Bangladesh needs to diversify trade and investment
Salahuddin Ahmed | Tuesday, 24 February 2009
IN an increasingly interdependent world, trade and investment are crucial for every country. Like other countries, Bangladesh, too, in this contest, needs to diversify its trade and investment. Bangladesh's exports are limited to a few products or commodities, with fluctuating demand. Export diversification can ensure a more stable income inflow.
Export diversification calls for product development and marketing. Capacity building of entrepreneurs is a precondition for that. Trade management capacity, needs to be strengthened, too. The tariff structure should support export diversification. A management information system is also required to meet the needs of modern transactions and efficient trade activities. These all issues actually a country can develop to accelerate trade and investment.
For a Bangladeshi, it takes about 28 days to export his/her goods, compared to four days an Indian or Pakistani needs. It is important to analyse and get to the bottom of the export concerns.
Bangladesh's export of textile products constitutes almost 80 per cent of total exports from this country. For the export of products like vegetables, plastics, footwear, chemical products and machinery, Bangladesh has a small market share around the globe. In 2007 Bangladesh earned through export of textile and textile-related items Taka 583.6 billion out of a total export earning of Taka 832 billion.
Product adaptation is another vital issue that a company must comply with, to get greater market share. There are various products Bangladesh can export to different countries, but it should meet criteria. Bangladeshi companies can accordingly adapt their products because foreign consumers want it. Companies must modify their products in the light of the export markets. In the wake of global recession, Bangladesh's garments industry might need to modify its products to lower the prices.
Export diversification means producing newer items and exporting to more countries.
Bangladesh does not export much to neighbouring countries, but it imports much more from India and China. It is absolutely necessary for Bangladesh to explore markets in these countries. Bangladesh cannot sit idle. It should look for competitive advantage.
Export diversification requires extensive research on foreign markets. Bangladesh needs to provide a product or service to foreign customers according to their needs to increase sales.
Bangladesh needs to find out new trading partners. Various studies suggest that growth of exports is attributable to securing of new trading partners.
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The writer, an MBA Student and Graduate Assistant Ashland University, can be reached at: E-mail: [email protected]
Export diversification calls for product development and marketing. Capacity building of entrepreneurs is a precondition for that. Trade management capacity, needs to be strengthened, too. The tariff structure should support export diversification. A management information system is also required to meet the needs of modern transactions and efficient trade activities. These all issues actually a country can develop to accelerate trade and investment.
For a Bangladeshi, it takes about 28 days to export his/her goods, compared to four days an Indian or Pakistani needs. It is important to analyse and get to the bottom of the export concerns.
Bangladesh's export of textile products constitutes almost 80 per cent of total exports from this country. For the export of products like vegetables, plastics, footwear, chemical products and machinery, Bangladesh has a small market share around the globe. In 2007 Bangladesh earned through export of textile and textile-related items Taka 583.6 billion out of a total export earning of Taka 832 billion.
Product adaptation is another vital issue that a company must comply with, to get greater market share. There are various products Bangladesh can export to different countries, but it should meet criteria. Bangladeshi companies can accordingly adapt their products because foreign consumers want it. Companies must modify their products in the light of the export markets. In the wake of global recession, Bangladesh's garments industry might need to modify its products to lower the prices.
Export diversification means producing newer items and exporting to more countries.
Bangladesh does not export much to neighbouring countries, but it imports much more from India and China. It is absolutely necessary for Bangladesh to explore markets in these countries. Bangladesh cannot sit idle. It should look for competitive advantage.
Export diversification requires extensive research on foreign markets. Bangladesh needs to provide a product or service to foreign customers according to their needs to increase sales.
Bangladesh needs to find out new trading partners. Various studies suggest that growth of exports is attributable to securing of new trading partners.
.......................................................
The writer, an MBA Student and Graduate Assistant Ashland University, can be reached at: E-mail: [email protected]