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Pakistan Suzuki manufactures a line of Suzuki cars in Pakistan. However they came under government scrutiny for the following practices. Car engines were imported from

 


Pakistan Suzuki manufactures a line of Suzuki cars in Pakistan. However they came under government scrutiny for the following practices. Car engines were imported from Suzuki Japan on credit. Raw materials and parts were purchased locally from Pakistan with a 90 days credit line with major suppliers. In turn the company would take 100% advance payment for cars from customers (through a network of dealerships), and took 6 months to 9 months to deliver the car.

What do you think the government of Pakistan found objectionable in this scenario? Who is really funding the making of each unit of the car ? Explain.

 

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