Unlocking Business Opportunities: assessing the market potential for Pakistani products in Finnish market

Abstract

The ongoing process of globalization is significantly altering the dynamics of international trade. There is a potential for increasing trade between Finland and Pakistan. In the year 2020, Pakistan's total export value to European Union was 5.5 billion euros, and the proportion of those exports that went to Finland was a meagre 0.43% (Pakistan Business Council, 2021). The potential increase in Pakistani exports to Finland may be attributed to two main factors. Firstly, Pakistan's low production costs and huge population offer a competitive advantage in terms of manufacturing and supply. Secondly, Finland's high level of technological innovation and one of the highest GDP per capita create a favorable market for Pakistani exports. This is an attempt to examine a range of elements that impact market entry and expansion methods, including cultural disparities, trade regulations, and consumer inclinations. The main purpose is to offer a path for Pakistani organizations aiming to build a presence in the Finnish market by doing a thorough market analysis and providing strategic insights. Pakistan has signed trade agreements with many countries and international organisations.

Pakistan is a member of the World Trade Organisation in addition to being a member of the China-Pakistan Free Trade Agreement and the South Asian Free Trade Area. Rice, citrus, mangoes, furniture, cotton fibre, cement, tiles, marble, textiles, apparel, leather goods, veterinary surgical supplies, sports goods, silverware, surgical instruments, equipment, software, carpets, rugs, ice cream, livestock meat, chicken, powdered milk, wheat, seafood, vegetables, processed foods, defence equipment, salt and onyx are the main exports of Pakistan. Additionally, Pakistan produces cement and exports it to a number of Middle Eastern and Asian countries.

On the other hand, Finland exhibits a robust and stable economic condition, characterized by a government that prioritizes the elimination of trade obstacles and the reinforcement of the multilateral trading system. Finland, as a Member State of the European Union, presents an advantageous opportunity for ambitious exporters seeking access to the broader European markets due to its comparatively modest size. The regulations and practices of Finland and the European Union exhibit a significant degree of harmonization. Finland possesses a highly industrialized economy that predominantly operates under a free-market system, exhibiting one of the highest levels of per capita gross domestic product (GDP) in the European region. Finland's geographical positioning in the northern region necessitates a significant reliance on the importation and exportation of many commodities.