DEPARTMENT OF MANAGEMENT STUDIES UNIVERSITY OF DHAKA

COURSE TITLE: Management of Mu t!nat!ona Co"#o"at!on

Re#o"t
On

Course no. EM - 555

Submitted to
D"$ S%e& Go am Mao a Professor, Department of Management Studies University of D a!a

Submitted by
"afi Ma mood #a in Student $D % &'-()-))-&*) EM+, ))nd +at-

Pa"t A: G o'a T"en&( of FDI

FOREIGN DIRECT INVESTMENT )FDI*+ GLO,AL SOURCING AND INDUSTRIAL LINKAGES . e g/oba/i0ation of produ-tion is -reating potentia//y important -ompetitive opportunities and - a//enges for ,sia-Pa-ifi- SMEs as supp/iers and -ompetitors 1it in t e frame1or! of g/oba/ va/ue - ains. $t is usefu/ to -onsider t is issue 1it in t e more genera/ -onte2t of trends in 3D$ and g/oba/ sour-ing, and t eir imp/i-ations for industria/ /in!ages invo/ving SMEs. Over t e /ast t1o de-ades, t e use of e2terna/ outsour-ing as be-ome an important strategi- issue, 1it in-reasing re-ognition of t e benefits t at effe-tive outsour-ing and internationa/ produ-tion strategies -an provide. $n t e neverending 4uest for greater effi-ien-y and -ost savings, many -ompanies ave de-ided to sour-e parts and -omponents from /o1--ost supp/iers g/oba//y, and in many instan-es ave transferred -ertain segments of or t e entire produ-tion pro-ess to ne1 /o-ations overseas. $ndeed, internationa/ pro-urement and nove/ offs ore integrated produ-tion arrangements ave be-ome -riti-a/ to t e -ompetitiveness and su--ess of g/oba/ firms. Many -orporations no1 ave estab/is ed presen-es a-ross #ort ,meri-a, Europe and t e ,sia-Pa-ifi- region, often a1ay from t eir o1n -orporate ead4uarters and traditiona/ mar!ets. ,s a resu/t, 3D$ and trade ave gro1n in an unpre-edented fas ion 5U#C.,D )&&*6. T"en&( !n fo"e!gn &!"e-t !n.e(tment 7/oba/ 3D$ f/o1s rose by ((8 in )&(' to an estimated US9(.:; tri//ion, up from a revised US9(.') tri//ion in )&(). 3D$ inf/o1s in-reased in a// ma<or e-onomi- groupings = deve/oped, deve/oping and transition e-onomies. $n )&(', t e s ift in mar!et e2pe-tations to1ards an ear/ier tapering of 4uantitative easing in t e United States -aused some vo/ati/ity for internationa/ investments. . e impa-t 1as /arge in some emerging mar!ets, 1 i- suffered rea/ e2- ange rate depre-iation, sto-! mar!et de-/ines and a 1it dra1a/ of -apita/. >o1ever, in -ontrast to foreign portfo/io f/o1s t at de-/ined dramati-a//y in t e se-ond and t ird 4uarter of )&(', 3D$ f/o1s 1ere re/ative/y /ess vo/ati/e 5figure )6.

De.e o#e& -ount"!e( a--ount fo" on % t/o0f!ft1( of g o'a FDI &e(#!te a 234 "!(e $nf/o1s to deve/oped -ountries appear to be re-overing, 1it pre/iminary estimates s o1ing a ()8 rise in )&(', over )&(), to US95?; bi//ion, for t e group of '* e-onomies as a 1 o/e 5tab/e (6. >o1ever, t e pi-ture is mi2ed@ despite positive signs of re-overy in some deve/oped -ountry regions, su- as parts of t e EU, 3D$ f/o1s to t e United States fai/ed to reverse t eir de-/ine, -ontrary to ot er signs of e-onomi- re-overy over t e past year. $nf/o1s to Aapan rose by ;(8 to US9).* bi//ion, but ,ustra/ia and #e1 Bea/and sa1 s arp de-/ines of )*8 to US9:& bi//ion and ?58 to US9&.5 bi//ion, respe-tive/y. 3/o1s to deve/oped e-onomies 1ere t erefore sti// at on/y ::8 of t eir pea! /eve/ of

)&&?. Even t oug t e gro1t rate in 3D$ f/o1s to deve/oped -ountries 1as t1i-e t at -ompared to deve/oping -ountries in )&(', it 1as not enoug to restore t eir position as primary re-ipients of 3D$ inf/o1s. . e deve/oped -ountry s are remained 1e// be/o1 a/f of g/oba/ inf/o1s at 'C8 5figure '6. . e aggregate inf/o1s to t e EU in re-ent years 1ere /arge/y a--ounted for by f/o1s to four re/ative/y sma// e-onomies +e/gium, $re/and, t e #et er/ands and Du2embourg t at offer a ta2-friend/y environment for investment, parti-u/ar/y for spe-ia/ purpose entities. ,s a resu/t, t ese e-onomies are osts to a /arge number of .#CsE finan-ia/ or treasury fun-tions. >aving fa//en by over US9(;C bi//ion in )&(), inf/o1s to t ese four e-onomies gre1 by over US9(&& bi//ion in )&('. E/se1 ere in t e EU, 7ermany 5F'C)8 to US9').' bi//ion6, Spain 5F'?8 to US9'?.( bi//ion6 and $ta/y 5from US9&.( bi//ion to US9C.C bi//ion6 sa1 a substantia/ re-overy in t eir 3D$ inf/o1s. Converse/y, f/o1s de-/ined in (5 out of )? EU e-onomies, 1it t e /argest de-/ines observed in 3ran-e 5-??8 to US95.? bi//ion6 and >ungary 5from US9('.* bi//ion to -US9' bi//ion6. Outside t e EU, inf/o1s to #or1ay and S1it0er/and a/so fe// s arp/y by :;8 to US9C.: bi//ion and by C*8 US9&.) bi//ion, respe-tive/y. Estimates for #ort ,meri-a s o1 t at inf/o1s gre1 by ;8 due to a turnaround in Canada 5F:C8 to US9;:.( bi//ion6 1 ere inf/o1s rose a-ross a broad range of industries. . e re-overy 1as /arge/y as-ribed to a s arp in-rease in intra--ompany /oans to foreign affi/iates in Canada. Cross-border MG, sa/es in bot Canada and t e United States de-/ined, 1 i- is part/y e2p/ained by /arge divestments. $nf/o1s to $srae/ 5F :*8 to US9(: bi//ion6, primari/y attra-ted by t e -ountryEs ig -te- industry, are estimated to ave rea- ed a /eve/ -omparab/e to t e previous ig in )&&;. $n ,ustra/ia, 1 iinf/o1s de-/ined by more t an a 4uarter in )&('. ,n upturn in MG, sa/es in-rease 3D$ inf/o1s to Aapan, but t e va/ue of inf/o1s 1as sti// margina/. as e/ped benefited from t e -ommodity boom in t e re-ent past, MG, sa/es a/ved and 3D$

De.e o#!ng A(!a "ema!n( t1e /o" &5( to# FDI (#ot6 Lat!n Ame"!-a at (!m! a" e.e ( to Eu"o#e Continuing their 2012 performance, developing economies a--ounted for more t an a/f of g/oba/ 3D$ again in )&(', as t eir inf/o1s rea- ed a ne1 ig , at an estimated US9?5C bi//ion. . e in-rease 1as main/y driven by Datin ,meri-an and t e Caribbean, and ,fri-a 1 i/e deve/oping ,sia = t e 1or/dEs /argest re-ipient region for 3D$ = sa1 its f/o1s at a /eve/ simi/ar to )&() 5figure :6.

.ota/ inf/o1s to developing Asia = -omprising East ,sia, Sout ,sia, Sout -East ,sia and Hest ,sia = as a 1 o/e amounted to an estimated US9:&; bi//ion in )&(', at a /eve/ simi/ar to )&(). . e performan-e of sub-regions -ontinues to diverge, 1it 3D$ gro1t rates ranging bet1een '8 in Sout ,sia 5to US9'' bi//ion6, )8 in Sout -East ,sia 5to US9((; bi//ion6, (8 in East ,sia 5to US9)(C bi//ion6 and -)&8 in Hest ,sia 5do1n to US9'* bi//ion6. Hit inf/o1s to C ina at an estimated US9()? bi//ion in-/uding bot finan-ia/ and non-finan-ia/ se-tors t e -ountry again ran!ed se-ond in t e 1or/d, -/osing t e gap 1it t e United States to some US9') bi//ion 5figure 56. $ndia e2perien-ed a (?8 gro1t in 3D$ f/o1s, to US9)* bi//ion, despite une2pe-ted -apita/ outf/o1s in t e midd/e of t e year. 3D$ gro1t s/o1ed in t e ,sso-iation of Sout east ,sian #ations 5,SE,#6, as inf/o1s to Singapore t e /argest re-ipient in Sout -East ,sia stagnated at US95; bi//ion. >o1ever, prospe-ts for t is regiona/ grouping -ontinue to be promising, as more 3D$ arrives from C ina and Aapan in a 1ide range of se-tors, in-/uding infrastru-ture, finan-e and manufa-turing. Hest ,sia is t e on/y region to see a fift -onse-utive de-/ine in 3D$ in )&(', dropping by anot er )&8 to US9'* bi//ion. . e regionEs t1o main re-ipients Saudi ,rabia and .ur!ey bot registered signifi-ant 3D$ de-/ines of (C8 to US9C.C bi//ion and (58 to US9(( bi//ion, respe-tive/y. .ur!ey 1itnessed virtua//y a tota/ absen-e of /arge 3D$ dea/s. $n addition, t e 1orsening po/iti-a/ instabi/ity in many parts of t e region ave -aused un-ertainty and negative/y affe-ted investment. 3D$ f/o1s to Latin America and

the Caribbean in-reased by (*8 in )&(' t e fourt -onse-utive year of gro1t rea- ing an estimated US9)C: bi//ion. H i/e in previous years 3D$ gro1t to t e region 1as /arge/y driven by Sout ,meri-a, in )&(' Centra/ ,meri-a and t e Caribbean 1ere t e main re-ipient of 3D$ gro1t 53D$ inf/o1s in-reasing by C'8 and '*8 respe-tive/y6. 3/o1s to Sout ,meri-a de-/ined by ?8. . e US9(* bi//ion a-4uisition of 7rupo Mode/o in Me2i-o e2p/ains most of Centra/ ,meri-aIs in-rease in 3D$, 1 i/e t e strong rise in t e Caribbean 1as main/y driven by t e +ritis Jirgin $s/ands 5see be/o16. . e de-/ine of 3D$ f/o1s to Sout ,meri-a -ame after t ree years of strong gro1t bo/stered by t e strengt of -ommodity pri-es t at fue//ed rising profits on investment as 1e// as reinvested earnings in t e mining industry. De-reasing -ommodity pri-es seem to ave broug t a stop to t e boom in 3D$ in t is industry, espe-ia//y in -ountries su- as C i/e 5''8 to US9)&.: bi//ion6 and Peru 5-)8 to US9() bi//ion6. $n addition, 3D$ to +ra0i/ t e /argest re-ipient of 3D$ in t e sub-region, 1it :?8 of Sout ,meri-an tota/ 3D$ f/o1s in )&(' de-/ined by a s/ig t '.C8 in )&(', but remained signifi-ant 5US9;' bi//ion6. #evert e/ess, t is de-/ine s ou/d be seen in t e -onte2t of strong gro1t in previous years t at boosted 3D$ in +ra0i/ to istori-a/ ig 3D$ inf/o1s to ,fri-a rose by ;.*8 to an estimated US95;.' bi//ion. . is 1as due to t e strong performan-e of Sout ern ,fri-an -ountries, in-/uding Sout ,fri-a and Mo0ambi4ue t at e2perien-ed re-ord inf/o1s of more t an US9(& bi//ion and US9? bi//ion, respe-tive/y, as 1e// as /o1er /eve/s of divestment in ,ngo/a -ompared to previous years. . e ot er sub-regions sa1 t eir inf/o1s de-rease. Persistent po/iti-a/ and so-ia/ tensions -ontinued to subdue f/o1s to #ort ,fri-a, 1 ere on/y Moro--o registered so/id gro1t of ):8, to US9'.5 bi//ion. #onet e/ess, t ere are signs t at investors are ready to return to t e region, 1it many big -ross-border dea/s targeting Egypt. $n Sub-Sa aran ,fri-a, #igeriaEs /a-!/ustre performan-e 5US95.5 bi//ion6 is t e resu/t of foreign .#CsE retreat from t e oi/ industry. T1e Ru((!an Fe&e"at!on 7um#( to t1!"& !n g o'a "an8!ng 9 fo" t1e f!"(t t!me e.e" .ransition e-onomies e2perien-ed a signifi-ant :58 rise in 3D$ inf/o1s, rea- ing a re-ord /eve/ an estimated US9(); bi//ion. 3D$ inf/o1s to t e Kussian 3ederation <umped by *'8 to US9C: bi//ion ma!ing it t e 1or/dEs t ird /argest re-ipient of 3D$ for t e first time ever 5figure 56. . e rise 1as predominant/y as-ribed to t e /arge a-4uisition

by +P 5United "ingdom6 of (*.58 of Kosneft 5Kussia 3ederation6 as part of KosneftEs US95? bi//ion a-4uisition of .#"-+P, 1 i- is o1ned by a -ompany registered in t e +ritis Jirgin $s/ands. 3D$ in t e Kussian 3ederation is e2pe-ted to !eep pa-e 1it its )&(' performan-e as t e Kussian 7overnmentEs Dire-t $nvestment 3und a US9(& bi//ion fund to promote 3D$ in t e -ountry -o//aboration 1it as been very a-tive/y dep/oyed in ,bu D abiIs foreign partners, for e2amp/e funding a dea/ 1it

3inan-e Department to invest up to US95 bi//ion in Kussian infrastru-ture.

Con- u(!on :
3D$ f/o1s -ou/d rise furt er in )&(: and )&(5, to US9(.; tri//ion and US9(.* tri//ion, respe-tive/y, as g/oba/ e-onomi- gro1t gains momentum. ,-tivity is e2pe-ted to improve furt er in )&(: and )&(5, /arge/y on a--ount of re-overy in deve/oped e-onomies. 7DP gro1t , gross fi2ed -apita/ formation and trade are pro<e-ted to rise g/oba//y over t e ne2t years. . ose improvements -ou/d prompt .#Cs to gradua//y transform t eir re-ord /eve/s of -as o/dings into ne1 investments. >o1ever, uneven /eve/s of gro1t , fragi/ity and unpredi-tabi/ity in a number of e-onomies, and t e ris!s asso-iated 1it a gradua/ e2it from t e 4uantitative easing program by t e United States and ot er ma<or -ountries may dampen t e re-overy. . e announ-ed dea/s for 3D$ pro<e-ts in /ate )&(', be t ey MG,s or greenfie/d, suggest t at t e /ift off in 3D$ may not be strong in t e s ort term.

Pa"t , :In&u(t"% an& -ount"% /!(e D!(t"!'ut!on of ,ang a&e(1! Com#an% )In- u&!ng !n.e(tment !n ,ang a&e(1*
Int"o&u-t!on 3or a resour-e poor -ountry /i!e +ang/ades 3oreign Dire-t $nvestment 53D$6 -an p/ay a -ru-ia/ ro/e in industria/ finan-ing t roug gat ering s-attered funds from various g/oba/ investors in t is -onne-tion 3oreign Dire-t $nvestment 53D$6 as p/ayed a !ey ro/e in t e moderni0ation of t e +ang/ades e-onomy for t e /ast (5 years. . e tota/ trend in t e 3D$ f/o1s of t e deve/oping -ountries s o1s an en-ouraging pi-ture in genera/ terms. More investment is -oming from private se-tors in t e deve/oping -ountries from t e deve/op one t roug /i-ensing, fran- ising, merging, <oint venture, -ontra-t manufa-turing and so fort . Most of t e time deve/oping -ountries be-ome investors among t emse/ves. . e situation for DDCIs 5Deast Deve/oped Countries6 do not /oo! t at brig t. Jie1ed in t is -onte2t +ang/ades is one of t e most popu/ous DDCIs needs to ma!e o1n sto-! ta!ing of t e -ontemporary g/oba/ e-onomi- situation as far as t e 3D$ f/o1s are -on-erned. 7overnment of +ang/ades revised its industria/ po/i-y of (CC( and offers a number of good fa-i/ities and in-entives by (CCC to attra-t 3D$. . oug t e po/i-y as - anged, 3D$ f/o1s to +ang/ades are so far been neg/igib/e. $ts reform program for out1ards /oo!ing e-onomi-s a-tivities ave fai/ed to attra-t 3D$ a si0eab/e in -omparison 1it ot er ,sian Countries. ,-tua//y su--ess of any po/i-y or organi0ation a- ievement depends on its abi/ity to estab/is and maintain a good fit bet1een itse/f and environment 1 ere it 1i// appropriate and on identifying t e -ompetitive advantages and e2p/oiting t e opportunities in t e more effi-ient manner t an t at of t e -ompetitors. . e 1or/d e-onomy is in stream of - ange in order to integrate itse/f to a- ieve desire ob<e-tives of t e e-onomi- g/oba/i0ation for t e gro1t and prosperity for t e irrespe-tive of region in a// parts of t e 1or/d. .rends in e-onomi- po/i-ies in bot deve/oped and deve/oping -ountries ave been great/y inf/uen-ed by t e g/oba/i0ation t at is free mar!et e-onomy and as a matter of fa-t foreign investment and trade /abia/i0ation ave be-ome its prime impu/ses. . e e2isten-es of mar!et opportunities, deve/opment of -ommuni-ation, information te- no/ogy and -omparative advantages in internationa/

/eve/ motivate foreign investor in t e internationa/ business operation. Kesear- ers ave mar!ed 3D$ as an important fa-tor in a--e/erating e-onomi- su--ess and 1ea/t of a -ountry as 1e// as a door in -reating <obs, fa-i/itating e-onomy, and -reating more -ompetitive environment and -ontributing produ-tivity to t e ost -ountry. $n +ang/ades , 3D$ p/ays a signifi-ant ro/e in 7DP a--e/eration and e-onomi- gro1t 5Motta/eb )&&?6. 3D$ as a mentionab/e ro/e in t e moderni0ation of t e +ang/ades e-onomy for /ast t1o de-ades. $t e/ps t e -ountry in bui/ding up infrastru-ture, -reating more emp/oyment, deve/oping -apa-ity, en an-ing s!i//s of t e /abor for-e of t e ost -ountry t roug transferring te- no/ogi-a/ !no1/edge and manageria/ -apabi/ity, and e/ping in integrating domesti- e-onomy and t e g/oba/ e-onomy. Jarious positive attributes of +ang/ades is no1 dra1ing t e attention of t e investors from bot deve/oped and deve/oping -ountries. $n +ang/ades , it is avai/ab/e to get s!i//ed /abor at re/ative/y /o1 1ages. Moreover, t ere is reasonab/y stab/e ma-ro e-onomi- environment. . ese t1o important fa-tors -an ma!e +ang/ades an a//uring destination for foreign investors. Do1est 1age rates among t e ,sian -ountries, to/erab/e inf/ation rate, reasonab/y stab/e 5e2-ept previous year6 e2- ange rate, investment friend/y -ustom regu/ations and attra-tive in-entive pa-!ages ma!e +ang/ades a favorab/e investment destination. +ang/ades be-ame more open to1ard 3D$ po/i-ies over t e /ast de-ades. . ese above features 1i// -ertain/y maintain t e re-ent advan-ement in 3D$ investment in +ang/ades by t e foreign investors

FDI T"en&( !n ,ang a&e(1

3o//o1ing t e in-entives offered by t e 7overnment of +ang/ades , t e foreign investors ave started -oming to +ang/ades for investment. 3D$ inf/o1s into +ang/ades may -onsist of (&&8 foreign o1ned investment and <oint venture bet1een +ang/ades i investor and foreign investor. 3oreign investments registered 1it +oard of $nvestment during (CC& to )&(& are presented in .ab/e (@

.ab/e ( -/arifies t at registered foreign investment -onsists of ?*8 of <oint venture investment -ompared to tota/ investment units 1 i/e ))8 of so/e foreign investment. $n -ase of re4uired investment -ent per-ent foreign investment needs :(8 of tota/ investment re4uired and 5C8 of tota/ investment is re4uired for <oint venture investment. +ut emp/oyment opportunity as not been appened a--ording to investment opportunity and no. of registered units. . ese mig t ave been appened be-ause of /abor intensive and -apita/ intensive pro<e-ts. . e .ab/e ( as not s o1n year-1ise registered units, re4uired investment and emp/oyment opportunities. . e .ab/e ) s o1s t e year-1ise brea! up of (&&8 registered 3D$ proposa/s

.ab/e ) s o1s t e year/y brea! up of (&&8 proposed registered 3D$ into +ang/ades and

emp/oyment opportunity for t e period of (CC&-)&(&. . e .ab/e -/arifies t e f/u-tuations in t e proposed registered 3D$ inf/o1s into +ang/ades . . e f/u-tuations in -ase of emp/oyment opportunities are a/so seen in t e .ab/e. $t is seen in t e .ab/e t at t e ig est investment 3D$ inf/o1s in )&&5 and /o1est in (CC:. Emp/oyment opportunities are seen ig est in (CCC and /o1est in (CC&. . ere may be many reasons attributed for t ese f/u-tuations. . e reasons may be inade4uate in-entives to investors, po/iti-a/ vo/ati/ity, red tapism, -apita/ intensive and /abor intensive pro<e-ts. ,mong t e reasons may be t e dominant fa-tors for /o1 3D$ inf/o1s into +ang/ades . . e 3D$ inf/o1s into +ang/ades ave been -on-entrated in different sub- se-tors.

. e figure s o1s in-onsistent pro-eedings of (&&8 foreign investment in +ang/ades sin-e (CC&. $n spite of aving in-entives, friend/y investment po/i-ies, /o1 /abor -ost, -omparative advantages, estab/is ment of EPBs +ang/ades not attain desirab/e investment. . e above figure s o1s an in-reasing trend from year (CC5 to (CCC. +ut after t at t ere is a de-reasing up to )&&( and again up1ard trend to year )&&5 and again a do1n 1ard trend up to )&(& . e se-tor-1ise 3D$ inf/o1s into +ang/ades are presented in .ab/e '.

.ab/e ' presents t e se-tor-1ise 3D$ inf/o1s into +ang/ades in t e .ab/e. $t is

and emp/oyment

opportunities. . ere are f/u-tuations in investment inf/o1s and emp/oyment opportunities

seen in t e tab/e t at Servi-es Se-tor attra-t ig est investment inf/o1s, fo//o1ed by - emi-a/ sub-se-tor. . e /o1est investment inf/o1s are seen in Printing, Pub/is ing and Pa-!aging Se-tor. $n -ase of emp/oyment opportunities, .e2ti/e Se-tor s o1s t e ig est number of emp/oyees, fo//o1ed by agro-based Se-tor and t e /o1est number of emp/oyees is seen in Printing, Pub/is ing and Pa-!aging Se-tor. . ere is no -onsisten-y bet1een investment and number of emp/oyments. . is mig t be appened be-ause of -apita/ intensive and /abor intensive pro<e-ts.

. e figure-) s o1s (&&8foreign investment in different se-tor. . e servi-e se-tor investment a/one ;*.(&8 and investment in - emi-a/ se--tor is )*.'(8. . e /o1est investment in Printing pub/is ing and pa-!aging is a--ounted on/y &.&'8 of tota/ investment. . e 3D$ investment f/o1s ave -ome from many -ountries. . e 3D$ inf/o1s -oming from top ten -ountries are presented in .ab/e :@ .ab/e : presents t e investment inf/o1s, number of units and emp/oyment opportunities of ten top investing -ountries. . ere are f/u-tuations in invested amount, emp/oyment opportunities and number of units in t e -ountries. . e .ab/e -/arifies t at t ere is no -orre/ation bet1een amount invested and emp/oyment opportunities. . is may be appened be-ause of t e -apita/ intensive and /abor intensive natures of investment. United ,rab Emirates invested t e ig est amount in ; nits, fo//o1ed by "ingdom of Saudi ,rabia in : units 1 i/e emp/oyment generation of United ,rab Emirates is ;,5(' and "ingdom of Saudi ,rabia is ),(5:. . e /o1est investment is seen for C ina, but emp/oyment generation from t e investment is ?&?(. . e ig est emp/oyment generation -omes from t e investment of Sout "orea and t e /o1est emp/oyment generation -omes from t e investment of Egypt. .ab/e 5 presents t e 3D$ inf/o1s and emp/oyment opportunities t roug <oint venture investments in +ang/ades . . ere are f/u-tuations in 3D$ inf/o1s and emp/oyment opportunities over t e years as seen in t e .ab/e. . e ig est investment inf/o1s are seen in )&&*, fo//o1ed by CC?. . e /o1est investment inf/o1s are seen in (CC(. . e ig est emp/oyment opportunities are seen in )&&;, fo//o1ed by )&&?. . e /o1est emp/oyment opportunities are seen in (CC(. re/ations ip bet1een invested amount and emp/oyment opportunities is not -onsistent. . ere ay be t e reasons of -apita/ intensive and /abor intensive pro<e-ts

3oreign investors t roug <oint venture pro<e-ts ave -ome from different -ountries. . e top ten -ountries from 1 ere investors ave -ome to +ang/ades are s o1n in .ab/e ;.

. e ig est 3D$ <oint venture investment as -ome from "ingdom of Saudi ,rabia, fo//o1ed by #or1ay. e /o1est 3D$ <oint venture investment as -ome from t e United ,rab Emirates. $n terms of emp/oyment opportunities United "ingdom as s o1n t e ig est investment opportunities and /o1est emp/oyment opportunities are seen for t e "ingdom of Saudi ,rabia. e a-tua/ 3D$ investment inf/o1s ave not been e4ua/ to registered 3D$ investment inf/o1s as presented ear/ier. . e year-1ise a-tua/ 3D$ inf/o1s into +ang/ades during (CC;-)&&C are presented in .ab/e ?@ .ab/e ? s o1s t e ig est a-tua/ 3D$ inf/o1s into +ang/ades in )&&* fo//o1ed by t e year )&&; and t e /o1est a-tua/ 3D$ investment inf/o1s are seen (CC; fo//o1ed by t e year (CCC. . e ig est 3D$ inf/o1s n terms of fi2ed -apita/ formation is seen in t e year (CC? fo//o1ed by t e year (CC*. . e /o1est 3D$ inf/o1s in terms of fi2ed -apita/ formation are seen in t e year (CC; and )&&' fo//o1ed by t e year (CCC. . e tab/e as not s o1n t e -onsistent a-tua/ 3D$ inf/o1s into +ang/ades . . is mig t be appened e-ause of po/iti-a/ instabi/ity of t e -ountry, inade4uate infrastru-ture fa-i/ities, redtapism, inade4uate fis-a/ and finan-ia/ in-entives to1ards foreign investors and nonresident +ang/ades i investors et-. among t e fa-tors, po/iti-a/ instabi/ity and inade4uate infrastru-ture fa-i/ities are -onsidered to be dominant. . e a-tua/ investment in terms of registered investment is not satisfa-tory. . e registered 3D$ investment inf/o1s and a-tua/ 3D$ investment inf/o1s into +ang/ades are resented in .ab/e *@

Con- u&!ng Rema"8( . e study dea/s 1it t e nature of e-onomy of +ang/ades . Kevie1 of t e re/ated /iterature points out t at e-onomi- deve/opment of a -ountry /i!e +ang/ades by and /arge depends upon 3D$ inf/o1s into +ang/ades . .o attra-t more 3D$, t e 7overnment of t e Peop/eIs Kepub/i- of +ang/ades as offered many in-entives for foreign investors. Sti//, it is seen in t e study t at a-tua/ 3D$ investment as been remain at very insignifi-ant /eve/ -ompared to fi2ed -apita/ formation and registered 3D$ investment proposa/. 3or better 3D$ investment f/o1s, t e study as out/ined t e fo//o1ing possib/e suggestions@ 5i6 $n addition to t e in-entives offered to attra-t 3D$ inf/o1s, t e 7overnment of +ang/ades is to ensure po/iti-a/ stabi/ity of t e -ountry. . e investors need to !eep t eir investment se-ured 1it out fa-ing any prob/em. . oug t ere are many agreements bet1een +ang/ades and ot er -ountries, it 1i// not bring positive resu/ts unti/, t e 7overnment and opposition po/iti-a/ parties 1or! a/toget er. 5ii6 $n order to find out /oop o/es of our 3D$ po/i-ies, t e 7overnment s ou/d -ompare our 3D$ po/i-ies 1it t e 3D$ po/i-ies of su--essfu/ -ountries

Refe"en-e(
(. . e Hor/d +an! 5(CC;6, World Debt Tables: !ternal "inance for Developing Countries, Jo/.(, Has ington, D.C., US, ). 7ray, S.A. 5et a/, )&&(6, G o'a A--ount!ng an& Cont"o : A manage"!a Em#1a(!(+ A on Hi/ey and sons, $n-,, #e1 Lor!, p. (. '. +ende #obende, ,. 5et a/, )&&)6, "oreign Direct #nvestment in ast Asia: Trend and Developments, A(!a Pa-!f!- :ou"na of E-onom!-( an& ,u(!ne((, Jo/. ;5(6 , pp.:-)5. :. 3ind/ay, K. 5(C?*6, $elative %ac&'ardness, Direct "oreign #nvestment and the Transfer of Technolog(: A )imple D(namic *odel , ;ua"te" % :ou"na of E-onom!-(, Jo/. C),pp. (-(;. 5. Caves, K. E.5(CC;6, Mu/tinationa/ Enterprise and E-onomi- ,na/ysis, )nd ed., Cambridge University Press, Cambridge.