International Business Of Pakistan  

By: Madina Mazlomyar & Mehak Ali

Part One:

Name of Country​: The country we decided to work on is Pakistan

Capital City:​ The capital city of Pakistan would be Islamabad

Population:​ There are an estimated 204.73 million people in Pakistan as for population.
Languages​: The most common two languages spoken in the population of Pakistan would either
be Urdu and English. As for the rest of the population Punjabi, Saraiki, Pashto, Sindhi, Balochi,
Gujari, Kashmiri, Hindko, Brahui, Shina, Balti, Khowar, Dhatki, Haryanvi, Marwari, Wakhi and
Burushaski is spoken however in many distinct places around the country.

Religions​: Islam is the state religion of Pakistan, and about 95-98% of Pakistanis are Muslim.
Pakistan has the second-largest number of Muslims in the world after Indonesia. The majority
are Sunni with an estimated 5-20% Shia.

Currency​: 1 Pakistani Rupee equals to 0.0085 CAD

Main Export​: Exports in Pakistan continue to be dominated by cotton textiles and apparel.

Main Imports: ​Imports include petroleum and petroleum products, chemicals, fertilizer, capital
goods, industrial raw materials, and consumer products.

Do they export and import from Canada: ​Pakistan's top imports are Refined Petroleum
($7.04B), Crude Petroleum ($2.88B), Palm Oil ($2B), Petroleum Gas ($1.84B) and Cars
($1.35B). And the top export destinations of Pakistan are the United States ($3.5B), Germany
($1.9B), China ($1.85B), the United Kingdom ($1.46B) and Afghanistan ($1.39B).

   
   
 
 
 
 
 
 
 
  
Part Two:
​Costco Wholesale Corporation 
The company we are taking to Pakistan is going to be Costco

​Give a brief description of what that business does: 

Costco, in full Costco Wholesale Corporation, American administrator of markdown stores of
the sort known as a warehouse, in which large amounts of products are sold at profoundly
limited costs to people who have the membership and pay a yearly enrollment charge. It is
presumably the most prominent retailer on the planet. Bringing a Costco to Pakistan can enable
people to purchase all the household required items all from one store. A Costco store regularly
conveys market things and a constantly changing choice of other products, including some
extravagance merchandise. For example, when looking up a warehouse store in Pakistan you will
find nothing except for outlet stores that do not correlate to a warehouse. Pakistan isn't a very
wealthy country, therefore, bringing something that people need will result in a successful
business. Considering Pakistan is a second home to me and because I've been there several times,
I think Costco would be what most people would demand if they knew Costco existed. Costco
provides us with products such as clothing, food, electronics, things that people use in there
everyday lives. It has been mentioned that "Costco members trust that they are going to get a
good deal on whatever they buy," Campbell said. "I think the fact that it has been doing that for
decades has enabled to withstand the online onslaught," mentioned on business insider. Taking
Costco with us to Pakistan also implies that we will take the gas station with us. Costco also
provides us with cheap and affordable gas. The store offers two sorts of gas that are restrictive to
its individuals or others with a Costco gift voucher: premium gas and standard gas from its mark
name, Kirkland. Diesel is likewise accessible in certain areas. Also, Costco's gas contributions
profit the store. As gas is a common buy, it's a viable method to drive pedestrians to the
warehouse. It is additionally a decent method to draw in individuals and keep them loyal. Costco
is commonly recognized as a warehouse store.
 ​What products/services of the business would translate  
​well in the new country?   
Healthy food is a major thing that Pakistan needs to improve on. Fresh Fruits and clean food
(meals) are a must when bringing in a Costco. It is considered that South Asian food is
recognized as the most unhealthy foods in the world. Oil, salt, sugar, saturated fats, and high in
calories are all things that can be found in most Pakistani foods. That's why a lot of Pakistanis
end up with diabetes and heart attacks. Whereas Afghans, Iranians, Greeks have healthier
traditional foods. It usually depends on if you want to be a healthier human being. Although
when your living in an unclean country and you are very poor this results in you eating the food
that the country provides you with. Therefore I believe when Costco comes to Pakistan we will
provide them with a variety of healthy foods. Costco should sell its products in Pakistan just like
how the company would sell it in Canada, although if they want to make more money they
should sell more traditional foods because that's the demand of the customers. Because the
people of Pakistan only eat traditional foods, Costco will begin to provide that to the customers,
resulting in business success. Pakistan is a country considered as the world’s sixth-most
populous country with a population of a surpassing 212,742,631 people. Whereas Canada has a
population of 37.06 million. When an enormous new warehouse comes out in a foreign country
the company is intended to make a higher profit because the company is well-known and
innovative. Therefore I believe we should consider the demands of customers in Pakistan for the
success of our business.
 ​What products/services of the business would be  
​difficult to incorporate into the new country? 
Products that would be difficult to incorporate in Pakistan would be anything related to winters
such as winter clothing and heaters. Pakistan is a very warm country although it only gets cold in
the mountains. Winter gear would be a difficult product to incorporate in the country because it
is seldom utilized. Considering all Costcos sell the same products we will have some products
that will not sell because of the different climate conditions. Moreover, we may have poor
customer service, because Pakistan doesn't have a warehouse store and it would be arduous to
find experienced and well-working employees. How will you be able to identify if that person is
a criminal? Its nothing like Canada there's no such thing as managers being able to see people's
criminal backgrounds or employees getting a police check. When moving a huge warehouse to a
whole different country you have to think about the difficulties this will endure such as, which
products will sell well and what type of employees will I require? Furthermore products like
heaters, snowshoes, shovels, and snow blowers. Anything that correlates with winter garments
and gears will be difficult to sell. The currency would also be a huge issue because 1 Pakistani
rupee equals to 0.0085 CAD. If we try selling products at the same price (Candian Dollars) but in
rupees then the people of Pakistan will think Costco is only for wealthy people just like how we
think Fortinos is more pricey than other grocery stores. Something else that you might find
difficult to incorporate in Pakistan is probably going to be the time zones and how we decide to
carry Costco to Pakistan, it can get a little hard because this is a multinational corporation. There
are locations mostly everywhere and if you either run into any problems or need more resources
or supply, then there won’t possibly be any contacts because the time zones are different and
perhaps the other locations might be either closed or the time is just different for when they open
and close.

 
 
 
​How do you think your company would mesh with the culture of 
the new country? 
People will stop following their own culture and especially with the way they dress, eat, and just
how they live. Their lifestyles will be very different from how it used to be. That’s because the
new products we will be selling will set new trends that will have consumers want to grasp a
hold of the product. For example, perhaps we are selling a new T-shirt and jeans in our market,
people will stop going to other stores to buy their traditional clothes instead. Costco can bring
many people into the community, although you seem to think this would be bad for society.
However, it can improve and develop many other things within the environment. People will
have a much different lifestyle and they will be able to adapt to the lavish lifestyle. Furthermore,
people will start coming closer to the community because we now have more convenient
incorporations nearby where you can get everything at an affordable rate.
 
Part 3: 

​What barriers would you run into if you tried  

​to start a business in this country?
Advantages of Multinational Corporations in Developing Countries:

Multinational corporations provide an inflow of capital into the developing country. For
example, the investment to build the factory is counted as a capital flow on the financial account
of the balance of payments, and this capital investment can help the economy develop and
increase its productive capacity. One of the best ways to increase the level of economic growth is
to provide an inflow of capital from abroad, and known from the Harrod-Domar model of
growth, it suggests that this level of investment is very important if we want to determine the
level of economic growth, and one of the best ways to increase the level of economic growth is
by providing an inflow of capital from abroad and even developing countries.

Now if we don’t know already, Multinational corporations provide a lot of employment.

However, wages do seem to be very low compared to Western standards. As for the people in
developing countries, they might see these new jobs as better to work at than a capital farmer
with an even lower income. Now economies in south-east Asia have been seen with rising their
wages in the most recent decades, which shows us that the low wage economies can eventually
develop. We also have a lot of Multinational firms that may be able to help improve
infrastructure in the economy. They might just be able to improve the skills of their workforce as
well, and as for foreign investments, they may arouse spending in infrastructures such as roads
and transport. However, Multinational firms do help to diversify the economy away from relying
on primary products and agriculture, and most times they are subject to volatile prices and
supply.

The Disadvantages of Multinational Corporations in Developing Countries:

Environmental costs are a big one when it comes to Multinational companies and it can
outsource parts of the production process to developing economies with weaker environmental
legislation.

Skilled labour also comes in line when it comes to undertaking any new projects, and
multinational corporations might have to employ skilled labour from other economies rather than
others that are from the developing economy. This means that even if there are great jobs out
there, they aren’t taken over by local workers instead and the investment itself turns out to be
very diffused.

Something else we might not be so familiar with is that there is a very large component of
multinational investment in developing economies that are seeking out raw materials – those
include oil, diamonds, rubber and many more costly metals. Also, there turns out to be an
extraction of raw materials that can cause environmental externalities, such as polluted rivers and
also with the loss of natural landscapes. Therefore, local communities in developing countries
can face perhaps widespread disruption, but that too of only limited compensation for many of
the valuable materials.

​Who would be the target audience in the new country? 

Mostly, if we were to be carrying a multinational corporation, specifically Costco, I believe that
the location would be somewhere in the middle of a developing community as well. Because not
only are we trying to set new trends within the country but also within smaller areas so things
like these spread out and are known to the local community. Of course, we wouldn’t have our
new Costco location be placed up high in the mountains where the population rate is low.
However, instead, we would place it somewhere in between residential areas and other local
places so we have a bunch of facilities for ourselves but the community will too as well. Now at
this point, people are changing the way they live and it’s completely different from how it used
to be back then, and now we have more western standards and approaches towards things. So if
we start selling things that work here very well along with the supplies people there need, it
might set our business for good and we will make a lot when it comes to investments and
marketing. Also, of course in the area, there will be larger families and when it comes to
groceries it does seem to be pretty costly. So if we set some affordable prices for family-sized
products, for example in food, we will have our actual target audience start to come in.

Have other businesses tried to enter this country, how did it go? 
Metro Inc. is known to be a Canadian food retailer which is operating in the provinces of Quebec
and Ontario. But instead, this has also been taken to Pakistan and so far it seems to be doing
great, they have food, clothes, shoes, jewellery, devices, and so much more. And from what I
know, it seems to be very convenient for the customers is that it isn’t that much of a hassle.
Because you go into one store, great prices and you have everything you need right there on the
shelves of that store. Now from what I see too, Metro, for example, has set a lot of employment
which is great because most people are still at this point unemployed. So this also turns out to be
another chance for them to improve. And if you didn’t know already, local companies that are
surrounding this company actually need/have supplies, and that can end up helping us increase
our income as a company, also along with that if we want/need employees, of course, we’ll have
to offer training and that’ll be the only way for us to have skilled workers in our corporation.
Now if you take a look at Metro, it seems to be pretty costly when it comes to products however
the quality turns out to be good as well. And we have a lot of consumers, just because everything
there is with prices that seem reasonable to them from their perspective.

If I were an owner, how would I go about making this happen? 

If I were to be bringing along Costco with me to Pakistan, I’d most definitely be selling products
that suit best according to the weather, culture, religion, and so much more of the community
around my location. If I end up selling things that wouldn’t be much use to Pakistanis but instead
for us people in Canada, I wouldn’t be making much money. This is a developing country we are
talking about, I think that if we bring anything new or different into the market that buyers don’t
see very often, they might just decide to buy that item and the rest of the community will do the
same until we make an investment that is it worth it. Also, it’s not just that we have to pay
attention to, but also how people culturally and religiously see things as. They might not agree
with the fashion trends we might have in countries like the US or Canada. Or perhaps with the
food, we might have, people who want to stick to the traditional foods that they have instead of
buying newer foods this represents that they aren’t closely familiar with food from different
ethnicities/cultures. Because this is a multinational corporation, I’d also be looking at how other
business locations under Costco are doing and what I might have to change to make sure that I
am following under the same line. I’d probably even market and advertise my new business in
ways that would seem to be effective for the people living nearby, and I can even do that by
using billboards and posters, commercial advertisements, and have others sponsor and promote
out corporation so it becomes a well known and a big thing in the community. I’d maybe even do
some research and follow the trends in the market to make sure that my business isn’t falling
apart, but instead, I am keeping it in line so I can be the first one to bring something up for the
rest of the community.

Website Link: 
https://mehakalich1.wixsite.com/mysite

We have also created a website based on our new corporation and we are proud to present our
new Costco Wholesale in Pakistan.

Conclusion​:
In the end, we believe that this unit has taught us a bunch, and international business is actually
bigger than we all think it is. Along with that, we think that we learned a lot about how
businesses work differently in different countries, whether they be stable countries or even
developing countries. To conclude my statement mentioned above, we have learnt all the
different businesses for various countries and we know how they work. Also, with the barriers,
benefits, and how they can affect our society itself. Thank you Mr. Sillet for a well informed and
knowledgeable assignment!