An assignment on critical analysis of FDI policy and ImportExport policy In Bangladesh
MGT-405: International Business
Submitted to:
Mohammad Shariat Ullah
Assistant Professor
Department of Management
University of Dhaka
Submitted by:
Tapash Chandra Paul
Roll: 35
Section: A; Batch: 17th
Department of Management
University of Dhaka
Submission Date: March 23, 2014
Table of Contents
Pages No
(A) Foreign Direct Investment in Bangladesh
1.0 Introduction
1.1 FDI and its Concepts
1.2 Importance of FDI
1.3 Opportunities of FDI in Bangladesh
1.4 Major Obstacles to FDI in Bangladesh
1.5 Suggestion to Attract FDI in Bangladesh
1.6 FDI Policymakers Must Consider the Following Issues
03
03
03
04
04-05
05-06
06-07
(B) A Review of Import
…show more content…
57.3% of the population is under 25, providing a youthful group for recruitment. The country has consistently developed a skilled workforce catering to investor‟s needs.
English is widely spoken, making communication easy.
Strategic Location, Regional Connectivity and Worldwide Access: Bangladesh is strategically located next to India, China and ASEAN markets. As the South Asian
Free Trade Area (SAFTA) comes into force, investors in Bangladesh will enjoy dutyfree access to India and other member countries.
Strong Local Market and Growth: Bangladesh has proved to be an attractive investment location with its 146.6 million populations and consistent economic growth leading to strong and growing domestic demand.
Low Cost of Energy: Energy prices are the most competitive in Bangladesh.
Transportation on green compressed natural gas is less than 20% of the diesel price.
Proven Export Competitiveness: Bangladesh enjoys tariff-free access to the European
Union, Canada, Australia and Japan. In Europe, Bangladesh enjoys 60% of the market share and is the top manufacturing exporter amongst 50 least developed countries.
Since Australia’s first free trade agreement (FTA) with New Zealand in 1983, Bilateral and Multilateral FTA’s have been a great advantage and focus in securing economic prosperity for Australia. Australia’s two-way trade in goods and services was A$616 bn in 2012. Australia has seven FTAs currently in force with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New Zealand) and Malaysia. Together, these countries account for 28% of Australia’s total trade, which displays the great benefit of bilateral FTAs to the Australian economy. Additionally, there are four bilateral FTA negotiations currently in place, two of which are substantial trading partners; China, being Australia’s largest export market (A$78.7 bn) and Japan, being Australia’s second largest export market (A$49.8 bn). The Japanese Free Trade Agreement has been negotiated, and will be a great benefit to the Australian economy, especially the agricultural sector, for example tariffs on beef
Brazil is a country who practices free trade, but with access to limited partners and members. They have been a member of the Free Trade agreement since 2010 now with Egypt.
The Buying and selling, importing and exporting of goods and services, between two or more countries that have no limits or quotas or barriers or unbalanced tariffs is the dictionary definition for a free trade agreement (FTA). There are both advantages and disadvantages attached to FTA’s which is shown in figure 8.0.
The focus of this investigation will be “To what extent was the trade embargo by the USA responsible for Japanese military actions in 1941?” which will analyze the actions taken by US to hinder the expanding power of the Japanese and evaluate how these actions provoked by US affected Japan to the point where they launched a full invasion on US Pearl Harbor. Thus, the Memorandum For The Director, the memorandum written by McCollum Memo on October 7, 1940 given to FDR and the article, How U.S. Economic Warfare Provoked Japan’s Attack on Pearl Harbor by Higgs Robert are sources of particular value to this investigation, due to the information and thoughts they provide on the actions US take against Japan and Japan’s condition either through first-hand
Since 1993, China has experienced uninterrupted trade supplies and in 2013, China has overtaken the US as the world’s largest trading nation. As an economy highly integrated into the global trade system, the country benefited from a steady improvement in its term of trade since 2000. The country has multiple bilateral and multilateral trade agreements that opened new markets for its product. A Free Trade Agreement (FTA) between China and ASEAN nations which came into effect in the beginning of 2010, created the world’s third largest free trade area in terms of nominal GDP. China established FTA with nations like Korea, Peru, Pakistan, Singapore and etc.
The countries involved in the free trade agreement are China, Japan, Korea, US, Germany, Thailand and Malaysia. Majority of the countries
Even though Canadian government are showing protective approach presently because of several factors that have affected the land, and has taken the country 's wealth to other country. But some believe that because of the foreign investment the wealth of the country has increased, and this has contributed to the overall development of the Canada and the world. Today, there are so much investment done and this looks like it is going to increase in future, and this has showed sign of rejection from the country’s environmentalists because it is taking away the natural resources and polluting the environment. Even though the nation has been benefited, there is contrary feeling towards it. On the other hand, government are taking steps to make sure that too much power or all assets are not handled by foreign companies. But some economists believe the rules and regulations of the government in the past has benefited and supported foreign firms rather than domestic firms, because they were trying to cut down the expenses and increase profit in the form of tax. So, the Gray report puts forward the following policy which suggest Canadians to posses high command over the business and environment, increase the profit and reduce the harm of foreign direct investment, and to hold and expand Canadian control where there is need and can be controlled. The problem that worries the government in the past was foreign investors take domestic
The United States, Mexico, Canada constitute the North American Free Trade Agreement (NAFTA), which in principle has eradicated all the barricades to trade among these states and developed a large North American market. Myriad economic advancements have taken place because of this treaty and are intended to enhance business in the region. Some of the most significant advancements encompass the removal of tariffs and also import and export shares; the establishment of government procurement markets to corporations in the other two countries; a rise in the opportunity to make savings in each other's state; an increase in the experience of travel among nations; and the eradication of limitations on agricultural produces, energy goods and auto
Around the world there is a growing system of free trade agreements (FTAs). High-quality free trade agreements can have a significant part in assisting global trade liberalisation. There is considerable discussion concerning a possible FTA between Australia and China. If a fair trade agreement occurred between Australia and China then tariffs would be expected to be eliminated on almost all trade between the two countries. An FTA between the two countries would involve taking into consideration the domestic income and employment impacts on each sector. It would be essential to ensure that non-tariff agreements applied to both counties and did not contradict that trade and economic benefits of tariff elimination. An FTA should go beyond each country’s commitments in the World Trade Organization (WTO) by addressing, to the extent possible, non-tariff measures and increasing transparency in goods trade.
In business it is essential for owners to consider important factors when mapping out their business objectives. Economics used as a tool to solve coordination problems. They include what and how much product to produce, how to produce their product, and for whom they are producing. In order to effectively answer these questions, economics is used. Colander (2006) describes economics as “the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (p. 4). The foundation of economics is based on several factors that assist in understanding an economy.
CAFTA eliminates most trade barriers on all types of businesses, big and small. This results in more direct foreign investments to the region. By opening trade barriers, new opportunities for small business arise since they can afford to be in the market. A large percentage of exports to the US are already under a free trade zone since the passing of the Caribbean Basin Trade Partnership Act in 1984 (Beehner), but CAFTA will give the US the same opportunity of having a free trade zone with these countries. CAFTA aimed at reducing the trade deficit in the region and, in fact, the agreements regulations turned it into a surplus. CAFTA has been at the center of great debate, but the
Free trade areas, FTA, are economic integration arrangements in which barriers to trade (e.g. tariffs), exchange of goods and information among member nations are removed. It is arguable to say that fair trade aims to create equilibrium between LEDC's, less economically developed countries and developed nations in terms of trading activities and ethics. In saying this, free trading between more economically developed countries and LEDC's will mean
In 1994, the leaders of the thirty-four democratic countries of the Western Hemisphere launched the process of creating a Free Trade Area of the Americas (FTAA). The FTAA will be established by 2010 with the aim of gradually eradicating barriers to trade and investment in the region. The final characteristics of the FTAA will be determined through negotiations by government officials from the thirty-four participating countries. The trade issues that are presently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Guiding principles for these negotiations
As of 2003, Singapore initiated a bilateral trade agreement with Australia known as SAFTA (Singapore Australia Free Trade Agreement). "SAFTA offers greater opportunities in goods and services to a wide range of Australian exporters, furthers strengthens trade and investment links, eliminates Singapore's tariffs and provides cheaper inputs for Australian businesses on a range of products." (Austrade 2008). A main feature of this bilateral trade agreement relevant to Nudie is the removal of all tariffs on Australian exports to Singapore, eliminating an expense that would affect profit margin or pricing of Nudie products.
Improving the value of exports is the primary goal of Thailand’s international trade policy. The Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) was established as an effective cooperative strategy for gaining market advantages through regional market integration. Thailand aims to capitalize on trade agreements by networking and entering partnership with neighboring countries. Currently, Thailand’s cross-border trade in the Greater Mekong Subregion (GMS) plays a crucial role in globalization, because it facilitates rapid and convenient trade and investment. Countries seek new export markets to disperse the risk of domestic market concentration, as evidenced by the economic recessions affecting