Analysis of Investment Opportunities for a Us-Based Mnc in Bangladesh

ASSIGNMENT ONE |

FIN444: INTERNATINAL FINANCIAL MANAGEMENT |

Analysis of investment opportunities for a US-based MNC in Bangladesh |

GROUP MEMBERS:IFTESHAM ARA JAHANSIDRATUL MUNTAHA KHAN |

Table of Contents

Analysis of Current A/C and Balance of Trade of Bangladesh 3

Current Account Balance 3

Balance of Trade 4

Capital Account 9

Recent Capital Account of Bangladesh 9

Remittance 11

Remittances and the Macroeconomics of Bangladesh 14

Patent and Natural Resources 16

Financial Account Balance 18

FDI, Portfolio and Other Investments 19

Foreign Exchange Reserve 20

Balance of Payment 22

Tax Codes, Interest Rate and Inflation in Bangladesh 0

Investment Freedom 0

Economic Freedom in Bangladesh 0

Inflation Rate 1

Impact of Inflation on MNC 2

Interest Rate 3

Tax Codes 4

Investment opportunities in Bangladesh 8

Energy and infrastructure 9

Life science 10

ICT and Business Services 11

Attractiveness of Investing in Bangladesh 13

Difficulty faced when investing in Bangladesh 14

Bibliography 15

Analysis of Current A/C and Balance of Trade of Bangladesh

The current account is one of the two primary components of the balance of payments, the other being capital account. It is the sum of the balance of trade (i.e., net earnings on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.

The current account balance is one of two major measures of the nature of a country's foreign trade (the other being the net capital outflow). A current account surplus increases a country's net foreign assets by the corresponding amount, and a current account deficit does the reverse. Both government and private payments are included in the calculation. It is called the current account because goods and services are generally consumed in the current period.

The balance of trade is the difference between a nation's exports of goods and services...