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MGT520 - International Business - Lecture Handout 45

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Learning Objectives:

  • Export & Import
  • Strategies for import and export
  • Status of Pakistan in Exports and Imports
  • FDI and Pakistan
  • International Business and Pakistan

Export Assistance, Pakistan:

  1. Export Promotion Bureau
  2. State bank of Pakistan as export refinance.
  3. Chambers of Commerce and industries as facilitators.
  4. Government as announcing special incentive to exporters like rebates etc.

Export Assistance, International:

  1. Exporters in the US can draw upon two types of government-backed assistance to help finance their exports; the Export-Import bank and export credit insurance provided by the FCIA.
  2. The Export-Import Bank is an independent agency of the US government whose mission is to provide aid in financing and facilitate exports and imports and the exchange of commodities between the US and other countries.
  3. In the US, the Foreign Credit Insurance Association (FCIA) provides export credit insurance. The FCIA provides insurance policies protecting US exporters against the risk of nonpayment by foreign debtors as a result of commercial and political risks.

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MGT520 - International Business - Lecture Handout 42

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Once companies decide to enter markets, they must then analyze data to determine their market potential in each country and their marketing mix to reach the potential.

Total Market Potential:

To determine potential demand, managers first estimate the possible sales of the category of products for all companies and then estimate its own company’s market-share potential. In order to do so, they estimate per capita consumption and move it along a trend line as per capita GNP increases.

Gap Analysis:

Once a company is operating in a country and estimates that country’s market potential, it must calculate how well it is doing there. Gap analysis is a method for estimating a company’s potential sales by identifying market segments it is not servicing adequately.

Read more: MGT520 - International Business - Lecture Handout 42