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MGT211 Introduction To Business Assignment 1 Solution Fall 2013

Scenario:
Pakistan’s city Sialkot is the 4th largest economic hub in Punjab after Lahore, Faisalabad and Gujranwala. Sialkot is also known as the mini Manchester because of its quality handmade footballs. The footballs of Sialkot are used in almost all world class football events such as FIFA World CUP, English Premier League, etc. Presently the sports goods industry of Sialkot is supplying products to other countries, directly or indirectly. The major football manufacturing companies of Sialkot such as Taj Mahal Sport, Sublime Sports, Silver Star International and Euro Plus are contributing a very sufficient amount to the GDP of country through its exports. Other important industries in Sialkot include leather garments, surgical, musical and sportswear are all export-oriented businesses and earn huge amount of dollars every year in foreign exchange.
Requirement:
While keeping in mind the above scenario, you have to answer the following questions;
1) Why Pakistani businessmen prefer to export sports goods rather than selling in local market, explain your answer with five logical reasoning? (5 * 2 = 10 Marks)

The name of Pakistan’s sports industry is in all over the world. It is famous on international level. This industry is one of the major foreign exchange earners for Pakistan. It is estimated that more than 75 per cent of the total production is exported every year. In fact, the export demand has acted as the main stimulus for the rapid growth of this industry because of care that goes into designing, manufacturing and selecting of raw materials. Below are the five logical reasons due to the Pakistani businessmen prefer to export sports goods rather than selling in local market.
1.Businessmen getting good price due to export.
2.Local market can’t be given their demanding amount.
3.It is a big industry in Pakistan and all the material can’t be sold in local market.
4.Abroad countries prefer Pakistani’s sports goods.
5. Access in international market, it is better for businessmen and our country.




1.Businessmen are getting good price due to export.
Businessmen are getting good price due to export. They sell the sports material to the abroad countries usually in USD and the conversion rate of USD in pak rupees is very high and due to this they take to earn many profit. Value of export sports goods in being increased day by day in millions and in 1997-98 was $384 million export amount. Now the volume of exported sports goods have been increased from above amount. The list of countries of which Pakistan export the sports goods is being expanded continuously. Pakistan is exporting the sports goods to 90 countries. However, the principal importing countries are Germany, USA, UK, France and Italy. Others were Spain, Netherlands, Hong Kong, Denmark, Canada, Belgium, Dubai and Chile.

2.Local market can’t be given their demanding amount.
Local market can’t be given to the businessmen their demanding amount, because than other countries in Pakistan the sports events arrange very least. The sports material is not sold according to their demand. In other countries due to many sports events, they sell additional material and earn more profit than local market.

3.It is a big industry in Pakistan and all the material can’t be sold in local market.
Sports industry is a big industry in Pakistan. Pakistan’s name is famous in all over the world due to this industry. Due to football material, the city of Sialkot say mini Manchester. Many types of sports material is to be prepared in Sialkot. Businessmen are selling this material in local market also. They are fulfilling the demands of our sports material. Arrear material they are selling abroad countries or export and getting a great profit.

4.Abroad countries prefer Pakistani’s sports goods.
Abroad countries prefer Pakistani’s sports goods, because these are best. In the international market, India, Japan, Taiwan and South Korea are the main competitors of Pakistan. They are supplying their products at lower prices. While India has an advantage of cheap labour and raw material Taiwan, Japan, and South Korea have semi-automotive and mechanised units and are always engaged in introducing cheap sports goods such as metal rackets and cricket bats etc. But the quality of Pakistani’s sports goods is more better from them. Due to this reason our sports material is to be liked on international level. International sports boards prefer the Pakistani’s sports goods during sports events.

5. Access in international, it is better for businessmen and our country.
Due to better sports material Pakistan has been got access and good level in international market and it is better for both businessmen and for our country. Businessmen are getting profit due to export and there are being famous on international level and the relations of Pakistan are being better of such countries of which we are selling sports goods. For make it more better government should take change in export laws, customs duty, taxes and excise duty.




2) Do you think it is necessary for Pakistani companies to assess external forces before accepting the foreign order? (5 Marks)

Yes, in my view it is necessary for Pakistani companies to assess external forces before accepting the foreign order. The Countries law and order situation should be analyzed before taking a foreign order as it can affect the completion of the order on time.

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