...BRAC UNIVERSITY Assignment Topic Balance of Trade and Balance of Payment with special reference of Bangladesh Submitted to Dr. Shah Ahsan Habib Prepared by: Student Name: Marshal Richard Student ID# 10364057 Program: MBA Course: BUS 510: International Business Date of Submission: 22 April 2012 Bus 510: International Business Introduction Bangladesh is one of the fastest growing economic countries among the LDC’s country. According to the International Monetary Fund, Bangladesh ranked as the 42rd largest economy in the world in 2011 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leath. An easy way to understand any country's economic scenario is through its Balance of Trade (BOT) and Balance of Payment (BOP) figures. Balance of Trade shows the difference between the total amount of incoming and outgoing currencies through import and export. Balance of Payment (BOP) is a summary of economic activities between the residents of a country and the rest of the world during a given period, usually one year. The...
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...Balance of Trade and Balance of Payment with a special reference of Bangladesh Introduction Bangladesh is one of the fastest growing economic countries among the LDC’s country. According to the International Monetary Fund, Bangladesh ranked as the 42rd largest economy in the world in 2011 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leath An easy way to understand any country's economic scenario is through its Balance of Trade (BOT) and Balance of Payment (BOP) figures. Balance of Trade shows the difference between the total amount of incoming and outgoing currencies through import and export. Balance of Payment (BOP) is a summary of economic activities between the residents of a country and the rest of the world during a given period, usually one year. The main purpose of keeping these records is to inform government authorities about the overall international economic position of the country in order to assist them in arriving at decisions on monetary and fiscal policy, on the one hand, and trade and payments policy...
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...Following the rapid accumulation of foreign exchange reserves in recent months, there has been a growing interest in Bangladesh on the alternative uses of its reserves. However, different reserves adequacy measures based on global best practices confirm that its reserves holding is not markedly higher than what is required. The country’s reserves stand higher than the adequate level only when one considers the current account aspects of reserves benchmark which is perhaps appropriate for the country as its financial system is still autarkic. The dynamics in its balance of payments account also supports the fact. The paper highlights the fact that Bangladesh’s reserves build-up is the result of an ‘investment drought’ in the country. This is partly due to its underdeveloped financial systems, and partly due to other structural problems in the economy – entailing difficulties in properly channelling national savings to investments. As the Bangladesh central bank’s sterilised intervention increases, so will its cost of reserves accumulation. The reason is the interest rate arbitrage between Bangladesh and the United States. The United States government securities market, that absorbs the lion’s share of developing economies reserves, has been offering lower yields following the collapse in interest rate in the country in recent times. Nevertheless, the apparent spread between the United States Treasury and Bangladesh Treasury rates might be not that high in real terms if one weighs...
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...Chapter : 1 Introduction Bangladesh suffers a huge trade imbalance with India. Apart from the large size of the economy, maintenance of a high protectionist trade regime by India in the forms of tariff and non-tariff barriers have contributed to this imbalance. While Bangladesh has progressed much ahead of India along with its liberalization of trade, India remains slow. Both Bangladesh and India are two major countries of the SAARC and have a long common historical past and similar cultural and social evolution. As far as trade relation is concerned, India is the 2nd largest trading partner of Bangladesh just after USA in 2003. India’s position is at the top for Bangladesh’s imports from the world (IMF: Direction of Trade Statistics, June 2004). Therefore, an analysis of current trade status between the two nations, obstacles and opportunities for mutual trade expansion is very critical for economic development of both countries, especially of Bangladesh, as Bangladesh has been suffering from historical trade deficit with India since its independence. The trade deficit has been increasing exponentially since the recent past. Official data show that compared to 1983, trade deficit in 2003 is more than 46 times higher1 (IMF: Direction of Trade Statistics). This growing deficit is a cause of serious concern for Bangladesh and has important economic and political implications. Hence the importance of the study is realized, and it is expected that the study will help policy makers...
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...ASPECTS 2.1 2.2 2.3 2.4 2.5 2.6 2.7 INTERNATIONAL TRADE – EXPORT & IMPORT LICENSING FRANCHISING JOINT VENTURES ACQUISITIONS FOREIGN SUBSIDIARIES FDI IN INTERNATIONAL BUSINESS CHAPTER THREE – BANGLADESH PERSEPECTIVE 3.1 INTERNATIONAL BUSINESS MODES USED IN BANGLADESH CHAPTER FOUR - CONCLUDING REMARKS 4.1 CONCLUDING REMARKS REFERENCES © Ferdous Mahmud Shaon, Student ID: 12164052 1|P age CHAPTER 1 - INTRODUCTION BACKGROUND If we spend a day looking around us, the importance of international business will become very obvious. We don't have to look far to see this. For example, if we have a mobile phone or MP3 player, then we can quickly find out at where they were made. What about the computer that was used to prepare this article, or the printer that was used for printing? When we eat, how much of the food we consume was actually produced in Bangladesh? In short, our lives and living standards are heavily influenced by the amount of international business and trades, we conduct with the rest of the world. Due to remarkable initiatives in regard of financial and trade liberalization over the last three decades, there has been remarkable increase in the volume of international business and trades. In Bangladesh, the policy of trade liberalization & free market economy in the 1980s has created both challenges and opportunities for our economy. Bangladesh continues to suffer from a lowgrowth, high-poverty syndrome. However, Bangladesh has a large labor force willing to...
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...Introduction Bangladesh characterised by high population density, low resource base, recurrent natural disasters and persistent socio-cultural instability has come a long way since its independence in 1971. The country has performed well especially in recent years, showing that a country can achieve significan human and social development at relatively low levels of income along with creating strong fundamentals and future growth. The integration of developing and least developed countries with the global economy increased sharply in the 1990s with change in their economic policies and lowering of barriers to trade and investment. Foreign direct investment (FDI) is expected to benefit poor countries such as Bangladesh in a number of ways. Firstly, it supplements domestic investment which is low due to lack of resources in these countries. Secondly, FDI is expected to generate employment, transfer, increase domestic competition and bring other positive externalities such as transfer of good practices. Bangladesh offers attractive investment opportunities to foreign investors and has adopted policies to attract FDI into the country. In fact Bangladesh seems to offer one of the most liberal FDI regimes in South Asia. The economic model was developed based on the past behavior of GDP and the external sector. It indicated that FDI is the sector having the most significant impact on GDP and aid the second most significant. While imports negatively affect economic growth, exports have...
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...Major Determinants and Hindrances of FDI inflow in Bangladesh: Perceptions and Experiences of Foreign Investors and Policy Makers An assignment on Major Determinants and Hindrances of FDI inflow in Bangladesh: Perceptions and Experiences of Foreign Investors and Policy Makers Submitted To: S. M. Zahidur Rahman Associate Professor Submitted By: Tasnuba Nowrin ID-090316 Fatema Khatun ID- 090349 KHULNA UNIVERSITY Business Administration Discipline BBA Program 4th Year, 1st Term Course Title: Financial Management and Institution Course No: FIN-4203 September 10, 2012 Summary on previous article Foreign Direct Investment (FDI) is considered as a crucial component for economic development of a developing country. Countries that are lagging behind to attract FDI are now formulating and implementing new policies for attracting more investment. The determinants which play as a driving force for attracting FDI are geographical location, cheap labour cost, and government attitude towards liberalization of the existing laws of the host country, skilled manpower, incentives for investors, and exemption of taxes etc. According to Bangladesh Board of Investment Handbook (2007) Bangladesh offers an attractive investment climate compared to other South Asian Economies. But among the emerging economies India and China are the desired choice for investment (Baskaran and Muchie, 2008). FDI is considered as an important tool for economic development in a developing country. If...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/2045-4457.htm SAJGBR 2,1 Profiting from poverty: ethics of microfinance in BOP Linda M. Sama and R. Mitch Casselman Department of Management, Peter J. Tobin College of Business, St. John’s University, New York, New York, USA Abstract Purpose – This paper seeks to examine the ethical dilemmas that emerge when offering microfinance services in BOP markets. Design/methodology/approach – Utilizing the ethical lenses of deontology, teleology, virtue ethics and moral relativism, the paper builds on prior research on ethical issues in BOP markets and the ethics of microfinance to highlight the specific stakeholder impacts facing MFIs. Relevant literature and examples from practice are utilized to illustrate the different ethical perspectives. Findings – In general, many of the key dilemmas represent themselves in the extreme poverty segment of the BOP where commercial business models have the least traction. Research limitations/implications – Propositions are developed for the corrective actions in the paper which might allow future research to uncover differences in intervention success in different BOP markets. Practical implications – The discussion of potential interventions for the various stakeholders may ameliorate criticisms of MFIs, suggest opportunities for cross-sectoral partnerships and improve outreach to the poorest of the poor. Social implications – For each issue...
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...IMPACT ON BANGLADESH ECONOMY “Globalization was supposed to bring unprecedented benefits to all. Yet, curiously, it has come to vilified both in the developed and developing world”—Joseph E Stiglitz, Making Globalization Work, 2006. - PROF. DR. M A JALIL State University of Bangladesh ABSTRACT Today all the modern and developed and developing countries are more or less within the fold of globalization. Bangladesh with its expanding sway of exports and imports is no exception to that. Globalization is increasingly becoming more and more popular, because most of the countries see their better fortune in this arrangement. Globalization covers a wide range of issues, economic, political, cultural, etc. There are scopes of win-win gains of the involved countries in their dealings. Since the issue of globalization is more a dream than reality, an effort was made to make the readers more aware about the issue, so that they take more interest in implementing the nobler ideas of globalization. Bangladesh has been trying to bring structural changes in her economy- increasingly expanding the contributions of industries in GDP, trade liberalization, boosting up exports, exporting more manpower in abroad, encouraging them in sending remittances, and alluring the investors (both foreign and non-residents of Bangladesh) for DFI. The country found the results encouraging and more efforts will be rewarding. Recently, Bangladesh has taken efforts to diversify her trade, find out ...
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...Table of Contents 1.0. EXECUTIVE SUMMARY 4 2.0. INTRODUCTION 6 3.0. TEA PRODUCTION IN BANGLADESH 9 3.0.1. BASIC FACTS OF BANGLADESH TEA INDUSTRY 12 3.0.2. CHARACTERISTICS OF BANGLADESH TEA 12 3.0.5. GRADES OF TEA 13 4.0. EXPORT OF TEA 17 5.0. MAJOR TEA IMPORTING COUNTRIES FROM BANGLADESH 28 6.0. PROSPECTS OF BANGLADESHI TEA IN THE INTERNATIONAL MARKET 28 7.0. MAJOR COMPETITORS IN TEA MARKET 31 7.0.1. INDIA: THE LARGEST TEA CONSUMER 34 7.0.2. STILL HEAVILY PROMOTED TO DEFEND FROM ALTERNATIVES 34 7.0.3. UNILEVER: THE CLEAR MARKET LEADER 35 7.0.4. TATA TEA: AMBITIONS IN INTERNATIONAL MARKETS 35 7.0.5. CHA BARS: PREMIUM TEA AS A LIFESTYLE CHOICE 36 8.0. PROBLEMS RELATING TO TEA EXPORT AND TEA MARKET EXPANSION 36 9.0. SUGGESTIONS 39 10.0. CONCLUSION 40 11.0. BIBLIOGRAPHY 42 1.0. EXECUTIVE SUMMARY Today, tea is the second most consumable beverage in the world after water. A total of 3,200,000 tons of tea were produced worldwide in 2004. India, China, Sri Lanka and Kenya, in that order, are the major producers of tea leaves. The USSR, Poland, Egypt and Pakistan emerged as major markets for Bangladeshi Tea. These ‘captive’ markets ensured protection to the industry and whatever, irrespective of quality, found its way to these markets. The price received for Bangladeshi tea was higher than its actual value in the open international market. Hence we lost our position as a supplier to those markets e.g. the U.K. who found alternative sources of similar...
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...Block IV MACROECONOMICS – II UNIT 17 Inflation 1-14 UNIT 18 Banking and Money Supply 15-31 UNIT 19 International Trade and Balance of Payments 32-50 UNIT 20 Economic Indicators 51-62 UNIT 21 Business Cycles 63-71 UNIT 22 Economic Growth, Development and Planning 72-84 Economics for Managers Expert Committee Dr. J. Mahender Reddy Vice Chancellor IFHE (Deemed to be University) Hyderabad Prof. Y. K. Bhushan Vice Chancellor IU, Meghalaya Prof. Loveraj Takru Director, IBS Dehradun IU, Dehradun Course Preparation Team Prof. Ramalingam Meenakshisundaram IFHE (Deemed to be University) Hyderabad Ms. Pushpanjali Mikkilineni IFHE (Deemed to be University) Hyderabad Mr. Pijus Kanti Bhuin IU, Sikkim Ms. Preetaq Dutta Rai IU, Jharkhand Ranchi Prof. S S George Director, ICMR IFHE (Deemed to be University) Hyderabad Dr. O. P. Gupta Vice Chancellor IU, Nagaland Prof. D. S. Rao Director, IBS, Hyderabad IFHE (Deemed to be University) Hyderabad Ms. Hadiya Faheem IFHE (Deemed to be University) Hyderabad Mr. Mrinmoy Bhattacharjee IU, Mizoram Aizawal Prof. Tarak Nath Shah IU, Dehradun Mr. Manoj Kumar De IU, Tripura Agartala © The ICFAI University Press, All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from The ICFAI University Press, Hyderabad. Ref. No. Eco Mgrs SLM – 09...
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...PART-1 1. Concept of globalization: Globalization means the coming together of different societies and economies via cross border flow of ideas, finances, capital, information, technologies, goods and services. The cross border assimilation can be social, economic, cultural, or political. But most of the people fear cultural and social assimilation as they believe this would have a negative impact on the existing culture of their society. Globalization therefore has mostly narrowed down to economic integration and this mainly happens through three channels; flow of finance, trade of goods and services and capital movement. Globalization is a term that includes a wide range of social and economic variations. It encompasses topics like the cultural changes, economics, finance trends, and global market expansion. There are positive and negative effects of globalization - it all comes as a package. Globalization helps in creating new markets and wealth, at the same time it is responsible for extensive suffering, disorder, and unrest. The great financial crisis that just happened is the biggest example of how negative globalization can turn. It clearly reveals the dangers of an unstable, deregulated, global economy. At the same time, this gave rise to important global initiatives, striving towards betterment. Globalization is a factor responsible for both repression and the social boom. What happens when there is a growing integration of economies across the globe? Majorly...
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...Socio-economic Impact of Remittance on Households: A Study on Khulna City Md. Ashif Hossain Economics Discipline Social Science School Khulna University Khulna, Bangladesh August, 2013 Socio-economic Impact of Remittance on Households: A Study on Khulna City …………………………………… Md. Ashif Hossain Student Number: BSS 0 9 1 5 0 8 Session: 2011-2012 Supervisor ……………………………………. Sk. Sharafat Hossen Assistant Professor Economics Discipline Khulna University Khulna, Bangladesh A Thesis Paper submitted to the Economics Discipline of Social Science School, Khulna University, Bangladesh in partial fulfillment for the BSS (Hons.) in Economics degree August, 2013 Socio-economic Impact of Remittance on Households: A Study on Khulna City ………………………………………… (Mohammed Ziaul Haider, Ph.D) Head Economics Discipline Social Science School Khulna University August, 2013 Statement of Originality Socio-economic Impact of Remittance on Households: A Study on Khulna City The findings of this Thesis are entirely of the candidate’s own research and any part of it has neither been accepted for any degree nor is it being concurrently submitted for any other degree. ………………………………. Md. Ashif Hossain Student Number: BSS 0 9 1 5 0 8 Session: 2011-2012 August, 2013 Acknowledgement First of all I express my heartfelt gratitude to supreme creator and ruler of the world Almighty ALLAH who has given me the opportunity to conduct my education...
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...Trends of Foreign Direct Investment in Bangladesh CHAPTER ONE Background of the Study 1. Introduction 1.1 Introduction Foreign Direct Investment (FDI) is considered as one of the vital ingredients for overall development process of a developing Bangladesh. country like Industrial development is an important pre-requisite growth country. of for a economic developing is Bangladesh basically a country of agrarian economy. For her economic development, industrial economy is imperative. So Bangladesh is gradually moving from agrarian economy to industrial economy. In the age of globalization, it has become a burning issue to exchange views, ideas, capital and human resources. Government of Bangladesh is trying to create a favorable investment environment through introducing economic policies, incentives for investors, promoting privatization and so on. Therefore, the contribution of FDI is necessary in the enhancement of a country‟s economic growth. Researchers have marked FDI as an important factor in accelerating economic success and wealth of a country as well as a door in creating jobs, facilitating economy, and creating more competitive environment and contributing productivity to the host country. 1 Trends of Foreign Direct Investment in Bangladesh In Bangladesh, FDI plays a significant role in GDP acceleration and economic growth (Mottaleb 2007). FDI has a mentionable role in the modernization of the Bangladesh economy for last two decades. It helps the country...
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...CHAPTER 1 MACROECONOMIC SITUATION [The economy of Bangladesh has successfully tackled the contagion effect of global economic crisis and managed to maintain a sustained growth. According to a provisional estimate, the economy has posted a growth of 6.66 percent in FY2010-11 against that of 6.07 percent in FY2009-10. This performance is mainly attributable to the sustained growth in agriculture sector coupled with recovery of growth in industry sector and the satisfactory performance of service sector. During this period, higher growth in revenue mobilisation and prudent budget management helped maintain macroeconomic stability and discipline in fiscal front. Furthermore, the increasing global demand for goods and services after recovery has helped achieving higher growth in foreign trade, while soaring global food and non-food prices has created inflationary pressure in the country. Alongside adopting various administrative and structural measures, monetary policy instruments have also been used to reduce the inflationary pressure. Moreover, slower growth in remittance inflows and higher import demand due to massive investment in infrastructure sector including the power sector, the current account balance and exchange rate was under pressure during the last quarter of FY2010-11. However, this situation did not emerge as a big challenge to the macroeconomic stability. The foreign exchange reserve remained steady at above US$ 10 billion during this period. Overseas job replacement...
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