Welcome

Phoenix

 Group Members

Md. Abdullah Al Mamun
Biplab Babu
Md. Shaheduzzaman
Kazi Md. Zahir Sadi
Tanmay Biswas
 ABOUT MYSELF :
Name : Md. Abdullah Al Mamun.
SN : 20121205038
Year-IV Semester-I

Dept. of Management Studies
BSMRSTU
Trade relation between
Bangladesh & USA

Trade Relation Between Bangladesh &USA
1. Definition of International Business

2. General Information About Bangladesh
3. General Information About USA
4. Bilateral Trade Relation
5. Benefits of entering USA market
6. Bangladesh Export to the United States
7. Bangladesh Import from the United States
8. FDI of USA in Bangladesh
9. Bangladesh Balance of Payment with USA
10. SWOT analysis between Trade relationships of Bangladesh
& USA
11. Recommendations
Definition of International Business
International Business which consists of all commercial
transactions including sales, investments and
transportation that take place between two or more
countries. Private company undertakes such transaction
for profit ,Government undertakes such transaction either
for profit or for political reasons.
General Information About Bangladesh
 General Information About USA

The United States is a country located in North America

bordering the Atlantic Ocean and Pacific Ocean.
Neighboring countries are Canada and Mexico. The
government system is a constitution-based federal republic
with a strong democratic tradition. The chief of state and
head of government is the President. United States has an
advanced mixed economy in which there is a variety of
private freedom, combined with centralized economic
planning and government regulation.).
 Bilateral Trade Relation
USA is Bangladeshs most important trading partner, with about a
quarter of its exports being destined for USA. Bangladesh exported

worth $5583.62 million to USA in the last year, with more than 90
percent being the clothing items. Bangladesh-USA relations date
back to the 1970s when the USA recognized Bangladesh as a
sovereign state on 4th April, 1972.US assistance began to flow for
the rehabilitation of Bangladesh and the first direct assistance from
the USA totalled $ 122.2 million in 1972.
 Benefits of entering USA market
Duty free, quota free access to USA market:
According to media reports Bangladesh has
urged Washington to consider duty-free and
quota-free access of Bangladeshi products,
particularly readymade garment (RMG)
products, to US market.
Generalized System of Preferences (GSP):-
The Generalized System of Preferences (GSP)
is a U.S.A trade program designed to promote
economic growth in the developing world by
providing preferential duty-free entry for up to
4,800 products from 129 designated
beneficiary countries and territories.
BiplobBabuManagement
SN20121105023Studies

BangabandhuSheikhMujiburRahman
Science&TechnologyUniversity
Bangladesh Export to
the United States
 Export marketing involves preparing an
offering that will entice the foreign
buyer and customer. This offering
comprises a product that is offered at a
certain price and that is made available
distributed to the foreign customer.
 Bangladesh was the United States' 46th
largest supplier of goods imports in
2014. Bangladesh goods export to USA
totaled $5.58 billion in 2014, a 3.02 %
increase ($116 million) from 2013, and
up 158% from 2003.
 Basic Export product list
Chemical products
Fish, Shrimps and prawns
Frozen food,
Bicycle,
Handicrafts,
Jute Manufactures,
Leather and Leather
Manufactures,
Readymade garments,
Footwear,
Tea,
 Major Export Items
Products Amount
Woven Garments $3943.522 million
Knitwear $1197.853 million
Home Textile $137.135 million
Agri Products $24.002 million
Frozen Food $55.063 million
Leather & Leather Products $13.151 million
Footwear $44.87 million
Raw Jute $2.419 million
Jute Goods $15.929 million
Bicycle $0.123 million
Tobacco $11 million
Others $138.554 million
Year Export
export

$5,583,620,000

$5,419,600,000
2014 $5,583,620,000

$5,107,520,000
$5,100,910,000
2013 $5,419,600,000

2012 $5,100,910,000

$3,974,077,490
2011 $5,107,520,000

$3,473,798,509
$3,473,798,509

$3,234,917,157

$2,979,025,158
2010 $3,974,077,490

$2,473,678,657
2009 $3,473,798,509

$2,068,453,045

$1,888,968,438
2008 $3,473,798,509

2007 $3,234,917,157

2006 $2,979,025,158

2005 $2,473,678,657

2004 $2,068,453,045

2003 $1,888,968,438 E xport

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Chart: Yearly Export Chart: Yearly Export

 Bangladesh Import from the
United States
Bangladesh was the United
States' 90th largest goods export
market in 2014. Bangladesh
goods import from USA in 2014
was $837.18 million, up 55.79%
($299.79 million) from 2013 and
up 348.45% from 2003.
 BasicImportproductlist
Nuclear reactor, boilers, mechanical
appliances; Live animals, animal
products
Animal or vegetable fats and oils and
their cleavage products; animal or
vegetable waxes
Textiles and textile articles
Electrical machinery and equipment
and parts
Vehicles, aircraft, and associated
transport equipment
 BasicImportproductlist

Miscellaneous chemical products

Plastics and articles thereof
Pharmaceutical products
Parts and accessories thereof
Fertilizer
Man- made staple fibers
Cotton (all types), thread and cotton
fabrics
 BasicImportproductlist

Ships, boats and floating structures

Medical or surgical instruments and apparatus, parts
Soap, organic surface-active agents, washing
preparations, lubricating preparations
 Major Import Items
Item Amount
Machinery $136.0 million
Cotton, Yarn and Fabric $121.0 million
Electrical Machinery $67.0 million
Food industries $43.0 million
Iron and Steel $ 41.0 million
Parts and accessories $ 32.0 million
Plastics and articles $ 22.0 million
Miscellaneous Grain, Seed, and Fruit $21.0 million
Organic chemicals $12.0 million
Pulp of wood $7.0 million
Miscellaneous chemical products $7.5 million
Dairy product $1.0 million
Others $326.0 million
Year Import
import

$837,180,000
2014 $837,180,000

$705,060,000
2013 $537,390,000

$680,110,000
2012 $705,060,000

$537,390,000
2011 $680,110,000

$499,508,678
2010 $499,508,678

$390,791,125

$372,153,489
$369,867,429
2009 $369,867,429

$267,413,787

$239,342,803

$235,759,021
2008 $390,791,125

$186,684,060
2007 $372,153,489

2006 $267,413,787

2005 $239,342,803

2004 $235,759,021 I mpor t

2003 $186,684,060 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Chart: Yearly Import Chart: Yearly Import

Bilateral Trade Relation
 Bangladesh-USA relations date back to the 1970s when the
USA recognized Bangladesh as a sovereign state on 4th April,
1972.US assistance began to flow for the rehabilitation of
Bangladesh and the first direct assistance from the USA
totaled $122.2 million in 1972.

USA is the most important & single largest trading partner of

Bangladesh with about a quarter of its exports being destined
for USA Bangladesh was the 57th largest trading partner of
USA in 2011. Recently Bangladesh has been graduated to 2nd
largest apparel exporter to USA market.
Bilateral Trade between Bangladesh and USA (Value in Million Taka)
(Value in Million US $)
Year Export Import Trade Ratio
2005-06 204303.02 23162.9 1:0.11
(3039.77) (345.30)
2006-07 238500.2 26304 1:0.11
(3453.52) (381.05)
2007-08 246312.48 33627.7 1:0.14
(3590.56) (490.19)
2008-09 278777.81 31723.1 1:0.11
(4052.00) (461.09)
2009-10 273293.37 32479 1:0.12
(3950.47) (469.48)
2010-11 363502.48 48403.5 1:0.13
(5107.52) (680.11)
2011-12 403482 55770.1 1: 0.14
(5100.91) (705.06)
2012-13 433134.59 42948.5 1:0.099
(5419.60) (537.39)
2013-14 433959.02 64990.6 1:0.15
(5583.62) (837.18)
 433134.59 433959.02
403482
363502.48

278777.81 273293.37
238500.2 246312.48

204303.02

55770.1 64990.6
48403.5 42948.5
26304 33627.7 31723.1 32479
23162.9

Export Import

Export & Import Relationship between Bangladesh and USA

MD.SHAHEDUZZAMAN
SN:20121205044
MANAGEMENT STUDIES
BSMRSTU
 FDI of USA in Bangladesh
Bangladesh Balance of Payment with USA
 Foreign direct investment
(FDI)
Foreign direct investment (FDI) is an investment in a
business by an investor from another country for which the
foreign investor has control over the company purchased.
The Organization of Economic Cooperation and
Development (OECD) defines control as owning 10% or
more of the business. Businesses that make foreign direct
investments are often called multinational corporations
(MNCs) or multinational enterprises (MNEs).
FDI of USA in Bangladesh..
Year FDI in million
US$
2005-06 46.29
2006-07 17.89
2007-08 39.55
2008-09 15.35
2009-10 43.63
2010-11 46.71
2011-12 15.09
2012-13 42.36
FDI of USA in Bangladesh
FDI of USA in Bangladesh:

46.29 46.71
43.63
42.36
39.55

17.89
15.35 15.09

2005-06 2006-07 2007-08 2008-09 2009-2010 2010-11 2011-12 2012-13

 Balance of payments

The Balance of payment of a country is systematic

record of all its economic transactions with the outside
world in a given year.
Sources of funds for a nation such as exports or the
receipts of loans and investment are recorded as
positive or surplus items.
Uses of funds, such as for imports or to invest in
foreign countries, are recorded as negative or deficit.
Bangladesh Balance of Payment with USA
Year Money out Flow Money Inflow BOP
2015 116.6 985.7 869.1
2014 1,088.40 5,278.30 4189.9
2013 708.7 5,355.80 4647.1
2012 708.7 5,355.80 4647.1
2011 1,144.10 4,877.10 3733
2010 575.7 4,293.90 3718.2
2009 434.6 3,699.00 3264.4
2008 468.1 3,748.40 3280.3
2007 456 3,432.10 2976.1
2006 333 3,271.40 2938.4
2005 319.8 2,693.00 2373.2
2004 289.3 2,302.60 2013.3
2003 225.9 2,073.90 1848
2002 269.2 2,134.10 1864.9
2001 307 2,358.90 2051.9
2000 239 2,417.50 2178.5
Bangladesh Balance of Payment with
USA
5000
BOP
4647.1 4647.1
4500 4189.9
4000 3733 3718.2

3500 3264.4 3280.3

2976.1 2938.4
3000

2500 2373.2
2178.5
2013.3 2051.9
2000 1848 1864.9

1500

1000 869.1

500

0
0 2 4 6 8 10 12 14 16 18
Cash inflow and outflow
6000

5000

4000

3000

2000

1000

0
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Import Export
 Name: Kazi Md. Zahir Sadi
SN: 20121205037
Semester-I, Year-IV
Dept. of Management Studies
 Topic:
SWOT analysis between Trade
relationships of Bangladesh & USA.
 SWOT Analysis
SWOT is a common method of analyzing market
environment. It helps in measuring the companys
resources to the environment in which the company
is operating. SWOT stands for strengths, weaknesses,
opportunities and threats. Strengths and weaknesses
measure the internal environmental factors as the
opportunities and threats are external factors.
Strength
No. Bangladesh USA
1. Human resource Develop Technology

2. Low labor cost Huge market Share

3. Exporting 5.58 billion of total export Strong trade policy

4. Hand-made products are more qualitative Available huge FDI

5. excellent diplomatic, economic and Increasing GDP for free trade policy
military relations.
6. BOP is favorable over some years FDI of in BD (stock) is $42.36 million

7. Trade surplus for last decade Big export Market of USA

Weakness
No.
Bangladesh USA

1. Technological barrier Export only 837 million

2. Import 136 million machinery from USA Import 24.002 million agricultural
product

3. Export licensing process Trade deficit with Bangladesh was

$4.75 billion

4. Import charges High labor cost

5. Safety limitation in factories Not agriculturally develop

Opportunity

No.
Bangladesh USA

1. Getting less duties and tariffs in export Get imported product in lower price

2. As SAARC nation enjoy benefit of regional Exports of agricultural products

accumulation $25.3 million

3. BD.is 46th largest supplier of USA goods BD is 90th largest goods export
market of USA
Threat
No.
Bangladesh USA
1. Quantities restrictions Import Tobacco ($11 million)
Bangladesh

2. 80% of our industry faced technological Faced human resource problem

problem

3. SME faced problem though investment is Some other country enter into
much high Bangladeshi market.

4.
Some other nations also have in China and Japan is main concern of
conceder to USA for trading USA trading with Bangladesh.
 Name: Tanmay Biswas
SN: 20121105013
Year-IV Semester-I
Dept. of Management Studies
Recommendations
 Policy Recommendations
For Bangladesh
Policies should be more open to trade, investment, and

innovation.
Upgrading to existing health and safety policies in

Bangladesh.
Bangladesh should also improve compliance facilities,

ensure political stability, and improve utilities and port

facilities.
Bangladesh should stop export of frozen food.

Bangladesh should imports well fitted, cost effective, and

environmental friendly imports goods.

For USA
The USA should provide technical support and

arrange training for the workers, owners and

exporter.
USA should GSP facilities and more quota free access

to the USA market.

USA should keep the real exchange rate lower.

Flexible transparent regulatory systems.

Reduce export regulation.

 Conclusion

Bangladesh and the United States of America enjoy excellent diplomatic,

economic and military relations. The relationship between the two
countries is formed by strong bonds of friendship and shared values.
Bangladesh is a key US strategic partner in South Asia. The USA is a major
development partner of Bangladesh. On the economic front, American
companies are the largest foreign direct investors in Bangladesh, and the
USA is also the single largest market for Bangladeshi exports.
If you have any questions,
please
feel free to ask..
51