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Pakistan: Multinational Companies

Read the following article and write an analysis focusing on the question below:
•Khan, O.J., & Amine, L.S. (2004), New international business perspectives on Pakistan. Thunderbird International Business Review, 46(5). (AN 14406651).

According to the article, the Musharraf government in Pakistan has firmly backed free market incentives and continued privatization. However, Pakistan remains fraught with numerous pitfalls for MNCs. How might a robust multinational and global market research plan enable MNCs to avoid these pitfalls in Pakistan?

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In accordance with BrainMass rules this is not a hand in ready report but only guidance.

Step 1
The article says that the two leading parties of Pakistan favor free market policies. Specifically the article mentions that the Musharraf government has firmly backed free market incentives and has continued with polices of privatization. The Musharraf government has developed a well established regulatory framework, favoring private and foreign direct investment. Yet there are pitfalls for multinational companies. There is rampant corruption. For expediency MNCs are required to make bribe payments. In addition, the business regulation and laws are cumbersome and mind-numbingly verbose. There are elements in the systems that suggest deviation from the rules and procedures. The strongest challenge that MNCs face while doing business in Pakistan is the pressure to participate in corrupt practices.

Step 2
The first step that robust multinationals should take when entering Pakistan is to stay within official channels. Next the company should establish a reputation for strict ethical conduct. There must be consistency in the approach of the multinational company. Robust multinationals should assert a business culture of their own, consistent with standards in their home country. The demonstration of a clear commitment to resist corrupt practices should eventually yield beneficial results by reducing pressure to conform to questionable patterns of local business.

Step 3
A global market research plan can help multinational companies to avoid these pitfalls in Pakistan. A global market research plan in the ...

Solution Summary

This solution explains how a multinational company can overcome obstacles in Pakistan and perform well. The sources used are also included in the solution.