ECO 501 - Assignment
- 1. ECO 501 : Managerial Economics 1 | P a g e ECO 501 : Managerial Economics Regular Assignment 7/23/2013
- 2. 2 | P a g e REPORT ON GARMENTS EXPORT (COMPETITION PRICE BETWEEN BANGLADESH AND CHINA) Prepared For: Professor K.M. Jamshed uz Zaman Course instructor Managerial Economics (ECO 501) Prepared By: Group 3 Summer 2013, MBA Program STUDENT NAME STUDENT ID SIGNATURE Md. Kamrul Hasan 13164079 Sayed Mohammad Amin Faysal 13164083 Md. Rajibul Haque 13164096 Rossi Norman Dias 13164082 Muhammad Tanvir Hossain 13164042 Chowdhury Maha Alam 13164016
- 3. 3 | P a g e School of Business Administration, BRAC University July 23, 2013 Letter of Transmittal July 23, 2013 K.M. Jamshed uz Zaman Course Instructor Managerial Economics (BUS 501) Subject: Submission of Report Dear Sir, According to your instructions, we have prepared a report on "Garments Export" in Bangladesh for your kind consideration. The main purpose of thisreportisto assess whetherthe Chinesefirmisreallyacompetitorand if US income rises what will be our price to meet the export target. Sincerely yours, Muhammad Tanvir Hossain ID : 13164042 Rossi Norman Dias ID : 13164082 Md. Rajibul Haque ID : 13164096 Md. Kamrul Hasan ID : 13164079 Sayed Mohammad Amin Faysal ID : 13164083 Chowdhury Maha Alam ID : 13164016 Group 3, MBA, BRACU
- 4. 4 | P a g e Executive Summary A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation's gross output. If used for trade, "exports" are exchanged for other products or services. "Exports" are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies. Most of the largest companies operating in advanced economies will derive a substantial portion of their annual revenues from exports to other countries. The ability to "export" goods helps an economy to grow by selling more overall goods and services. One of the core functions of diplomacy and foreign policy within governments is to foster economic trade in ways that benefit both parties involved.
- 5. 5 | P a g e SAMPLE SURVEY: GARMENTS EXPORT OF BANGLADESH 1.0 INTRODUCTION 1.1 Background: Bangladesh garments exports were worth $19089.79 million in 2011-2012. As we can see from 1993 to 2012, Bangladesh exports garments products from just merely 1445.02 to 19089.73 respectively. Two type of garments product Bangladesh is exporting, oven and knit. 1.2 Literature Review: Foreign trade plays a vital role in gaining rapid economic development of a country. Since Bangladesh is a potential developing country, the foreign trade is highly important than any other sector of economy. But unfortunately, our country is still severely unfavourable in terms of trade balance. Every year Bangladesh has to spend a formidable amount of money for importing consumer goods and materials for consumer goods. But garments industry is closing the gap between 0 5000 10000 15000 20000 25000 Year Total Garments Export
- 6. 6 | P a g e import and export goods and services that we are consuming right now. Bangladesh import industrial raw materials which is positive signal for our economy. VALUE AND QUANTITY OF TOTAL APPAREL EXPORT FISCAL YEAR BASIS (VALUE IN MN. US$ QUANTITY IN MN DOZEN) YEAR TOTAL APPAREL EXPORT IN MN.US$ TOTAL APPAREL EXPORT IN MN.DZ WOVEN KNIT TOTAL WOVEN KNIT TOTAL 1992-93 1240.48 204.54 1445.02 36.05 10.66 46.71 1993-94 1291.65 264.14 1555.79 34.35 10.81 45.16 1994-95 1835.09 393.26 2228.35 47.21 15.30 62.51 1995-96 1948.81 598.32 2547.13 48.82 23.18 72.00 1996-97 2237.95 763.30 3001.25 53.45 27.54 80.99 1997-98 2844.43 937.51 3781.94 65.59 32.60 98.19 1998-99 2984.96 1035.02 4019.98 64.79 36.66 101.45 1999-2000 3081.19 1268.22 4349.41 66.63 45.27 111.90 2000-2001 3364.32 1495.51 4859.83 71.48 52.54 124.02 2001-2002 3124.82 1458.93 4583.75 77.05 63.39 140.44 2002-2003 3258.27 1653.82 4912.09 82.83 69.18 152.01 2003-2004 3538.07 2148.02 5686.09 90.48 91.60 182.08 2004-2005 3598.20 2819.47 6417.67 92.26 120.13 212.39 2005-2006 4083.82 3816.98 7900.80 108.82 165.02 273.84 2006-2007 4657.63 4553.60 9211.23 133.08 199.54 332.62 2007-2008 5167.28 5532.52 10699.80 147.43 241.60 389.03 2008-2009 5918.51 6429.26 12347.77 169.59 290.92 460.51 2009-2010 6013.43 6483.29 12496.72 172.80 292.70 465.50 2010-2011 8432.40 9482.06 17914.46 247.28 441.03 688.31 2011-2012 9603.34 9486.39 19089.73 49.94 56.46 106.39 Table 2.1: Value and Quantity of Total Apparel Export of Bangladesh Source: Export Promotion Bureau Compiled by BGMEA Table 2.1, shows the total export of Bangladeshi garments products in $million. In recent years our garments export rises from $10000 million to almost $20000 million. 1.3 Objectives 1.3.1 Broad Objectives The main objective of this report is to find out the concern reason which is affecting the price of garments products.
- 7. 7 | P a g e 1.3.2 Specific Objective The objectives of this report to find out on Export of Bangladeshi garments products, which include: To find out whether the rise of the US income has any effect on pricing on garments products. To find out whether Chinese firms are really a competitor. 1.4 Hypothesis Identifying the reasons which affect the procedure of export price and therefore can help in making proposal in this consideration through the result. 1.5 Limitations All the numbers are imaginary and there might be some round-off errors in the calculation. 2.0 METHODOLOGY Here we will follow the secondary methodology. We have received data which was given by our instructor and will follow the rules of regression to find out the result. Regression analysis is one of the most widely used techniques for analyzing historical or experimental data. In short, regression lets us determine to what extend a measured result is correlated to input values. More specifically, a regression analysis is used to find the coefficients, b, m1, m2... mn that cause a line of the form to best fit a series of data points. 3.0 ANALYSIS 3.1 Analysis 1 Here, let X variable 01(X1) = Price Bangladesh Offers X variable 01(X2) = Price China Offers X variable 01(X3) = US Income
- 8. 8 | P a g e 3.2 Analysis 2 Here, let X variable 01(X1) = Price Bangladesh Offers X variable 03(X2) = US Income 4.0 Results From Analysis 01 we can clearly say that, that price China offers
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- 10. 10 | P a g e Appendices 2