ASSIGNMENT

on

Comparing & analyzing six countries Export and import data

Course: MGT 5189: International Business Prepared for
Dr. M. Zillur Rahman Asstt. Professor (PhD) Department of Business Administration

Southeast University, Dhaka

Prepared by
M. RAKIBUR RAHMAN SIDDIQUE SHARIF MAHMUD MOUSOMI SHABNAM (ID-2010210004020) (ID-2010210004021) (ID-2010210004029)

Semester 2nd, Batch 7 (A), MBA

Date of Submission: December 10, 2011

LETTER OF TRANSMITTAL To

SOUTHEAST UNIVERSITY

Dr. M. Zillur Rahman Asstt. Professor (PhD) Department of Business Administration Southeast University Sub: Submission of assignment on - Comparing Six countries Export & Import data. Dear Sir, Here is an assignment on project Comparing Six countries Export & Import data. This assignment was assigned to us to comparing between several countries Export & Import data. This report concentrates on six countries. We tried to gather and collection of information to make our report specific. Through the procedure of preparing the report we developed a clear understanding of these countries Export of goods, services and workers remittance and Import of goods and services. We tried our best to make this Project as reflective as possible. We appreciate to provide any information or classification if necessary. Thank you for consideration. Yours sincerely, M. Rakibur Rahman Siddique Sharif Mahmud Mousomi Shabnam

ACKNOWLEDGEMENT

The submission of this assignment on project Comparing Six countries Export & Import data is a very happy Occasion for us. The successes of this assignment depend on the contribution of number of people especially those who have shared their thoughtful guidance and suggestions to improve this report. This assignment has created a great deal of interest in us. We must thank a few people who help and encouraged us to grow our interest. First of all, , we would like to give a special thanks to the Almighty for given us such patience and power for completing this assignment and last but not least we would like to thank our honorable course teacher " Dr. M. Zillur Rahman for his proper guidance and care. Without his guidance and suggestions we couldn't have completed this assignment properly. He has instructed us how to prepare a report correctly.

ECONOMY OF BANGLADESH

At April 2010, USA - based ratings agency Standard & Poor's (S&P) awarded Bangladesh a BB- for a long term in credit rating which is below India and well over Pakistan and Sri Lanka in South Asia. And, despite continuous domestic and international efforts to improve economic and demographic prospects, Bangladesh remains a developing nation. However, Bangladesh gradually decreased its dependency on foreign grant and loan from 85% (In 1988) to 2% (In 2010) for its annual development budget. Its per capita income in 2010 was US$641 compared to the world average of $8,985. But, if purchasing power parity (PPP) is taken into account, Bangladesh's economy is the 44th largest in the world at US$257 billion according to the IMF. Jute was once the economic engine of the country. Its share of the world export market peaked in the Second World War and the late 1940s at 80% and even in the early 1970s accounted for 70% of its export earnings. However, polypropylene products began to substitute for jute products worldwide and the jute industry started to decline. Bangladesh grows very significant quantities of rice, tea, potato, mango, onion and mustard. According to FAOSTAT, Bangladesh is one of world's largest producers of: Rice (4th), Potato (11th), Mango (9th), Pineapple (16th), Fruit, Tropical (5th), Onion (16th), Banana (17th), Jute (2nd), Tea (11th). Although two-thirds of Bangladeshis are farmers, more than three quarters of Bangladeshs export earnings come from the garment industry, which began attracting foreign investors in the 1980s due to cheap labour and low conversion cost. In 2009-10 fiscal year the industry exported US$ 12.6 billion worth of products where in 2002 the exported amount was US$ 5 billion. Recently Bangladesh has been ranked as the 4th largest clothing exporter by the WTO (The World Trade Organization).The industry now employs more than 3 million workers, 90% of whom are women. A large part of foreign currency earnings also comes from the remittances sent by expatriates living in other countries. Bangladesh has seen a dramatic increase in foreign direct investment. A number of multinational corporations and local big business houses such as Beximco, Square, Akij Group, Ispahani, Navana Group, Transcom Group, Habib Group, KDS Group, Dragon Group and multinationals such as Unocal Corporation and Chevron, have made major investments, with the natural gas sector being a priority. In December 2005, the Central Bank of Bangladesh projected GDP growth around 6.5%. In order to enhance economic growth, the government set up several export processing zones to attract foreign investment. These are managed by the Bangladesh Export Processing Zone Authority. One significant contributor to the development of the economy has been the widespread propagation of microcredit by Muhammad Yunus (awarded the Nobel peace prize in 2006) through the Grameen Bank. By the late 1990s,

Grameen Bank had 2.3 million members, along with 2.5 million members of other similar organizations.

ECONOMY OF INDIA
India has the eleventh-largest national economy by GDP (US$1.43 trillion) and the fourth largest by PPP ($4 trillion). With its average annual GDP growth at 5.8 percent for the past two decades, India is also one of the fastest growing economies in the world.[127] However, India's per capita income is $1,000, and the country ranks 142th in nominal GDP per capita and 127th in GDP per capita at PPP. With 467 million workers, India has the world's second largest labour force. The service sector makes up 54 percent of the GDP, the agricultural sector 28 percent, and the industrial sector 18 percent. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, and potatoes. Major industries include textiles, telecommunications, chemicals, food processing, steel, transport equipment, cement, mining, petroleum, machinery and software. In 2008, India's share of world trade was 1.68 percent; India was the world's fifteenth largest importer in 2009, and the eighteenth largest exporter. Major exports include petroleum products, textile goods, gems and jewelry, software, engineering goods, chemicals, and leather manufactures. Major imports include crude oil, machinery, gems, fertilizer, and chemicals. Averaging an economic growth rate of 7.5 percent during the last few years, India has more than doubled its hourly wage rates during the last decade. Moreover, since 1985, India has moved 431 million of its citizens out of poverty, and by 2030 India's middle class numbers will grow to more than 580 million. Although ranking 51st in global competitiveness, India ranks 16th in financial market sophistication, 24th in the banking sector, 27th in business sophistication and 30th in innovation, ahead of several advanced economies. With seven of the world's top 15 technology outsourcing companies based in India, the country is viewed as the second most favourable outsourcing destination after the United States. India's consumer market, currently the world's thirteenth largest, is expected to become fifth largest by 2030. Its telecommunication industry, the world's fastest growing, added 10 million subscribers during 200809; its automobile industry, the world's second-fastest growing, increased domestic sales by 26 percent during 200910, and exports by 36 percent during 200809. India's GDP at purchasing power parity is expected to overtake that of Japan during 2011 and that of the United States by 2045. Moreover, during the next four decades, India's economy is expected to grow at an average of 8

percent, making the nation potentially the world's fastest growing major economy until 2050. The report also highlights some of the key factors behind high economic growtha young and rapidly growing working population; growth of the manufacturing sector due to rising levels of education; and sustained growth of the consumer market due to a rapidly expanding middle class. However, the World Bank cautions that for India to achieve its economic potential, it must continue to focus on public sector reform, transport infrastructure, agricultural and rural development, removal of labor regulations, education, energy security, and public health and nutrition.

ECONOMY OF SRI LANKA

In the 19th and 20th centuries, Sri Lanka became a plantation economy, famous for its production and export of cinnamon, rubber and Ceylon tea, which remains a trademark national export. The development of modern ports under British rule raised the strategic importance of the island as a centre of trade. During World War II, the island hosted important military installations and Allied forces. However, the plantation economy aggravated poverty and economic inequality. From 1977 the UNP government began incorporating privatization, deregulation and the promotion of private enterprise. While the production and export of tea, rubber, coffee, sugar and other agricultural commodities remains important, the nation has moved steadily towards an industrialized economy with the development of food processing, textiles, telecommunications and finance. By 1996 plantation crops made up only 20% of export, and further declined to 16.8% in 2005 (compared with 93% in 1970), while textiles and garments have reached 63%. The GDP grew at an average annual rate of 5.5% during the early 1990s, until a drought and a deteriorating security situation lowered growth to 3.8% in 1996. The economy rebounded in 19972000, with average growth of 5.3%. The year of 2001 saw the first recession in the country's history, as a result of power shortages, budgetary problems, the global slowdown, and continuing civil strife. But today Sri Lanka has the highest per capita income in South Asia. About 14% of the population lives on less than US$ 1.25 per day. Sri Lanka, with an income per head of US$1,972, still lags behind some of its neighbours including Maldives but is ahead of its giant neighbour India. Its economy grew by an average of 5% during the 1990s during the 'War for Peace' era. According to the Sri Lankan central bank statistics, the economy was estimated to have grown by 7% last year, while inflation reached 20%.

Parts of Sri Lanka, particularly the South and East coast, were devastated by the 2004 Asian Tsunami. The economy was briefly buoyed by an influx of foreign aid and tourists, but this was disrupted with the reemergence of the civil war resulting in increased lawlessness in the country and a sharp decline in tourism. But following the end of the 3 decade long separatist war in May 2009 tourism has seen a steep uptick. Also the end of war has ensured the rule of law in the whole of the island. Recently, New York Times has placed Sri Lanka Number 1 in 31 places to go in 2010.

ECONOMY OF PAKISTAN
Pakistan has a semi-industrialized economy. The growth poles of the Pakistani economy are situated along the Indus River. Diversified economies of Karachi and Punjab's urban centers coexist with lesser developed areas in other parts of the country. Despite being a very poor country in 1947, Pakistan's economic growth rate has been better than the global average during the subsequent four decades, but imprudent policies led to a slowdown in the late 1990s. Recently, wide-ranging economic reforms have resulted in a stronger economic outlook and accelerated growth especially in the manufacturing and financial services sectors. Since the 1990s, there has been great improvement in the foreign exchange position and rapid growth in hard currency reserves. The 2005 estimate of foreign debt was close to US$40 billion. However, this has decreased in recent years with assistance from the International Monetary Fund and significant debt-relief from the United States. Pakistan's gross domestic product, as measured by purchasing power parity, is estimated to be $475.4 billion while its per capita income stands at $2,942. The poverty rate in Pakistan is estimated to be between 23% and 28%. GDP growth was steady during the mid-2000s at a rate of 7%; however, slowed down during the Economic crisis of 2008 to 4.7%. A large inflation rate of 24.4% and a low savings rate, and other economic factors, continue to make it difficult to sustain a high growth rate. Pakistan's GDP is US$167 billions, which makes it the 48th-largest economy in the world or 27th largest

by purchasing power adjusted exchange rates. Today, Pakistan is regarded as to having the second largest economy in South Asia. The structure of the Pakistani economy has changed from a mainly agricultural base to a strong service base. Agriculture now only accounts for roughly 20% of the GDP, while the service sector accounts for 53% of the GDP. Significant foreign investments have been made in several areas including telecommunications, real estate and energy. Other important industries include apparel and textiles (accounting for nearly 60% of exports), food processing, chemicals manufacture, and the iron and steel industries. Pakistan's exports in 2008 amounted to $20.62 billion (USD). Pakistan is a rapidly developing country. However, the economic crisis of 2008 led Pakistan to seek more than $100 billion in aid in order to avoid possible bankruptcy. This was never given to Pakistan and it had to depend on a more aggressive fiscal policy, backed by the IMF. A year later, Asian Development Bank reported that the Pakistan economic crisis was easing. Furthermore it is projected that in 2010 Pakistan economy would grow at least 4% and could grow more with strong international economic recovery.

ECONOMY OF JAPAN
From 1868, the Meiji period launched economic expansion in Japan as Meiji rulers embraced the market economy. Many of today's enterprises were founded at the time, and Japan emerged as the most developed nation in Asia. The period of overall real economic growth from the 1960s to the 1980s has been called a "Japanese miracle": it averaged 7.5 percent in the 1960s and 1970s, and 3.2 percent in the 1980s and early 1990s. Growth slowed markedly in the 1990s during what the Japanese call the Lost Decade, largely because of the after-effects of the Japanese asset price bubble and domestic policies intended to wring speculative excesses from the stock and real estate markets. The economy showed strong signs of recovery after 2005; GDP growth for that year was 2.8 percent, surpassing the growth rates of the US and European Union during the same period. As of 2010, Japan is the third largest national economy in the world, after the United States and China, in terms of both nominal GDP and purchasing power parity. As of January 2011, Japan's public debt was more than 200 percent of its annual gross domestic product, the largest of any nation in the world. The service sector accounts for three quarters of the gross domestic product. Japan has a large industrial capacity, and is home to some of the largest and most technologically advanced producers of motor vehicles,

electronics, machine tools, steel and nonferrous metals, ships, chemical substances, textiles, and processed foods. Agricultural businesses in Japan often utilize a system of terrace farming, and crop yields are high; 13 percent of Japan's land is cultivated. Japan accounts for nearly 15 percent of the global fish catch, second only to China. As of 2010, Japan's labor force consisted of some 65.9 million workers. Japan has a low unemployment rate of around four percent. Almost one in six Japanese, or 20 million people, lived in poverty in 2007. Housing in Japan is characterized by limited land supply in urban areas; more than half of all Japanese live in suburbs or more rural areas, where detached houses are the dominant housing type. Japan's exports amounted to US$4,210 per capita in 2005. Japan's main export markets are China (18.88 percent), the United States (16.42 percent), South Korea (8.13 percent), Taiwan (6.27 percent) and Hong Kong (5.49 percent) as of 2009. Its main exports are transportation equipment, motor vehicles, electronics, electrical machinery and chemicals. Japan's main import markets as of 2009 are China (22.2 percent), the US (10.96 percent), Australia (6.29 percent), Saudi Arabia (5.29 percent), United Arab Emirates (4.12 percent), South Korea (3.98 percent) and Indonesia (3.95 percent). Its main imports are machinery and equipment, fossil fuels, foodstuffs (in particular beef), chemicals, textiles and raw materials for its industries. Japan ranks 12th of 178 countries in the 2008 Ease of Doing Business Index and has one of the smallest tax revenues of the developed world. It has some of the world's largest banks, and the Tokyo Stock Exchange (known for its Nikkei 225 and Topix indices) stands as the second largest in the world by market capitalization. Japan is home to 326 companies from the Forbes Global 2000 or 16.3 percent (as of 2006).

ECONOMY OF UNITED STATES

The United States has a capitalist mixed economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the U.S. GDP of $14.870 trillion constitutes 24% of the gross world product at market exchange rates and almost 21% of the gross world product at purchasing power parity (PPP). It has the largest national GDP in the world, though it is about 5% less than the GDP of the European Union at PPP in 2008. The country ranks ninth in the world in nominal GDP per capita and sixth in GDP per capita at PPP. The United States is the largest importer of goods and third largest exporter, though exports per capita are relatively low. In 2008, the total U.S. trade deficit was $696 billion. Canada, China, Mexico, Japan, and Germany are its

top trading partners. In 2007, vehicles constituted both the leading import and leading export commodity. Japan is the largest foreign holder of U.S. public debt, having surpassed China in early 2010. The United States ranks second in the Global Competitiveness Report. In 2009, the private sector was estimated to constitute 55.3% of the economy, with federal government activity accounting for 24.1% and state and local government activity (including federal transfers) the remaining 20.6%. The economy is postindustrial, with the service sector contributing 67.8% of GDP, though the United States remains an industrial power. The leading business field by gross business receipts is wholesale and retail trade; by net income it is manufacturing. Chemical products are the leading manufacturing field. The United States is the third largest producer of oil in the world, as well as its largest importer. It is the world's number one producer of electrical and nuclear energy, as well as liquid natural gas, sulfur, phosphates, and salt. While agriculture accounts for just under 1% of GDP, the United States is the world's top producer of corn and soybeans. The New York Stock Exchange is the world's largest by dollar volume. Coca-Cola and McDonald's are the two most recognized brands in the world. In August 2010, the American labor force comprised 154.1 million people. With 21.2 million people, government is the leading field of employment. The largest private employment sector is health care and social assistance, with 16.4 million people. About 12% of workers are unionized, compared to 30% in Western Europe. The World Bank ranks the United States first in the ease of hiring and firing workers. In 2009, the United States had the third highest labor productivity per person in the world, behind Luxembourg and Norway. It was fourth in productivity per hour, behind those two countries and the Netherlands. Compared to Europe, U.S. property and corporate income tax rates are generally higher, while labor and, particularly, consumption tax rates are lower.

INTRODUCTION
In this assignment our first target is to compare the Export of goods, services and workers remittance data and Import of goods and services data of Bangladesh with our South Asian three countries India, Sri Lanka and Pakistan. After completing that we are very much interested to compare these data with the leading economic counties like Japan and United States. Which shows a wonderful comparison of Bangladesh.

CONCLUSION
After completing this assignment we learnt a lot. We have a clear overview of Bangladeshs Export & Import condition and comparing with other leading countries, we have a wonderful idea and we build a lifetime knowledge which can show us farther improvement of our studies.

REFERENCE

http://worldbank.org/ http://wikipedia.org/ Honorable Professor Microsoft Excel