...Answer: Foreign Direct Investment (FDI) has been an important part of the economic transition, business liberalization and macro-economic growth story in Bangladesh over the last decade. Since the last decade, there has been a considerable change in global flows of trade and finance including a surge in FDI. Despite being a recent phenomenon, several underlying factors have contributed to increasing the FDI inflow in Bangladesh, such as trade and exchange liberalization, current account convertibility, emphasis on private sector led development, liberalization of the investment regime, opening up of infrastructure and services to the private sector-both domestic and foreign, and above all the interest of foreign investors in energy and telecommunication sector. It is argued that more open trade policies are associated with the presence of foreign firms and economy-wide technological and productivity gains in developing countries like Bangladesh. There also exists evidence of a strong positive correlation between increasing share of FDI in GDP and diversification to high-technology exports in countries that have open trade regimes. Foreign Direct Investment (FDI) has played a key role in the modernization of the Bangladesh economy for the last 15 years. Bangladesh received FDI of $1.13 billion last year compared to $910 million in 2010. This increase of about 25% is higher than the average 23% worldwide growth of FDI. According to the 2012 World Investment Report (WIR)...
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...PROJECT PROPOSAL On Foreign Direct Investment (FDI) PROBLEMS AND PROSPECTS OF FOREIGN DIRECT INVESTMENTS IN BANGLADESH Prepared For Md. Sujahangir Kobir Sarkar Lecturer Department of Agricultural Economics & Rural Development Faculty of Business Administration and Management Patuakhali Science and Technology University Prepared By Ashfaqur Rahman Level - II , Semester - II Roll : 039 , Reg. : 01567 Session : 2007-2008 Faculty of Business Administration & Management PATUAKHALI SCIENCE & TECHNNOLOGY UNIVERSITY Date of Submission: April 30, 2010 TABLE OF CONTENTS 1. Background Information of the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2. Statement of Project Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 3. Objectives of the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4. Justification of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5. Benefits of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....5 6. Methodology of the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 7. Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...
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...Submitted to: Mr. Samir Kumar Sheel Associate Professor Department of Marketing University of Dhaka Submitted by: Name: Id: BBA 15th Batch Department of Marketing University of Dhaka Date of Submission: November 10, 2010 Letter of transmittal November 10, 2010 Dr. Samir Kumer Sheel Associate Professor Department of Marketing University of Dhaka Dear Sir, We the members of group one are truly happy to present our “term paper”on “Investment Environment in Bangladesh”. This term paper was assigned to us as a essential requirement of the ‘Macroeconomics” course in the forth Semester. The Project program was an experience of rediscovering our potentials. This report has given us an opportunity to apply our theoretical expertise, sharpen our views, ideas, and communication skills, and bridge them with the real world of practical experience, which will be a good head start for our future professional career. During the preparation of the report we faced some problems that have been erased out with your propound lecture and assistance in class lecture. Lastly we would be thankful once again if you please give your judicious advice on our effort. Sincerely yours The members of the group “one” BBA, 15th Batch Department of Marketing Our heartiest thanks to all of the people who helped us a lot in terms of completion of this report before, during, and after the working period. Now we would like to acknowledge the Almighty...
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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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...Executive Summary Foreign Direct Investment is one of the vital force to boost up the economy. In this project report I would like to draw a current scenario of Foreign Direct Investment in Bangladesh. In this regard I present the most updated data, avoid the uncompleted data and use the best judgment at the time of presenting the data to better knowing the current trend about the Foreign Direct Investment in Bangladesh. I prepared an overview of “Foreign Direct Investment in Bangladesh” based on secondary data and information. For this specific purpose I collected data and information from various sources like published materials such as the Bangladesh Economic Review, Different articles of Board of Investment (BOI) and Bangladesh Export Processing Zone (BEPZA), Daily Statement of Affairs of different Internet based publication and other books on Foreign Direct Investment in Bangladesh and articles related to Foreign Direct Investment in Bangladesh. I furnished the full contents of the report in eight chapters. I concentrated on arranging and putting the data in such a way that the report progressively anchors to a desired destination of understanding. Introduction Part-1 Investment has acquired considerable emotive force in any country. It is viewed as beneficial on employment creator-as it brings about economic development. It can termed capital flowing from a firm or individual within the country or in one country to a business or businesses in another country involving...
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...Report on Foreign Direct Investment in Bangladesh Executive Summary Foreign Direct Investment is one of the vital force to boost up the economy. In this project report I would like to draw a current scenario of Foreign Direct Investment in Bangladesh. In this regard I present the most updated data, avoid the uncompleted data and use the best judgment at the time of presenting the data to better knowing the current trend about the Foreign Direct Investment in Bangladesh. I prepared an overview of “Foreign Direct Investment in Bangladesh” based on secondary data and information. For this specific purpose I collected data and information from various sources like published materials such as the Bangladesh Economic Review, Different articles of Board of Investment (BOI) and Bangladesh Export Processing Zone (BEPZA), Daily Statement of Affairs of different Internet based publication and other books on Foreign Direct Investment in Bangladesh and articles related to Foreign Direct Investment in Bangladesh. I furnished the full contents of the report in eight chapters. I concentrated on arranging and putting the data in such a way that the report progressively anchors to a desired destination of understanding. Introduction Part-1 Investment has acquired considerable emotive force in any country. It is viewed as beneficial on employment creator-as it brings about economic development. It can termed capital flowing from a firm or individual within the country or in one country...
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...POTENTIALITY OF FDI INFLOW IN BANGLADESH 1. INTRODUCTION Foreign Direct Investment (FDI) is considered as one of the crucial ingredients for fostering economic development of a developing country. Countries that are lagging behind to attract FDI are formulating and implementing new policies for attracting more investment. Even compared to other South Asian countries, FDI inflow to Bangladesh has traditionally been lower. Foreign direct investment (FDI) is investment directly into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is done for many reasons including to take advantage of cheaper wages in the country, special investment privileges such as tax exemptions offered by the country as an incentive to gain tariff-free access to the markets of the country or the region. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. 2. TYPES OF FDI As a part of the national accounts of a country FDI refers to the net inflows of investment. There are two types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or negative). Inward FDI occurs when foreign capital is invested in local resources. The factors propelling the growth of inward...
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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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...Topic Page No. 1. Introduction 1 2. Bangladesh: An Emerging Destination For Foreign Economy 1-10 3. Foreign Investment Opportunities 10-13 4. Current Situation Of Foreign Investment In Bangladesh: 13-19 5. Foreign Investment Trends In Bangladesh 20-34 6. Why Should Foreign Investors Invest In Bangladesh 35-39 7. How Can Our Government Come Forward To Attract Foreign Investors 39-46 8. Recommendation 47 9. Conclusion 48 10 References 48 INTRODUCTION: Bangladesh is now trying to establish itself as the next rising star in South Asia for foreign investment. The government has implemented a number of policy reforms designed to create a more open and competitive climate for private investment, both foreign and local. The country has a genuinely democratic system of government and enjoys political stability seen as a sine qua non for ensuring a favorable climate for investment and sustained development. Bangladesh has been quick to undertake major restructuring for establishing a market economy, with the major thrust coming from the private sector. The country enjoys modest but steady economic growth. Its current development strategy is based on the premise that the creation and distribution of wealth occurs through the acceleration of growth driven by competitive market forces, with the government facilitating growth and making a clean break from the practices of a controlled economy where private investment is constrained. With this end in view...
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...Foreign direct investment And Economic Growth in Bangladesh Internship program at Brac Bank Ltd. Internship Report On “Foreign direct investment And Economic Growth in Bangladesh and Internship program at Brac Bank Ltd.” The Internship report is submitted to the Department of Finance, University of Dhaka for the partial fulfillment of the requirement of BBA program. Submitted to: Department of Finance University of Dhaka Supervised by: Mohammad Jahangir Alam Chowdhury Professor Department of Finance University of Dhaka Submitted by: Zarin Tasnim ID: 17-009 Section: A Department of Finance University of Dhaka Signature of the Supervisor Date of Submission: 7th May, 2015 Letter of Transmittal 7th May, 2015 Mohammad Jahangir Alam Chowdhury Professor Department of Finance University of Dhaka Subject: Submission of Internship Report on Foreign direct investment and Economic Growth in Bangladesh. Dear Sir, It is an absolute pleasure for me to submit the Internship Report titled “Foreign direct investment and Economic Growth in Bangladesh” as a significant part of the BBA program. While making this report, I have experienced a fair knowledge about Foreign direct investment and economy of Bangladesh and its impact on the growth of Bangladesh. I have tried my best to follow your guidelines in every aspect of preparing this report. I have collected what I believed...
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...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 work for low wages resulting in a very competitive...
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...Introduction Globalization has become a sort of fashionable buzz-word. It is quite often said but seldom with the same meaning. Globalisation has been an important factor in accelerating democracy’s growth in recent decades. In this globalized world, rapid development and global proliferation of new technologies and telecommunications, and integration of the world economy through trade and investment, have increased the role and power of regional and global institutions. This promoted and strengthened the spread of democracy while also providing the leverage for good governance. Globalisation impacts on the mode of governance that a country operates either as a symbol of universality or for uniformity. This unstoppable trend has homogenised governance on a global scale while depicting authoritarianism as unproductive political modernity. The concepts- globalisation and (good) governance have dominated international discourse for sometime now. The conceptual ambivalence and ambiguity that hover around them, however, are owing to their multidimensional and multifarious perspectives. Definitions Good Governance Before defining good governance, it is pertinent to define governance in order to use it as a point of departure to fully understand good governance. According to WB governance is the “manner in which power is exercised in the management of a country’s social and economic resources for development”. According to ESCAP governance simply means “the process...
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...Incentives Sufficient? Foreign direct investment (FDI) is increasingly becoming a preferred form of capital flows to developing countries in recent years, as compared to other forms of capital flows. The reasons for this are not hard to seek. In the context of the gloom and despair of the heavy debt burden plaguing these countries, FDI promises to be the bright ray of hope for harnessing capital flows to the country’s economic development without the pangs of capital repayment with interest. In this context Feldstein and Razin (2000) and Sodka (forthcoming) note that the gains to host countries can take several other forms: • FDI allows transfer of capital and technology, which is not possible through financial investment in goods and services. • FDI also promotes competition in the domestic input market • Profits generated by FDI contribute to the corporate revenue in the host country • Operation of new ventures by FDI leads to employee learning in the host country who learn how to manage and operate the businesses. This contributes to human capital development of the host country. • Profits generated by FDI contribute to tax revenues in the host country FDI is different from other major types of external private capital flows in that it is motivated largely by the investor’s long-term prospects for making profits in production activities that they directly control. Foreign bank lending and portfolio investment, in contrast, are not invested...
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...CHALLENGES FOR BANGLADESH Course Name : International Economics SUBMITTED BY: Muhammad Jahangir Alam ID:40814010 14TH Batch MBA (Marketing), University of Dhaka. Date of Submission: 28.12.2010 Introduction Born from the great Liberation War of 1971, Bangladesh is a non-communal, progressive, democratic state that has worked to establish an economy and society free of inequality, and to nurture a culture of democracy and respect for human rights for all fostered by patriotism in all areas of social existence. Along with a tolerant democracy, the aspiration is for a more caring society based on a system of values rooted in the culture and traditions of Bangladesh. The country’s value system will develop as it progresses, and the values will translate from collective to individual perspectives creating a collective drive to work together towards national development. Bangladesh’s heritage, rich in content and diversity, shall have a place in our present and be the anchor for the country’s ambitions. Globalization in the broadest sense implies integration of economies and societies across the globe through the flow of technology, trade and capital. Economic globalization is a process of rapid economic integration between countries that is driven by the increasing liberalization of international trade and foreign direct investment. Liberalization of the economy in Bangladesh seemed an inevitable...
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... Every Business student, as a part of his/her study has to complete some assignments and solve some problems which are very much related to the practical business and economical world. This is a complete study of how the investors are doing business in Bangladesh over years and what will be the course of actions in order to achieve the proper “Investment climate in Bangladesh”. The report is prepared in order to get the knowledge and fulfill the basic requirement to complete the course titled as “Economic Conditions Analysis”. b. Background of the study: Economics is a sea of theories. These theories are the stairway to lift us to a stage from where we can get the entire idea of its different sectors. “Economic Conditions Analysis” is basically theory related course in addition to a mixing of practical incidents to compare theories and its applications. Obtaining theoretical knowledge is only a halfway to reach the target because implementation of theories is the ultimate goal of it. Being a very practical course “Economic Conditions Analysis” requires a large extent of implementation of its theories and procedures in the real life. To meet up this requirement I have prepared the report titled “Investment climate in Bangladesh”. c. Objectives: 1. Broad Objective: The broad objective is to examine investment climate in Bangladesh over years and what should be done for better performance in the upcoming years. 2. Specific Objectives: ...
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