Inb_304_Assignment_01_L

1. Course: INB304
Course Title: Bangladesh In International Business
Section: 01
Faculty: Prof. Dr Raisul Awal Mahmood.
Lecturer of International Business
Submitted By: Al Noor Aziz Laisha
ID: 1720519
Submission Date: 14th
June 2019

2. Letter of Transmittal
June 14, 2019
Prof. Dr Raisul Awal Mahmood,
Lecturer, School of Business
Independent University, Bangladesh
Subject: Submission of an assignment on Bangladesh’s Export In Selected Countries (USA).
Dear Sir,
With due respect I, the under singed student of IUB have prepared this Bangladesh’s Export In
United States Of America (USA) under this course. Though I am in learning curve, this
Assignment had enabled me to gain insight into the core facts of our country’s Perspective in
International Business. So, it becomes extremely challenging and interesting experience.
I have put all the efforts to summarize my knowledge in this topic in this Assignment to make it
comprehensive and to meet your expectations.
Yours sincerely,
Al Noor Aziz Laisha

3. Table of Contents
Letter of Transmittal 02
Overview OF United Kingdom (UK) 04
Overview OF Bangladesh (BD) 06
Macro-economic trend: 07
Bangladesh–United Kingdom Trade
Relations
10
Conclusion 11

4. Overview OF United
Kingdom (UK)
The economy of the United Kingdom is highly developed and market-orientated.It is the fifth-
largest national economy in the world measured by nominal gross domestic product (GDP),
ninth-largest by purchasing power parity (PPP), and twenty second-largest by GDP per capita,
comprising 3.5% of world GDP.
In 2016, the UK was the tenth-largest goods exporter in the world and the fifth-largest goods
importer. It also had the second-largest inward foreign direct investment, and the third-largest
outward foreign direct investment. The UK is one of the most globalized economies, and it is
composed of England, Scotland, Wales and Northern Ireland.
The service sector dominates, contributing around 80% of GDP; the financial services industry is
particularly important, and London is the world's largest financial Centre. Britain's aerospace
industry is the second-largest national aerospace industry. Its pharmaceutical industry, the
tenth-largest in the world, plays an important role in the economy. Of the world's 500 largest
companies, 26 are headquartered in the UK. The economy is boosted by North Sea oil and gas
production; its reserves were estimated at 2.8 billion barrels in 2016, although it has been a net
importer of oil since 2005.There are significant regional variations in prosperity, with South East
England and North East Scotland being the richest areas per capita. The size of London's
economy makes it the largest city by GDP in Europe.
In the 18th century the UK was the first country to industrialize, and during the 19th century it
had a dominant role in the global economy, accounting for 9.1% of the world's GDP in 1870. The
Second Industrial Revolution was also taking place rapidly in the United States and the German
Empire; this presented an increasing economic challenge for the UK. The costs of fighting World
War I and World War II further weakened the UK's relative position. In the 21st century,
however, the UK remains a great power with the ability to project power and influence around
the world.
Government involvement is primarily exercised by Her Majesty's Treasury, headed by the
Chancellor of the Exchequer, and the Department for Business, Energy and Industrial Strategy.
Since 1979 management of the economy has followed a broadly laissez-faire approach. The
Bank of England is the UK's central bank, and since 1997 its Monetary Policy Committee has
been responsible for setting interest rates, quantitative easing, and forward guidance.
The currency of the UK is the pound sterling, which is the world's fourth-largest reserve
currency after the United States Dollar, the Euro and the Japanese Yen, and is also one of the 10
most-valued[clarification needed] currencies in the world.
The UK is a member of the Commonwealth, the European Union (currently negotiating
withdrawal), the G7, the G20, the International Monetary Fund, the Organization for Security

5. and Co-operation in Europe, the World Bank, the World Trade Organization, Asian Infrastructure
Investment Bank and the United Nations.
Exports
 $412.1 billion (10th; 2016 est.)
Export goods
 Manufactured goods, fuels, chemicals, food, beverages, tobacco
Main export partners
 United States 14.6%
 Germany 10.1%
 Switzerland 7%
 China 6%
 France 5.9%
 Netherlands 5.8%
 Ireland 5.5% (2016)
Imports
 $581.6 billion (5th; 2016 est.)
Import goods
 Manufactured goods, machinery, fuels, food, stuffs
Main import partners
 Germany 14.8%
 China 9.8%
 United States 9.2%
 Netherlands 7.5%
 France 5.8%
 Belgium 5% (2016)
FDI stock
 Inward: $1.196 trillion
 Outward: $1.443 trillion (2016)
Current account
 −£96.2 billion (2015)
Gross external debt
 $7.499 trillion (March 2017)[17] (2nd)

6. Net international investment position
 $575 billion (2016)[
The United Kingdom is the 10th largest export economy in the world and the 11th most complex
economy according to the Economic Complexity Index (ECI). In 2017, the United Kingdom exported
$395B and imported $617B, resulting in a negative trade balance of $222B. In 2017 the GDP of the
United Kingdom was $2.62T and its GDP per capita was $43.3k.
The top exports of the United Kingdom are Cars ($45B), Packaged Medicaments ($18.4B), Crude
Petroleum ($17.8B), Gold ($16.1B) and Gas Turbines ($14.6B), using the 1992 revision of the HS
(Harmonized System) classification. Its top imports are Cars ($45.5B), Gold ($34.3B), Crude Petroleum
($19.1B), Refined Petroleum ($18.3B) and Packaged Medicaments ($17.6B).
The top export destinations of the United Kingdom are the United States ($45.2B), Germany ($38.6B),
the Netherlands ($24.9B), France ($24.8B) and China ($21.9B). The top import origins are Germany
($90.3B), China ($58.9B), the Netherlands ($47B), the United States ($46.6B) and France ($36B).
The United Kingdom borders Ireland by land and Belgium, Germany, Denmark, France, the Netherlands
and Norway by sea.
In 2017 the United Kingdom imported $617B, making it the 5th largest importer in the world. During the
last five years the imports of the United Kingdom have decreased at an annualized rate of -0.2%, from
$615B in 2012 to $617B in 2017. The most recent imports are led by Cars which represent 7.37% of the
total imports of the United Kingdom, followed by Gold, which account for 5.54%.
In 2017 the United Kingdom exported $395B, making it the 10th largest exporter in the world. During the
last five years the exports of the United Kingdom have decreased at an annualized rate of -2.3%, from
$436B in 2012 to $395B in 2017. The most recent exports are led by Cars which represent 11.4% of the
total exports of the United Kingdom, followed by Packaged Medicaments, which account for 4.66%.

7. Overview OF Bangladesh
(BD)
The market-based economy of Bangladesh is one of the fastest growing economies in the world.
It's the 39th largest in the world in nominal terms, and 29th largest by purchasing power parity;
it is classified among the Next Eleven emerging market middle income economies and a Frontier
market. According to the IMF, Bangladesh's economy is the second fastest growing major
economy of 2016, with a rate of 7.1%. Dhaka and Chittagong are the principal financial centers
of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange.
The financial sector of Bangladesh is the second largest in the subcontinent.
In the decade since 2004, Bangladesh averaged a GDP growth of 6.5%, that has been largely
driven by its exports of ready-made garments, remittances and the domestic agricultural sector.
The country has pursued export-oriented industrialization, with its key export sectors include
textiles, shipbuilding, fish and seafood, jute and leather goods. It has also developed self-
sufficient industries in pharmaceuticals, steel and food processing. Bangladesh's
telecommunication industry has witnessed rapid growth over the years, receiving high
investment from foreign companies. Bangladesh also has substantial reserves of natural gas and
is Asia's seventh largest gas producer. Offshore exploration activities are increasing in its
maritime territory in the Bay of Bengal. It also has large deposits of limestone. The government
promotes the Digital Bangladesh scheme as part of its efforts to develop the country's growing
information technology sector.
Bangladesh is strategically important for the economies of Northeast India, Nepal and Bhutan,
as Bangladeshi seaports provide maritime access for these landlocked regions and countries.
China also views Bangladesh as a potential gateway for its landlocked southwest, including
Tibet, Sichuan and Yunnan.
In 2018, Bangladesh's per-capita income was estimated as per IMF data at US$4,561 (PPP) and
US$1,754 (nominal). Bangladesh is a member of the D-8 Organization for Economic
Cooperation, the South Asian Association for Regional Cooperation, the International Monetary
Fund, the World Bank, the World Trade Organization and the Asian Infrastructure Investment
Bank. The economy faces challenges of infrastructure bottlenecks, insufficient power and gas
supplies, bureaucratic corruption, political instability, natural calamities and a lack of skilled
workers.

8. Exports
 $41 billion (FY18)
Export goods
 Textiles, Garments (2nd largest exporter in the world), Leather & Leather Goods,
Pharmaceuticals and other Chemical products, Ceramic Products, Bicycles, Jute and Jute
Goods, IT, Agricultural Products, Frozen Food (Fish and Seafood)
Main export partners
 European Union 58.2%
 United States 16.3%
 Japan 3.1%
 Canada 3.0%
 India 2.4%
 Australia 1.9%
 China 1.9%
 Southeast Asia 1.6%
 Others 11.6%
 $46.02 billion

9. Macro-economic trend:
Year Gross Domestic Product (Million Taka)
US Dollar
Exchange
Inflation
Index
(2000=100)
Per Capita
Income
(as % of USA)
198
0
250,300 16.10 Taka 20 1.79
198
5
597,318 31.00 Taka 36 1.19
199
0
1,054,234 35.79 Taka 58 1.16
199
5
1,594,210 40.27 Taka 78 1.12
200
0
2,453,160 52.14 Taka 100 0.97
200
5
3,913,334 63.92 Taka 126 0.95
200
8
5,003,438 68.65 Taka 147
201
5
17,295,665 78.15 Taka. 196 2.48
This is a chart of trend of gross domestic product of Bangladesh at market prices estimated by
the International Monetary Fund with figures in millions of Bangladeshi Taka. However, this
reflects only the formal sector of the economy.
Bangladesh in International trade
In 2015, the top exports of Bangladesh are Non-Knit Men's Suits ($5.6B), Knit T-shirts ($5.28B), Knit
Sweaters ($4.12B), Non-Knit Women's Suits ($3.66B) and Non-Knit Men's Shirts ($2.52B).
In 2015, the top imports of Bangladesh are Heavy Pure Woven Cotton ($1.33B), Refined Petroleum
($1.25B), Light Pure Woven Cotton ($1.12B), Raw Cotton ($1.01B) and Wheat ($900M).
In 2015, the top export destinations of Bangladesh are the United States ($6.19B), Germany
($5.17B), the United Kingdom ($3.53B), France ($2.37B) and Spain ($2.29B). In 2015, the top import
origins are China ($13.9B), India ($5.51B), Singapore ($2.22B), Hong Kong ($1.47B) and Japan
($1.36B).
Exports in Bangladesh increased to 271.64 BDT Billion in March from 232.41 BDT Billion in February
of 2019. Exports in Bangladesh averaged 47.19 BDT Billion from 1972 until 2019, reaching an all-

10. time high of 271.93 BDT Billion in January of 2019 and a record low of 0.05 BDT Billion in February
of 1972.
Exports in Bangladesh is expected to be 227.00 BDT Billion by the end of this quarter, according to
Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate
Exports in Bangladesh to stand at 235.00 in 12 months’ time. In the long-term, the Bangladesh
Exports is projected to trend around 240.00 BDT Billion in 2020, according to our econometric
models.
Bangladesh Trade Last Previous Highest Lowest Unit
Balance of Trade -145.30 -113.70 0.00 -209.80 BDT Billion [+]
Current Account -1728.00 -1354.00 1852.00 -3247.00 USD Million [+]
Current Account to GDP -3.60 -0.60 3.70 -4.40 percent [+]
Exports 271.64 232.41 271.93 0.05 BDT Billion [+]
Imports 416.96 346.07 465.30 0.57 BDT Billion [+]
Terms of Trade 87.10 87.10 104.70 80.01 Index Points [+]
Capital Flows 0.02 1.81 679.50 -12.72 BDT Billion [+]
Remittances 1434.05 1458.68 1597.21 856.87 USD Million [+]
Gold Reserves 14.00 14.00 14.00 3.29 Tonnes [+]
Foreign Direct Investment 1583.00 1706.00 1726.00 276.00 USD Million [+]
External Debt 33.11 28.34 33.11 16.17 USD Billion [+]
Crude Oil Production 3.00 3.00 6.00 1.10 BBL/D/1K [+]

11. Actual Previous Highest Lowest Dates Unit Frequency
271.64 232.41 271.93 0.05 1972 - 2019 BDT Billion Monthly
Bangladesh is world’s second-biggest apparel exporter after China. Garments including knit wear and
hosiery account for 80% of exports revenue; others include: jute goods, home textile, footwear and
frozen shrimps and fish. This page provides the latest reported value for - Bangladesh Exports - plus
previous releases, historical high and low, short-term forecast and long-term prediction, economic
calendar, survey consensus and news. Bangladesh Exports - actual data, historical chart and calendar of
releases - was last updated on June of 2019.
Bangladesh–United Kingdom
Trade Relations
The United Kingdom is the third largest export destination of Bangladesh and the country
historically maintains positive trade balance with the UK. During 2017-2018, a total of US$
3,989.12 million worth of goods were exported to the UK which is 9.74% of total export.The
major exportable items include ready-made garments, frozen food, IT engineering, leather and
jute goods, bicycle, etc. of which 80% constitutes knitwear and woven garments. The country
has initiated diversifying its export basket with high-end and high value-added products and
shown remarkable success in exporting pharmaceutical products, computer services, ship
building, electrical and electronic products across the world.
Factors contributing to the growth of export from Bangladesh.
 Competitiveness in terms of quality and price
 Duty free market access to EU countries under EBA (Everything but Arms) initiative
 Increasing cost of production in China and other advanced middle-income countries
 Increasing compliance (especially in the RMG and shrimp sectors)
 Strong backward linkages
 Strong public-private partnership
 High pool of young labor force with required skills
Trade:

12. Trade, investment and broader economic relations between the two countries have expanded in
depth and dimension over the years. The UK is the 3rd single largest destination for
Bangladesh’s exports, after the United States and Germany. Over the years Bangladesh’s exports
to the UK enjoys a steady annual growth. Total Bangladesh export to the UK in 2017-18 was US$
3,989.12 million, 10.53% higher than the previous year.
UK-Bangladesh trade statistics are encouraging in terms of volume and growth. This may be
attributed to, inter alia, competitive edge in quality and price; duty free access under EBA
(Everything But Arms) scheme; enhanced compliance (specially in the RMG sector) with
standards; strong backward linkage in knitwear and the High Commission’s regular initiatives.
Export items from Bangladesh to the UK also include knitwear, woven garments, shrimps, home
textile, bi-cycle, light engineering products, vegetables, frozen fish, ceramic tableware, and jute
yarn and jute goods. Import items from the UK include power-generating and industrial
machinery and equipment, professional and scientific equipment’s, textile fibers, home textiles,
ceramic, terry towel, jute and jute products, bicycle, medicinal and pharmaceutical products,
dyeing, tanning and coloring materials, electrical machinery and appliances and chemical
materials and products.
A focused, sustained effort is needed to project the fact that Bangladesh has many more
products to offer besides the traditional items that the UK presently imports from it. The UK
may add to its import basket from Bangladesh, for example, ceramics, pharmaceuticals and
computer software, as well as medium and small sized ships, an emerging manufacturing
product of Bangladesh. Some European countries including Denmark, Germany and the
Netherlands are currently procuring sea-worthy vessels from Bangladesh.

13. Conclusion
The work of research has been a unique as well as an amazing experience for me. The
Assignment and your guidelines have allowed me this opportunity. I have learned a lot from this
Assignment And taught me to dive deep. I hope this knowledge will help in the future.