting in the deficit current account

Drawback:When transfer of payments made,

resulting in the deficit current account

Ways for local to overcome complexity & diversity in

capturing export’s opportunities

business counseling, information gathering, technical assistance,

and financing by:

counceling

trade associations

trade associations

government agencies

government agencies

commercial banks

commercial banks

Assigning EMC (Export Management Company)

to help local f irms

export marketing

department

export marketing

department

international department

international departmentacting asacting as for its clients

firmfor its clients

firm

Thank you.Gizti Diah Huzaifah / 320296Silvio Adriano S.S / 342806