Term Paper On International Trade And Investment

Bangladesh is virtually located as a bridge between the emerging markets of South Asia and fastest growing markets of South East Asia and ASEAN countries. With the proposed concept of a "Bay of Bengal Growth Triangle" with its apex Chittagong port extending south-west to Calcutta, Madras and Colombo and the south-eastern arm extends through Yangon, to Thailand, to Penang with the third arm to Colombo, this region should have growing attention of the investment world. Bangladesh has the potential to be an entry port to the region, a potential small scale Singapore, for the region covering Bangladesh, Nepal, Bhutan, eight north-east Indian states (of Assam, Meghalaya, Monipur, Imphal, Arunachal, Nagaland, Mizoram and Tripura) and resource-rich northern Myanmar, a land locked region. Bangladesh is poised to become a regional hub where activities relating to assembling, manufacturing, trading and services, would be some of the areas that are picking up over the years. This geopolitico-economic location of Bangladesh indicates its history of being a nation of sea-farers, traders and suppliers.
Bangladesh offers a competitive location for doing business in terms of costs, inputs, human resources, market access, facilitation etc. Investing in the appropriate sector in Bangladesh would yield higher returns than many other competing locations with lesser risks.

Foreign trade can occur in many ways like Exporting in, FDI and Licensing. Government of Bangladesh set the trade policy aiming to become a export oriented country.

In Bangladesh FDI is allowed in every sector of the economy except in five industries reserved for the public sector such as defense equipment, nuclear energy, forest plantation, security printing and railways. Government of Bangladesh has adopted a number of policies and provided generous incentives to attract FDI into the country.

The aim of the study is to find out the current status and trend of FDI, Exporting & Licensing in Bangladesh and to find out their relative advantages & disadvantages.

Bangladesh has been experiencing a transitory stage from an agrarian economic composition towards an industrial economic structure. Industry has gradually been taking up the major share of the national income. In the last two and half decades, contribution of industry in the GDP nearly doubled to 29.01% while agricultural contribution declined by one-third to 21.77% during the same period. Private sector investment rose significantly to 18.7% of GDP.

Bangladesh offers a competitive location for doing business in terms of costs, inputs, human resources, market access, facilitation etc. Investing in the appropriate sector in Bangladesh would yield higher returns than many other competing locations with lesser risks.
A report entitled “Doing Business in 2007” published jointly by the World Bank and IFC ranked Bangladesh in the 68th position in terms of starting of a business ranking among 169 countries.