INTERNATIONAL TRADE OF

BANGLADESH &
CONTINENTAL PROFILE OF
MNCs
 PRESENTED BY
1. Mesbah Uddin Mahmud Ratul,
Roll : 3-19-41-030
2. Kamrul Hasan,
Roll : 3-19-41-019
3. Kushal Biswas,
Roll : 3-19-41-002

Department : Management
 1 TOPIC
st

INTERNATIONAL TRADE OF
BANGLADESH
 International trade of Bangladesh

 Bangladesh is open to international trade.

 Customs duties in Bangladesh are relatively high, however, the country is implementing a
series of measures including concessional tariffs, a customs duty recovery system and
export processing zones, in order to reduce these barriers.
 Besides high import duties, the other hindrances to the country's development are the low
quality of transport and communication infrastructures, an unreliable energy supply, and a
lack of skilled manpower. Corruption remains a serious obstacle to efficient business
operations.
 Financed by international aid and wire transfers from emigrants, traditionally, the country
has shown a significant trade deficit. This trend should continue in the coming years.
 International trade figures of Bangladesh

Trade represented 35.3% of Bangladeshi GDP in 2017 (World Bank). The main
export products are clothes, raw jute and its derived products, leather, fish and frozen
seafood. Bangladesh mainly imports machinery and equipment, chemical products,
steel & metals, cement, food and oil derived products (OEC). Exports from
Bangladesh hit record levels in 2017 (USD 35.91 billion) due to stronger garment
sales. Since becoming independent, Bangladesh has had a negative trade balance,
with its deficit being financed by international aid and expatriate transfers. The trade
deficit as of January 2018 amounted to approximately USD 2.1 billion (OEC).
 International trade figures of Bangladesh

Our country's main export partners are the European Union, the United States and
China. Bangladesh imports mainly from Thailand, India, China, Indonesia and
Singapore. The country acts as a passageway between the centre of India and its
Eastern provinces. Customs duties in Bangladesh are relatively high; however, the
country is implementing a series of measures to reduce its trade barriers, including
concessional tariffs, a customs duty recovery system and export processing zones as
well as high-level negotiation with key countries. Our country has benefited from
more simplified procedures and regulations to export its products to the European
Union as an LDC (least developed country).
 International trade figures of Bangladesh

However, the country risks losing this advantage unless it improves working
conditions in the textile industry. Bangladesh and Russia seek to remove trade
barriers and increase bilateral trade by allowing banking transactions between both
countries; current trade is done through Telegraphic Transfer (Dhaka Tribune). The
trade war between China and the U.S. are expected to increase Bangladesh
merchandise exports by USD 400 million, which would represent a 0.19% increase
in GDP (Dhaka Tribune). Indian authorities are also recommending an extension on
anti-dumping duties on Bangladeshi jute bags, a sanction imposed since January
2017 (The Hindu Business Line).
 International trade figures of Bangladesh

Foreign Trade Indicators 2013 2014 2015 2016 2017

Imports of Goods (million USD) 37,085 42,268 39,460 41,490 52,836
Exports of Goods (million USD) 29,114 30,405 32,379 34,956 35,965
Imports of Services (million USD) 6,194 7,195 8,745 8,519 9,011
Exports of Services (million USD) 1,526 1,627 1,684 3,585 2,262
Imports of Goods and Services (Annual % Change) 1.2 1.2 3.2 -7.1 2.9
Exports of Goods and Services (Annual % Change) 2.5 3.2 -2.8 2.2 -2.3
Imports of Goods and Services (in % of GDP) 26.8 25.5 24.7 21.3 20.3
Exports of Goods and Services (in % of GDP) 19.5 19.0 17.3 16.6 15.0
Trade Balance (million USD) -6,362 -7,482 -6,120 -6,231 -12,255
Trade Balance (Including Service) (million USD) -9,933 -12,119 -10,606 -10,483 -17,659
Foreign Trade (in % of GDP) 46.3 44.5 42.1 38.0 35.3
Main Partner Countries

Main Customers Main Suppliers

2011 2011
(% of Exports) (% of Imports)
Thailand 22.8%
United States 21.0%
India 11.2%
Germany 15.6%
China 8.8%
United Kingdom 9.5%
Indonesia 6.0%
France 6.4%
Singapore 5.2%
Spain 4.4%
Malaysia 4.5%
Canada 4.2%
Brazil 3.2%
Italy 4.1%
United States 3.0%
Netherlands 3.4%
Japan 2.4%
Belgium 3.3%
Pakistan 2.3%
Turkey 2.7%
 Main Products

24.3 BN USD of products exported in 2011 41.2 BN USD of products imported in 2011
T-shirts, singlets and other vests, knitted 19.9% Petroleum oils and oils obtained from bituminous 6.6%
Men's or boys' suits, ensembles, jackets, blazers 18.7% Cotton, neither carded nor combed 5.8%
Jerseys, pullovers, cardigans, waistcoats 10.9% Palm oil and its fractions, whether or not refined 5.8%
Women's or girls' suits, ensembles, jackets 8.5% Woven fabrics of cotton, containing >= 85% cotton 3.6%
Men's or boys' shirts 7.0% Cane or beet sugar and chemically pure sucrose 2.8%
Men's or boys' shirts, knitted or crocheted 3.0% Woven fabrics of cotton, containing >= 85% cotton 2.7%
Bed-linen, table linen, toilet linen and kitchen 2.7% Cotton yarn other than sewing thread 2.7%
Crustaceans, fit for human consumption 2.0%
Soya-bean oil and its fractions 2.7%
Yarn of jute or of other textile bast fibres 2.0%
Vessels and other floating structures for breaking 2.6%
Women's or girls' suits, ensembles, jackets 1.8%
Wheat and meslin 2.4%
Main Services

3.2 BN USD of services exported in 2016 7.5 BN USD of services imported in 2016
Government services 39.01% Transportation 79.69%
Other business services 15.22% Travel 6.42%

Communications services 14.17% Other business services 6.13%

Construction services 2.97%
Transportation 13.05%
Financial services 1.44%
Travel 6.74%
Government services 1.36%
Computer and information services 5.68%
Communications services 0.84%
Construction services 3.26%
Royalties and license fees 0.62%
Financial services 2.82% Computer and information services 0.37%
Insurance services 0.03% Cultural and recreational services 0.14%
Cultural and recreational services 0.02% Insurance services 0.02%
 Prospects of International trade of
Bangladesh

 Bangladesh will be the third fastest growing economy in the world

in terms of achieving high Gross Domestic Product (GDP) in 2019,
according to a United Nations report.
 The report titled World Economic Situation and Prospects put
Bangladesh only behind South Sudan and India. Bangladesh will
expand at 7.4% this year, while India at 7.6%, and South Sudan to
grow at a staggering rate of 8%, it said.
 2 ND
TOPIC
CONTENENTAL PROFILE OF
MNCs
What is MNC?

Multinational Corporation or MNC’s are those firms that engages in

FDI and owns or controls value adding activates in more than one
country
 Largest MNC’s

According to the Fortune Global 500 List, the 10 largest multinational corporations in the world as of mid-2018
consolidated revenue are
 Walmart ($500.34 billion),
 State Grid ($348.90 billion),
 Sinopec Group ($326.95 billion),
 China National Petroleum ($326.01 billion),
 Royal Dutch Shell ($311.87 billion),
 Toyota Motor ($265.17 billion),
 Volkswagen ($260.03 billion),
 BP ($244.58 billion),
 ExxonMobil ($244.36 billion) and
 Berkshire Hathaway ($242.14 billion)
 Number of MNC In Different Continent

From the top 10 list we can see that four companies are from Asian continent(State Grid, Sinopec
Group, China National Petroleum, Toyota Motor) three from European continent(Royal Dutch
Shell, Volkswagen, BP) and three from north American continent(Walmart, ExxonMobil, Berkshire
Hathaway).
By analyzing Fortune Global 500 List we can show that
 212 are from Asia
 142 are from North America
 132 are from Europe
 7 are from South America
 7 are from Oceania
 ASIA

In the Asian region there are total 212 multinational companies in Fortune Global 500 list. By
breaking down it to country wise -
Country Number of MNC Country Number of MNC
China 120 Indonesia 1
Japan 52 Malaysia 1
South Korea 16 Thailand 1
Taiwan 9 Saudi Arabia 1
India 7 UAE 1
Singapore 3
 ASIA

 Nearly 40% of the Fortune Global 500 list are Asia based.
 Asian multinational companies are lading in some industry such as
 Banks: Commercial & Savings (Industrial & Commercial Bank)
 Electronics, Electrical Equipment (Samsung Electronics)
 Engineering & Construction (China Construction Engineering)
 Insurance: Life, Health (Mutual) (Nippon Life Insurance )
 Mail, Package, & Freight Delivery (China Post Group)
 Metals (China Minmetals)
 Network & Other Communications Equipment (Huawei Investment & Holding)
 Textiles (Shandong Weiqiao Pioneering)
 ASIA

 As Asia’s economy has grown rapidly in last two decades contributing nearly 37% of world
GDP the number of MNC’s based on Asia has been increased exponentially.
 Asian-based companies increased rapidly from 116 in 2001 to 212 in 2018 in Fortune Global
500 list
 Most of this growth is accounted for by the rapid increase in the number of Chinese Global
500 companies, of which there were 120 by 2018, increasing from only 10 in 2001
 Chinese MNC’s face challenges in foreign market due to national crisis
 NORTH AMERICA

In the North America region there are total 142 multinational companies in Fortune Global 500
list. By breaking down it to country wise -

Country Number of MNC

USA 126

CANADA 12

MEXICO 4
 NORTH AMERICA

 North American multinational companies are lading in many industry such as

 Aerospace & Defense (Boeing)
 Airlines (American Airlines)
 Computer Software (Microsoft)
 Computers, Office Equipment (Apple)
 Entertainment (Disney)
 Food Production (Archer Daniels Midland)
 Health Care: Pharmacy & Other Services (CVS Health)
 Industrial Machinery (General Electric)
 Information Technology Services (IBM)
 NORTH AMERICA

 The number of North American-based companies decreased from 215 in 2001 to 142 in 2018
in Fortune Global 500 list
 USA has the highest number of multinational companies in Fortune Global 500 list around 126
companies.
 US company Walmart is the largest company in the world according to Fortune Global 500 list
 EUROPE

In the Europe region there are total 132 multinational companies in Fortune Global 500 list. By
breaking down it to country wise -

Country Number of MNC Country Number of MNC Country Number of MNC

Germany 32 Switzerland 5 Finland 1

France 28 Ireland 4 Luxemburg 1
Britain 20 Russia 4 Norway 1
Nederland 14 Sweden 2 Poland 1
Spain 9 Belgium 1 Turkey 1
Italy 6 Denmark 1 Dutch Britain 1
 EUROPE

 Europe is the birth place of MNC. Many of the first multinationals were commissioned at the
behest of European monarchs in order to conduct expeditions. Many of the colonies not held by
Spain or Portugal were under the administration of some of the world's earliest multinationals.
One of the first arose in 1600: The East India Company, founded by the British. It was
headquartered in London, and took part in international trade and exploration, with trading posts
in India.
 European MNC’s are playing an important role in the economical and political integration of
Europe
 The share of European-based companies declined, from 158 to 132 from 2001 to 2018 in Fortune
Global 500 list
 EUROPE

 European multinational companies are lading in many industry such as

 Apparel (Christian Dior )
 Beverages (Anheuser-Busch InBev)
 Chemicals (BASF)
 Energy (Gazprom)
 Food Consumer Products (Nestle)
 Human Resources & Employment Services (Adecco Group)
 Medical Products & Equipment (Medtronic)
SOUTH AMERICA & OCEANIA
&AFRICA

CONTINENT COUNTRY Number of MNC

SOUTH AMERICA BRASIL 7

OCEANIA AUSTRALIA 7

AFRICA - -
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