As a matter of fact, the machine, being so sophisticated will require importation of skills and manpower from the Singapore mother company since they are the ones who are familiar with its operations and can set it up within the licensed company in Pakistan. This makes it easier to have control over the operations of the machine and the levels of output as the technicians will have to be always around to supervise the smooth operation of the system.
Even though the levels of manufacturing in Singapore is above the levels of manufacturing in Pakistan, it still remains to be slightly lower than the surrounding neighbors like Taiwan and South Korea hence the export economy of that region is dominated by non-Singaporean transnational corporations (TNCs) (Gary Dean, 2000). This further emphasizes that the option of exporting from Singapore would be a short-term success since once the technology catches up in the region, there is a likelihood that that the export giants would take over the markets.
The other factor that would make the licensing a better option is the demand that Pakistan has for carpets from the world in general. Indeed, there are several unfinished carpets from other countries like Afghanistan that are transported to Pakistan for final finishes before being exported to other countries. This is due to the expertise that there is on carpet making in Pakistan. The carpets produced in Pakistan are mainly for the export markets particularly to the Western countries which bring in almost 300 million dollars annually catering for an average of 3.4% total export share (All Things Pakistan, 2010).
By 1953, Pakistan was...
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