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Political Environment of Bangladesh:

The political system of Bangladesh is followed by representative democracy. Despite being a democratic country the safeguards of democracy are not being exercised properly which have negative impact on business operation. Political unrest is almost a daily occurrence in Bangladesh which hinders the daily national and international trading system of the country. Foreign firms are feared to come in Bangladesh with FDI. Bangladesh is a democratic country in name but not in action.
The following biased democracy safeguards are some of the main hindrances of international business in Bangladesh. Individual right to freedom of expression, opinion and organization are restricted. Media are more or less biased to the current government. There is more or less regular election sometimes major parties avoid election. There are often face to face clashes among the leading political parties. Despite being the court system is independent most of the times its functions are directed by current government. Corrupted political state bureaucracy Corrupted political police and armed force.
This situation does not support entrepreneurship that’s why it can not make a man innovative. That’s why local business can not be strong. To be competitive in international business such political system and government is failing to make local business more efficient and more effective. That’s why Bangladesh is lagging behind in international business competition.

Since that time Bangladesh is facing huge challenges, including a political and economic, serious poverty problems as one of the world's poorest countries, annual floods on its low-lying coasts, power shortages and rampant corruption. However, some recent political and economic developments are encouraging. The economy grew 6.5% during the 2007 fiscal year, following a growth rate of 6.6% in 2006. According to the World Economic Forum Global Competitiveness Report 2007-2008, corruption is seemed to be the greatest problem by companies facing economic development and doing business in Bangladesh. Most of the leaders of the leading political parties are highly corrupted. The leading parties are dominated mostly by the family members of the chairperson of the parties.

Economical Environment of Bangladesh:

The economic system of Bangladesh is characterized by mixed economy in Bangladesh certain sectors of the economy are left to private ownership and free market mechanism while other sectors have significant state ownership and government planning. Once there was a large state sector in Bangladesh but recent tend to privatization has reduced state ownership of various businesses. Some of the recent privatized sectors are airlines, banking, customs etc. this tend to privatization is creating a favorable atmosphere for international business. As foreign firms can invest in the privatized sector there will be a positive impact on the economy of Bangladesh.

Social Environment of Bangladesh:

Social value consists of social custom, practice, religion and social moral standard. Social value shows the moral standard of ours. Without social values we cannot grow up as a complete social man. In the past social values were more conservative, rigid and strong. We all know that Bangladesh is a conservative Muslim country. People used to live a more religious. The young were more respectful to the old and superior. Smoking in front of the superior was forbidden. People used to believe in joint families. But now people are getting more and more liberal. They follow religion in a more relaxed way. Men and women now mix frequently. Our social values are changing fast. There is a clear western influence on our culture and values. Many people now accept western values. The causes of the present social values are satellite, television, globalization, free exchanges among the nations and free trade. There are certain effects of our social values. People now abide by religion in a more relaxed way. Women are now playing a more important role in different parts of our society. As western music, culture, and modes of life are getting more and more familiar with us, our social values are also getting westernized. People now prefer living in a small family. There are frequent exchanges among different communities in our society. Our social values reflect our moral standard, culture and tradition. We should be more alert to maintain these values. If we lose our values, we will have no individual identity as a nation. Our social values show our identity.
Bangladesh is noted for the remarkable ethnic and cultural homogeneity of its population. Over 98 percent of its people are Bengalis; the remainder is Biharis, or non-Bengali Muslims, and indigenous tribal peoples. Bangladeshis are particularly proud of their rich cultural and linguistic heritage because their independent nation is partially the result of a powerful movement to uphold and preserve their language and culture. Bangladeshis identify themselves closely with Bangla, their national language.

Technological Environment of Bangladesh:

The need for faster technological development is increasingly felt in Bangladesh. Development plans of Bangladesh have emphasized science and technological research to develop technologies through adoption of imported technology as well as development of indigenous technologies. As the country is heavily dependent on imported technologies, proper planning is required for its effective transfer through acquisition, assimilation and adoption.
A National Science and Technology Policy has been formulated and adopted by the Government. It has laid down the directions for S and T activities and research, institutional and manpower development. Dissemination and documentation facilities. The National Council for Science and Technology (NCST) determines S and T policies, reviews the activities of different institutions and provides direction towards S and T research and activities.
Technology dimension plays an important role in enhancing the development activities and growth of Bangladesh business environment potentiality. The application of new technologies, particularly computers and software applications, has been a major factor driving productivity growth in recent decades. It is observed that information and communication technologies (ICT) development is running rapidly. Basically, at this moment the business people are much more aware about technology because they know technology can enhance their operation. ICT is seen as an umbrella term for a range of technological applications such as computer hardware and software, digital broadcast technologies such as radio and television, telecommunications technologies such as mobile phones, and electronic information resources such as the world-wide web.
The present government has recognized IT as one of the priority sectors and is providing all support to the private sector to enable them to enter the export market for software and data processing services. Recognizing the bright future of IT, a large number of students, young professionals and businessmen are taking keen interest in acquiring knowledge about computers and its applications. This is reflected in the tremendous enthusiasm generated in the on-going International Computer Show organized by Bangladesh Computer Samity. It is expected that within the next 3 to 4 years, IT applications in Bangladesh would not only spread to various private and public sector offices and industrial units, but Bangladesh would emerge as a regional hub for software development.

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