UK AND PAKISTAN

Comparison between United Kingdom and Pakistan

Comparison between United Kingdom and Pakistan

Introduction

In this paper, we will be comparing two countries on the basis of their macro environment factors. These factors include political, economical, social and cultural factor. Countries that are chosen for comparison are United Kingdom and Pakistan. The reason of choosing them was the vast difference between their macro environments.

Discussion

Political Factor

The political situation of Pakistan has always been fluctuating. From past few years the government at national level is stable and then there is no change in the major positions of President and Prime Minister of Pakistan (Romer, 1986). Although, one thing that should be noticed that at regional levels different political parties often argument and fights with each other. These frequent fights often creates chaotic and law and order situation in different cities, which in turn affects the daily business and economic situation of the country. The important thing for any Multi-national would be getting a license and permission to operate in Pakistan. Pakistan currently is in need of foreign investment and promotes international brands to operate in their country. The prospects are that foreign companies would undoubtedly get a license to work in Pakistan. Another important thing to be taken into account is the foreign policy of Pakistan. The part that Pakistan is playing in the war of terrorism and various aspect of relationship with US often affects the foreign policy of Pakistan which in turn affects the relationship of Pakistan with foreign countries. Although, the relationship between the government of United Kingdom and Pakistan is very well and stable, but if any act or measure taken from the side of the UK government affects the relationship then foreign companies may face the challenge in getting the license from Pakistan to operate over there (Government of Pakistan, 2007).

Economical Factor

The economy of Pakistan is on a revival since the last few years beginning 2002. The large government debt, which stood at 82% of GDP in 2002, is now reduced to around 46.2% of GDP in 2009. The economy witnessed a growth rate of more than 6% over the past five year period 2003-07. These macroeconomic achievements allowed the country to achieve fiscal consolidation. The services sector contributes 54.9% to GDP in Pakistan. This is followed by the industrial sector, which contributes 24.3% to GDP and a share of around 20.8% is contributed by the agricultural sector (Federal ...