...Introduction Global financial crisis started when sub prime mortgage market of United States collapsed. Since the global financial crisis took place, many developed and developing countries have been going through recession. It was believed that ongoing global financial crisis will not affect Bangladesh economy as badly as it can to other developed economy because economy of Bangladesh is not so dependent on international capital or foreign investment. But, still there are and will be some shocks of ongoing global financial crisis available for Bangladesh economy. So, Bangladesh economy will be affected by global financial crisis. Global financial crisis might reduce overseas job opportunities and export earnings. Global financial crisis may turn into a recession. Economy of developing countries including Bangladesh is already going through recession. Bangladesh is a low income country. If global financial crisis continuous then economy of Bangladesh will be suffering. Negative impacts of global financial crisis are beginning to show on the increasingly globalizing economy of Bangladesh. Export growth rate of Bangladesh has turned negative. Export of non-apparels items is being reduced. Depreciation of currencies by competing countries caused erosion of Bangladesh’s competitive strength in the global market. Remittance earnings could be badly affected in near future because number of job seekers going abroad halved as some countries either revoked or have stopped issuing...
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...Global Financial Crisis: Likely Impact on Bangladesh [Abstract: The current financial crisis that originated in the United States and quickly spread to Europe and Asia could be a global crisis soon. Reckless lending by banks and financial institutions and slack regulatory system were at the root of the crisis, which is perhaps the gravest since the Great Depression of the 1930s. Amid a severe credit crunch, the rich economies have entered into a deep recession. IMF economists predict the global economic growth to fall from 5.6% in 2007 to 3.9% in 2008, and to 3.0% next year. Billions of dollars pumped by the rich and the emerging economies to bail out the distressed banks or to boost their economies have failed to stop the rot. Bangladesh is apparently immune from the crisis, its economy not being very tightly linked with the rest of the world. It has been enjoying a relatively healthy growth of exports, industrial activity and remittances. Yet, a prolonged recession in the rich countries may cause a slowdown in exports, inflows of remittances, foreign aid and FDI, thereby hurting GDP growth. IMF has said that GDP growth in Bangladesh this year will be lower – 5.5% instead of the officially projected 6.5%, if the global recession lingers. Bangladesh policy makers will need to stay alert to the possibility of the economy being hit by the global slump and adopt appropriate mitigating measures.] Introduction The United States economy is now experiencing a severe credit...
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...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 there have been positive impacts of this global phenomenon - through liberalization, privatization and globalization (LPG). Due to globalization, there has been significant flow of inward foreign direct investment. MNC companies...
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...The Global Financial Crisis: Impact on Bangladesh A.K.M. Atiqur Rahman Professor Department of Economics North South University Overview I. Introduction: Genesis and Spread of the Crisis. II. Global Recession and LDCs III. Impact on Bangladesh IV. Recession and Export from Bangladesh V. Exchange Rate Movement VI. Remittance VII. Import and Tax Revenue VIII. Overall Impact IX. Policy Implications I. Introduction: Genesis and Spread of the Crisis. • Root: Mispricing in the Massive Credit Default Swap Market • Sub prime Mortgage: Bank transferred credit risk to third party through the process of securitization ( MDS, CDO) • Reckless growth of sub prime mortgage-lower yield in risky mortgage • Arbitrage drove the yields on all bonds & loans down • Expansion of consumer credit, housing price bubble Intriduction continued • Unsustainability of Credit default swap and subprime mortgages exposed • Housing bubble burst → mortgage default → foreclosures→ bank and insurance failure→ credit freeze • Spillover of financial crisis to real economy through virulent credit crunch →depressed aggregate demand • Sub prime mortgage default led to spillover effects around the world (Europe and emerging economies) via an elaborate network of derivatives Continued . Global consequence of the crisis includes: • Sharp rise in Unemployment in the US, Job loss in few other countries • Sharp fall in the stock market price around the globe, current...
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...Preliminary Draft February 20, 2010 THE GLOBAL ECONOMIC CRISIS AND SOUTH ASIA By Dr. Akmal Hussain, Distinguished Professor, Beaconhouse National University INTRODUCTION What began as a financial crisis in 2008 rapidly metastasized into a global economic crisis that pushed the world economy into the deepest recession since the Great Depression of the 1930s. In this paper we will examine the origins and nature of this crisis in the context of the dynamics of world capitalism, indicate the policy challenges in the process of recovery and analyze its impact on South Asia. I. STRUCTURAL CHANGE AND FRAGILITY OF THE FINANCIAL SPHERE In the process of its growth the world economy has undergone a structural change in the post war period in terms of two important features: (i) The dominant form of the production unit of goods and services that emerged in the post war period was the large multinational corporation (MNC) in contrast to the large national corporation in the late 19th century and the small firm in the late 18th century.1 The MNCs were not only able to sell goods and services on a global scale but were able to achieve internationalization in their production processes, such that different components of a particular good could be manufactured in their facilities in different countries to take advantage of country specific resource 1 For a more detailed analysis of Growth and Structural Change in the Global Economy since the Industrial Revolution...
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...FIN 382 COMPANY ANALYSIS GROUP ASSIGNMENT PREPARED FOR : PUAN NORSALIZA BINTI ABU BAKAR PREPARED BY : KHAIRIL AZMAN BIN RADZALI 2010459076 DHARWIS BIN HASNIM 2010699142 MUHAMMAD FAIDI BIN SAFARRUDIN 2010408132 ELMIRUSHUDA BINTI AMERUDIN 2010248112 FAZLIAH NOOR BINTI MOHD FOUZI 2010834506 GROUP : JBM114 6A DUE DATE : 21st DECEMBER 2012 ECONOMY ANALYSIS 1.0 WORLD ECONOMY The world economy can be evaluated in various ways, depending on the model used, and this valuation can then be represented in various ways. It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a misnomer, since, while definitions and representations of the "world economy" vary widely, they must at a minimum exclude any consideration of resources or value based outside of the Earth. For example, while attempts could be made to calculate the value of currently unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities on Mars would not be considered a part of the world economy – even if currently exploited in some way – and could be considered of latent value only in the same way as uncreated intellectual property, such as a previously unconceived invention. It is common to limit questions of the world economy exclusively to human economic activity, and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services,...
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...Impact of Globalization on Bangladesh In: Computers and Technology Impact of Globalization on Bangladesh Impact Of Globalization On Bangladesh Globalization has become a buzzword in the new era of international relations. Basically it is a process of expanding trade and commerce all over the world by creating a frontier-less market. But now it has had a far-reaching effect on many aspects of life Impact Of Globalization On Bangladesh : Impact of globalization is obvious in the following spheres : • Impact On Communication : With the impact of high-tech communication media and ultramodern transportation facilities, the world has come closer. Now we can learn instantly what is happening in the farthest region. Countries of the world have become like families in a village. They can share their joys and sorrows like next-door neighbors. • Impact On The Economy : The Impact Of globalization on Bangladesh economy cannot be denied. Like the developing countries of the world our country is getting benefit out of border-less market. Our GDP has increased. Garment industries are considered the foreign exchange earner. In terms of investment, employment and exports, the functioning EPZs(Export Processing Zones) have been greatly successful. • Impact On Modern Technology : Globalization is now largely based on a strong technological foundation. The electronic transfer of information via the internet has now created an instantaneous and inter-connected world of information resulting...
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...to Bangladeshi local NGOs and their documents in related sea level rise. Sea level rise: Impacts on Bangladesh and the role of NGOs Introduction: climate change is one of the most raising issues in contemporary world. Global warming is an important cause if climate change. The temperature of the world is increasing day by day. As a result the ice of arctic areas is melting. And this is raising the sea level. Though the temperature is increasing equally all over the world but all the countries of the world are not equally affected by this global warming. Usually costal areas, islands, and lower lands are mostly affected by this sea level rise. They are flooded badly each year because of this sea level rise. Global warming not only affects the environmental life but also they affect the political economic and infrastructural basis. Bangladesh is one of the most vulnerable countries of sea level rise. As it is a costal and lower land, so here lives and properties are at a severe risk. One of the island of Bangladesh, named South Talpatti Island has already sank because of sea level rise. NGOs role is very important for Bangladesh. NGOs can play vital role in many ways. NGOs can supply knowledge and information through research which is essential for making strategy and action plan for Bangladesh Government....
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...The impacts of the ongoing global recession The impacts of the ongoing global recession on domestic industrialisation, already at a near standstill, have hurt the growth of the Tk 2,000 crore local wire and cable industry, market players said. Power sector and industrial units are the two major consumers of the locally produced cables followed by households. “We are facing a shortage of adequate buyers, particularly with power and industrial ones,” said Fardaws Alam, chief financial officer of Poly Cables, one of the fastest growing cable manufacturers in the country. “Our sales came down by around 60 percent in the January-April period of this year compared to the same period last year,” said Azizur Rahman, chairman of Aziz Cables. Rahman blamed this downtrend on the negative impacts of the global financial crisis. “We are still doing good in power cable sales because we have some supply contracts in our hands,” said Mohammad Enamullah, business development manager of Paradise Cables, one of the largest wire and cable makers in the country. Now the global and domestic gloomy economic situation is a cause for concern for us, he added. Bangladesh had to depend on imported cables until the late 1980s. But the situation has started changing rapidly since 1990s when a good number of companies entered the market, industry people said. Now around 50 companies are engaged in wire and cable manufacturing and meeting the rising domestic demand. Of those companies...
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...IMPACT OF GLOBAL RECESSION ON READY MADE GARMENTS INDUSTRY OF BANGLADESH IMPACT OF GLOBAL RECESSION ON READY MADE GARMENTS INDUSTRY OF BANGLADESH Prepared for: Dr. Muhammad Ziaulhaq Mamun Course Instructor Research Method (K301) Prepared by: Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq Rayhan (ZR-45) Sayan Muhammad Rafi (ZR-48) Rafat Shamim (ZR-51) Ishmam Rahman Abedin (ZR-53) Bushra Barkat (ZR-54) Institute of Business Administration University of Dhaka June 30, 2012 30 June 2012 Dr. Muhammad Ziaulhaq Mamun Professor Institute Of Business Administration University Of Dhaka Dear Sir, Here we present the report “Impact of Global Recession on Ready Made Garments Industry of Bangladesh”. In this report we tried to analyze the current RMG industry scenario and the various factors associated with it which have been influenced by the global financial crisis. We believe our report will facilitate strategic planning for both the decision makers in the market and identify possible counter measures and new possibilities. We hope the report meets your expectations. We will be glad to answer any query about the report. Sincerely yours, Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq...
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...Bangladesh's stock market performance, measured in terms of the stock price index, has been one of the best globally for a number of years. Its upward surge defied global and regional market developments. When almost all markets across the globe collapsed during the global economic crisis, DGEN was perhaps one of the very few which defied the global trend and maintained its upward progression fueled by local developments/conditions. When it started its upward trend in 2007, the market was certainly undervalued, and there were fundamental economic reasons for it to go up. At that time the average Price/Earning (P/E) ratio was in single digit and the market capitalization was less than 10 per cent of gross domestic product (GDP). The sustained upward surge, however, went beyond what could be justified by economic fundamentals by early 2010. Since mid-2010, as the index crossed the 5000 mark, the market has clearly been driven by speculative forces. During the last two-month period leading up to the peak, the index increased by more than 2000 points before crossing the 8900 level on December 5. To put it in proper perspective, the index level was at about 1500 until this recent surge started in 2007. Daily market turnover increased 30 fold about Tk. 1.0 billion to Tk. 33 billion over the three-year period. Clearly, economic fundamentals cannot support this level of valuation gain and turnover, and the market is bound to correct itself once it runs out of steam. The recent...
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...The Global Financial Crisis: Assessing Vulnerability for Women and Children, Identifying Policy Responses Mayra Buvinic World Bank February 2009 The current global financial crisis, on top of recent food price increases (which, while down from their peak last year continue to affect the poor in developing countries), will have serious gender specific consequences for women in poor countries and their children. While women (and men) in most developing countries are vulnerable to increased risk of poverty and hardship, exposure to gender-specific negative impacts are particularly high in a subset of countries. These are countries where pre-existing high infant mortality rates and/or low rates of female schooling, combined with decelerating growth rates, substantially raise the vulnerability of women and girls to the deleterious effects of the crisis. Their situation is even more precarious in the sub-set of countries where limited fiscal resources constrain governments’ ability to cushion human impacts. If left unchecked, these crisis consequences on women will reverse progress in gender equality and women’s empowerment (and in meeting the MDGs), increase current poverty and imperil future development. Fortunately, policy responses which build on women’s roles as economic agents and their preference for investing resources in child well-being can go a long way towards mitigating these negative effects. These responses are good for women and for development–...
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...Inflation Trends and Poverty in Bangladesh CONTENTS ABBREVIATIONS .................................................................................................................ii EXECUTIVE SUMMARY ....................................................................................................iii I. INTRODUCTION ....................................................................................................................1 II.INFLATION A. What is Inflation B .How is it measured C. Inflation and Interest rates D. Inflation and Investments Types of Inflation II. TREND OF MACROECONOMIC PERFORMANCE AND POVERTY REDUCTION INITIATIVES IN BANGLADESH ......................................................2 A. Growth Performance ...............................................................................................2 B. Savings and Investment ..........................................................................................2 C. Inflation ...................................................................................................................3 D. Fiscal Sector Developments ....................................................................................3 E. Macroeconomic Challenges of Bangladesh ............................................................4 F. Medium-term Macroeconomic Framework.............................................................5 G...
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...Techniques And Performance of Dhaka Bank Ltd.” Principles of Accounting: Term paper on “Accounting Practices in Square Pharmaceuticals Limited”. Human Resources Management: Research on “Occupational Safety and Health: Status in the Tannery Industry” Microeconomics: Term paper on “Structure of rice market in Bangladesh”. Principles of Management: Term paper on ‘The Management of Beximco Pharmaceuticals limited”. Managerial Accounting: Term paper on “Analyzing how to Managerial Accounting Practice of Square Pharmaceuticals limited”. Financial Management:- Term paper on “Working Capital Management of Textile Industries in Bangladesh” Production & Operation Management: Term paper on “Production & Operation Management of Shinepukur Ceramics Ltd.” Strategic Management: Case study on Sun Microsystems and General Dynamics: Compensation and Strategy (A) and also develop a case BCG Matrix. Marketing Research: A research on “The Effect of Corporate image in Formation of Customer Loyalty of the Mobile Phone industry in Bangladesh”. Corporate Finance: A research on “The Effect of Dividend Policy in Pharmaceuticals industries in Bangladesh” Financial Markets & Institutions: A report on “Investment Banking Operations of ICB Capital Management Limited”. PARTICIPANT OF THE WORKSHOP Workshop on “Research Methodology” organized by BUP, Recourse person: Dr. Muhammad Z Mamun, Professor, Institute of Business Administration (IBA), University of Dhaka International...
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...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 in Bangladesh’s certain...
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