Exporting, Importing, and Countertrade: Studycase of 3M and Pakistan Export Processing Zone Gizti Diah Huzaifah & Silvio Adriano S.S International Business subject Faculty of Economics and Business Universitas Gadjah Mada 2014

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

9. Export Strategy’s Principle

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

20. Promoting
Exports, how?

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