International Business In Bangladesh Assignment

 

Course-19International Business Environment 2. Why why firms go international? Discuss the problems faced by MNCs inintroducing a new product.

 Introduction:

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Bus 510: International Business

Introduction

Bangladesh is one of the fastest growing economic countries among the LDC’s country.

According to theInternational Monetary Fund,Bangladesh ranked as the42rd largesteconomyin the world in 2011 in PPP terms and 57th largest in nominal terms, among theNext ElevenorN-11of Goldman SachsandD-8economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy hasgrown at the rate of 6-7% per annum over the past few years. More than half of the GDP isgenerated by the service sector; while nearly half of Bangladeshis are employed in theagriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather andleath. An easy way to understand any country's economic scenario is through its Balance of Trade (BOT) and Balance of Payment (BOP) figures. Balance of Trade shows the differencebetween the total amount of incoming and outgoing currencies through import and export.Balance of Payment (BOP) is a summary of economic activities between the residents of acountry and the rest of the world during a given period, usually one year. The main purposeof keeping these records is to inform government authorities about the overall internationaleconomic position of the country in order to assist them in arriving at decisions on monetaryand fiscal policy, on the one hand, and trade and payments policy on the other. Balance of payments statistics are therefore helpful to government authorities charged with maintainingmacroeconomic stability.BOT is a part of BOP, but it is significant for the economy because import and export is oneof the most important economic activities of a nation. Moreover the balance of trade showswhether the external sector of a particular country is doing well or not. Along with BOT,BOP depicts the overall economic balance of a nation and the health of foreign reserve of thatnation.

Objectives of the Assignment:

1.

To discuss the theoretical aspect of Balance of Payment2.

To discuss balance of trade(BOT) and balance of payments(BOP)

Theoretical aspect of BOP:

BOP is the summary statement of all economic transitions of a nation with the rest of world.These transactions include payments for the country's exports and imports of goods,services,financial capital,andfinancial transfers.The Bop accounts summarize internationaltransactions for a specific period, usually a year, and are prepared in a single currency,typically the domestic currency for the country concerned. Each transaction is recorded inaccordance with the principles of double-entry bookkeeping, meaning that the amountinvolved is entered on each of the two sides of the balance-of-payments accounts.Consequently, the sums of the two sides of the complete balance-of-paymentsaccounts should always be the same, and in this sense the balance of payments alwaysbalances. Conceptually all economic transactions are bilateral in nature and thus these

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