University of Central Punjab

Faculty of Commerce
INTERNATIONAL BUSINESS
Assignment no 3
Topic
Country political system and political risk
COUNTRY:
BANGLADESH

Submitted to:
Prof. Rehan Ahmad
Submitted by & Reg. no:
M. Awais G1F18MCOM (0072)
Class:
MCOM (Accounting & Finance) 4-B
Political system in host country
Democracy is in the People republic of Bangladesh and parliamentary system is used.
[ CITATION The20 \l 1033 ]

Macro political risk Long term political risk Strategies

A: Corruption
People republic of Bangladesh
is 146 least corrupt nation out
of 180 countries in the world.
[ CITATION TRA19 \l 1033 ]
B:Type of Govt.
Democracy is in the People
republic of Bangladesh and
parliamentary system is used.
[ CITATION The20 \l 1033 ]
C:Judical system
Supreme court of Bangladesh
(supreme court judges are
appointing by the president of
the country).
Criminal and civil courts
And the special courts in
which money lone, bankruptcy [ CITATION THE19 \l 1033 ]
courts and income tax
tribunals.[ CITATION com20 \l
1033 ]
Expropriation risk To hire the local labor
Bangladesh expropriation risk
(1=low and 7= high same sin Make the good relationship
2014 to 2019.The average with the political parties in the
value for Bangladesh during host country Bangladesh
that period was 3 index points.
Transfer risk diversification in production
The average value of transfer
risk in Bangladesh is 4 index
point from 2014 to 2019 in all
year that is same.
Political violence risk
There is low war risk in
Bangladesh but the political
instability risk at there that
why the average value of
political violence risk is point
5 index and the world average
is 3.

Micro political risk

A: Taxes Tax and tax rate in
Before the year ended 2018 Bangladesh
tax on the garments industry Corporate tax rate in
in the Bangladesh is higher Bangladesh is at 25% in 2019
and, in the year, the govt and the sale tax is on 15% in
reduce the tax rate that is good
the year of 2019
for the new Investore and forBut for the garment sectors tax
the local exporter [ CITATIONis at 12% and the tax at source
Tex18 \l 1033 ] on export items, except jute
B:Industry regulations goods, from 0.7% to 0.6% for
In Bangladesh industry the current fiscal year for
regulation includes is three garments sector [ CITATION
major elements employers. Tex181 \l 1033 ]
Workers and the government
 C:Local laws
For the Laboure work in
Bangladesh. Bangladesh
Laboure law Act 2006 and
labor rule 2015 are currently
in Bangladesh for the
industries in the country.
[ CITATION Tah19 \l 1033 ]

Bibliography
commanwelth governace. (2020). commanwelth governace bangladesh . Retrieved 5 12, 2020, from
commanwelth governace:Judicial System of Bangladesh:
http://www.commonwealthgovernance.org/countries/asia/bangladesh/judicial-system/
Tahmidur Rahman, S. A. (2019, 10 2). Employee Rights & Labour Law in Bangladesh – All you need to
know about Employment Law . Retrieved 5 13, 2020, from Tahmidur Rahman:
https://tahmidurrahman.com/employee-rights-labour-law-in-bangladesh/
Textile News. (2018). Bangladesh government cuts source tax for exports items, corporate tax for
RMG makers. Textile News.
Textile today. (2018). Bangladesh government cuts source tax for exports items, corporate tax for
RMG makers. Textile today.
The commanwealth. (2020). The commanwealth. Retrieved 5 12, 2020, from Bangladesh :
Constitution and politics: https://thecommonwealth.org/our-member-
countries/bangladesh/constitution-politics
THE GLOBAL ECONOMY. (2019). THE GLOBAL ECONOMY. Retrieved 5 13, 2020, from THE GLOBAL
ECONOMY:Bangladesh: Political risk, medium/long-term:
https://www.theglobaleconomy.com/Bangladesh/political_risk_long_term/
TRANSPIRANCY INTERNATIONAL. (2019). TRANSPIRANCY INTERNATIONAL. Retrieved 5 12, 2020,
from TRANSPIRANCY INTERNATIONAL:BANGLADESH:
https://www.transparency.org/country/BGD#