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ITB 301 Assignment

Course Code: ITB 301

Section: 02

Submitted By:

Md. Ashikur Rahman Sizan (ID: 2016-1-10-233)

Rehana Akter (ID: 2016-1-10-339)

Sadi Mohammad Hridoy (ID: 2017-1-10-145)

Submitted To:

Jashim Uddin, PhD

Associate Professor

Department of Business Administration

East West University

Submission Date: December 10, 2018


Ans to the Question No: 4-1

From 1000 to mid-1880s, China and India were the worlds two biggest economies. On average,
they used to produce 70-80% of world’s total output. China alone generated one-third of the
world’s gross domestic product in 1820. In the time of industrial revolutions, they lost their
position to Britain later to United States. By 1950, emerging economies’ share of global output
had fallen to 40 percent but they are making a comeback now. Emerging economies are on the
way to restore their historic stature as the engine of the Global economy. They are using new
production methods, new equipment, new trade policies, adopting new business practices. Nearly
70 percent of the world growth over the next few years will come from the emerging markets.
So, this revolutionary comeback will impact our lives, our system, our ways of living. Some
impacts of this changes are given below.

1. Increasing Job Opportunity for Wide Range of People:

As a result of comeback of emerging economies such as Bangladesh, here many job opportunities
have been created. The economy is now expanding and that means more investments have been
made, more new farms and industries are established. These new business farms and industries are
offering jobs to the native people. So, people who live here now, have more job opportunity and
as well as job options to go for. People now have the option to choose a job that fits them well but
previously it was not that easy as there were less job vacancy and job sectors.

2. Increase in Income:

Now, total income increases as every individual has enough job opportunity and less numbers of
people is sitting idle. A large portion of our population is earning a good amount of money at
present. As, better jobs offer better salary, each individual can earn more than the previous years.
Now, there are hundreds of business farms and industries. So, everyone can seek for a job that
offers a handsome amount of salary according their work position. These increase in income now
let us live a standard life and also allow us for savings.

3. Increase in Quantity of Demand:

The more standardized our life becomes, the more our demand increases. As we earn more our
demand has increased. The transformations of the economy have allowed us to purchase more

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goods and services. We are not just only demanding the necessary goods, we are demanding goods
to satisfy our personal satisfaction. That is why, day by day more demands have been created and
is still creating.

4. Increased Educational Standards:

With the development of our social and economic structures our educational standards have been
increased. Individuals can bear the cost of good education. This increased educational standard is
giving us opportunities to increase our skill and quality. If we look, in Bangladesh we have now a
great array of universities which provide quality education. It was not possible before, so a good
economic condition has been helping us in building an educated nation.

5. Introduction to New Cultures:

As more multinational farms are coming to our country and offering products and services to us.
We are getting an opportunity to know new cultures. We can experience new goods or services
that were not originated from our country or were familiar before. For example, many companies
sponsor or organize Halloween now, which is totally a western festival.

6. Increasing Life Expectancy:

We can afford better medical care, better food – that are high in nutrition which has increased our
life expectancy. Previously, we could not afford quality foods like now and had low life
expectancy. We can have better medical facilities for treatments. So, mortality rate has decreased.

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Ans to the Question No: 4-2

Revolutions like the comeback of emerging markets do not occur always. It happens once or twice
a millennium. We will talk about the three most important factors which have caused this
comeback of emerging economies.

1. Low Labor Cost:

Low labor cost is a great advantage for any MNEs and this low labor cost had a great impact for
the comeback of developing countries. If we talk about, developing countries such as Bangladesh,
India or Thailand. They all have a common attribute and that is, labor cost in these countries are
very much low than any other developed countries. So, MNEs used this opportunity to lower their
cost by producing goods from these countries. An example would be helpful to understand the
matter. If, we talk about Bangladesh, it is one of the top exporter countries in the readymade
garments sector. The main reason is that, we can sell our products at a very low price because of
our low labor cost. That is why, large number of MNEs come to Bangladesh to buy/make their
desired product. Even, Trump’s campaigning caps were made from Bangladesh. Like this, low
labor cost increases FDI in countries like China, India, Bangladesh; which ultimately played a
huge role in regaining of their lost economy.

2. Usage of Industrial Machineries:

Though, we were introduced to industrialization later than the developed countries. Developing
countries like us had a leverage. By the time, we started using industrial machineries, we had the
knowledge of the market demand. So, when we had our own industrial revolution it became easy
for us to regain the market. In Bangladesh, we had the people, materials, resources to produce
cloths, we only lacked the automated machines to increase our productivity. Because of the
introduction to industrial machineries, we have now become a top exporting country in clothing
sectors.

3. Improvement of Political Situation and Trade Policies:

A stable political climate is needed for a stable economic growth. Countries like China, Vietnam,
India lost their supreme position because of their internal political failure, colonial exploitation,
unfair trade agreements, spurred isolationism and xenophobia. Bangladesh, China, India other

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developing countries have now a more stable political situation and new easy trade policies. China
more or less opened itself to the rest of the world, breaking down the collective companies,
encouraging foreign investments, importation of foreign technology and management methods.
Bangladesh’s current GDP rate is 7.86%, which is a lot more than before. The main reason of this
exclusive growth rate is stable political system. As, Bangladesh has a better political situation and
trade policies than before, a greater number of MNE’s come here to make investments or set up
their plants.