International Business in Bangladesh- an Investment Destination in South Asia

Topics: Investment, Foreign direct investment, Macroeconomics Pages: 22 (5962 words) Published: December 27, 2010
Scope and objective of the study:

The main purpose of the report is to show a concrete Overview of Current International Business Growth & Prospects in Bangladesh. The report will show Private Investment Trend, Investment Incentives Potential Sectors For Investment, Legal security for investment etc.

The information gathered for the report is through the use of primary and secondary sources. The whole information has been gathered from internet, different books, manuals, class lecture sheet etc.

Limitation of the Study:

At the time when I prepare my assignment I face some limitation. These are as follows –

1. There is very short data on international business in Bangladesh

2. Lake of secondary data.

3. I don’t have get enough time for prepare my Assignment because of my job.

Literature Review:

International Business:
International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more nations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next. The conduct of international operations depends on companies' objectives and the means with which they carry them out. The operations affect and are affected by the physical and societal factors and the competitive environment. Operations:

• Objectives: sales expansion, resource acquisition, risk minimization Means:
• Modes: importing and exporting, tourism and transportation, licensing and franchising, turnkey operations, management contracts, direct investment and portfolio investments. • Functions: marketing, global manufacturing and supply chain management, accounting, finance, human resources • Overlaying alternatives: choice of countries, organization and control mechanisms Physical and societal factors:

• Political policies and legal practices
• Cultural factors
• Economic forces
• Geographical influences
Competitive factors:
• Major advantage in price, marketing, innovation, or other factors. • Number and comparative capabilities of competitors
• Competitive differences by country
There has been growth in globalization in recent decades due to the following eight factors: • Technology is expanding, especially in transportation and communications. • Governments are removing international business restrictions. • Institutions provide services to ease the conduct of international business. •...
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