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International Finance
Avicular Controls, ACI, should win this deal to expand its market in Asia. Based on the data provided by International Air Transport Association’s (IATA), the report indicated that passenger and cargo traffic would double in Asia by the year of 2010. The increase in the demand of air transportation is an opportunity for Avicular Controls to expand the market in Asia. Not only would the deal benefit ACI from lifting its prestige, but also generating the long term revenue of maintenance. In addition to Avicular, Rockwell Collins and Honeywell had capacity to compete with Avicular. Rockwell Collins had experience dealing with the Pakistani government on several military contracts, and considered the most competitive player to ACI. If ACI could defeat Rockwell Collins and Honeywell to win the deal with PAI, ACI would show its different role in global aerospace industry than Rockwell Collins.
Based on the conversation between Gabriel and Peter, Gabriel thought the acceptance of rupee is an opportunity that changes the way of using dollars as base currency; however, he didn’t consider the Pakistani economy which would lose the profit of the deal. Although Pakistan alleged that the domestic currency is control by the local government, the historical event doesn’t’ support the allegation. Pakistan’s deteriorating trade gap in 1996 had caused a significant drop in foreign currency reserves. The trade gap not only hurt the Pakistani economy but also made IMF activate austerity program, which devalued Pakistan rupee by 7.86%. Beside the historical event showing that the local government has less power over domestic currency than it alleged, current imposition from European Union on anti-dumping fines on Pakistan’s cotton might cause another devaluation of rupee.
Ibrahim Makran Pvt. LTD is a Pakistani company provides service of connecting the foreign company and domestic company. The revenue of Ibrahim Makran Pvt, LTD is charging 10% commission fee of total sales. After

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