Foreign Direct Investment in Pakistan

Running head: INTERNATIONAL BUSINESS ACROSS BORDERS
International Business across Borders
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INTERNATIONAL BUSINESS ACROSS BORDERS
Executive Summary
Pakistan has tremendous opportunities as far as foreign direct investment is concerned. The
foreign direct investment in Pakistan poses lucrative opportunities and there should be an
increase in the policies that fosters FDI. This report would explain the different factors in the
external environment of the country and its impact on GDP. The various natural resources and
factor endowments which create competitive advantage in Pakistan would be discussed in detail.
The existing trade policies, barriers, systems of Pakistan would be explored. The current
standards of foreign direct investment would be analyzed in detail.

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INTERNATIONAL BUSINESS ACROSS BORDERS
Table of Contents
Introduction......................................................................................................................................3
General Overview of Pakistan.........................................................................................................4
PEST analysis of Pakistan...............................................................................................................5
National resources and factor endowments which create competitive advantage in Pakistan........6
Foreign Currency and exchange influences of Pakistan..................................................................7
Existing trade policies, barriers, systems of Pakistan......................................................................8
Current standards of Foreign Direct Investment.............................................................................9
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................12
Bibliography..................................................................................................................................14

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INTERNATIONAL BUSINESS ACROSS BORDERS
Introduction
The foreign direct investment (FDI) is considered as the investment (form of control of
the ownership of the business in one country), which is controlled by another entity located in
another foreign location (Bilawal et al. 2014). The foreign direct investments encompass the
broad range of mergers, acquisitions and the expansion of businesses in foreign countries. The
FDI is one of the main parameters that need to be considered for the investment opportunities.
There are several emerging markets in the world which has the capability of meeting the
standards of a developed nation but are currently considered as developing nation (Salvatore
2014). These include the markets which have enormous potential for future investments and have
rapid growth in their gross domestic product (GDP). The emerging markets do possess a hedge
capital of over $121 billion. There is a per capita income between 10% and 75% in the emerging
countries (Bilawal et al. 2014).These countries are also characterized by tremendous economic
growth, which has reduced their income gap with the advanced countries.
The selected emerging country for the purpose of this study is Pakistan. There have been
tremendous developments in the business marketplace of Pakistan and there has been an increase
in the market inflows of the country (around $ 300- $500 million) (Dabla-Norris et al. 2015).
The international entities have the option to invest in the Pakistan market as per their foreign
portfolio and weight. This report would discuss the different parameters that would determine the
profitability of the country for rapid investment. The general overview of the country would be
given along with the different political, economic, technological and other factors. The national
resources creating competitive advantages would also be underlined. The foreign currency as
well as exchange influences would be discussed along with the existing levels of FDI.