Standards and export performance in developing countries

In turn, these costs and benefits will be influenced by the resource capacity of the firm, the markets in which it operates and the nature and size of possible target markets. [...] With its exports valued at US$8.6 billion in 2005, Pakistan is one of the largest textile and garment exporters in the world, the bulk of - 3 - which is to the European Union (EU) and the United States (US) (World Bank, 2006 p.32).1 The textile and garment market is highly competitive and price sensitive with large-scale buyers dictating quality specifications and price to their suppliers. [...] For example, after inspections by the European Commission highlighted poor food safety controls in the fish and fisheries product sector, in 2005 the Pakistani government imposed a ban on fish exports to the EU in order to avoid the imposition of sanctions by the Commission and to provide the time needed to make 1 The EU and US are Pakistan’s largest trading partners accounting for 25 percent and [...] For example, the extent of potential gain from implementing a quality management standard could be impacted by the type of standard, while the synergies in implementing the standard could be dependent on the number of different markets in which a firm operates and the intensity of implementation relative to industry standards and competitors. [...] Although the sector in which a firm operates is an important element of the context in which decisions about the commitment of resources and innovation is made, it is the firm which makes the investment decision and the firm which enjoys the rewards of innovation.