ABSTRACT

The world is now a global village. The last two decades can be considered as golden period of telecommunication and PC technology. With the help of a telephone and a computer people can connect at anytime, anywhere. So, apparently there is no national boundary for a country. At present business organizations are going overseas by doing successful outsourcing. Now-a-days around the world almost all people know the name Coca-Cola which is actually an American company. This has been made possible by successful outsourcing to different countries all over the world. Similarly, other types of company, such as world leading car manufacturer Toyota is manufacturing its tier in Brazil, suspension in Germany, little foot mats in Bangladesh and other parts in other places and assembles car in Japan and finally sell most cars in American market. The reason behind doing this is to get competitive advantage from different countries to minimize its manufacturing cost and get maximum output from each unit sold. So now-a-days outsourcing is a common practice for multinational companies (MNCs) to maximize their profit and wealth. To maintain a sustainable growth and development of an organization, MNCs outsource their business function to an emerging economy or to a developing nation where they can get maximum output for a long period of time. Some of these countries are China, India, Bangladesh, Vietnam, Hong Kong, Taiwan, Philippines etc. Different countries have different expertise and different competitive

advantages. So, different country holds different outsourcing market. For instance China holds the electronics manufacturing and assembling market, India holds software and data processing market and Bangladesh holds garments manufacturing market. The objective of this study is to explain the policies, procedures, competitive advantages and expertise of Bangladesh. Also it will give the answer why investors are choosing Bangladesh as an investment destination.

ACKNOWLEDGEMENTS
First, I want to thank God to give me the ability to complete my MBA. Then I want to give thank to my family especially to my mum and dad. I could not do anything in my life without my family support. My moms well wish and my dads continuous motivation give me power to become a successful person at every critical situation in my life. I want to express my great thanks to all my relatives, friends and well wishers to give me positive motivations to do all good work in my life.

Also I would like to express great thanks to all teachers in my academic life and specially teachers from London School of Commerce. First person I would mention for thanks giving is Dr. Rajendra Kumar, then Mr. Micheal Nito, Mr. Mervin Sookun, Mr. Anand Walser, Mr. Geoff Lancaster and others.

Furthermore, I want to express greatest gratitude to Executive Chairman, Board of Investment (BOI), Bangladesh, executive Chairman, Bangladesh Export Processing Zone Authority (BEPZA) and also other top officials. By help of these people I got an insight into Bangladeshs important strategy and policy to improve its economic situation by attracting foreign investment.

I want to thank my friends, who helped me to right steps in living and learning in London, UK.

But most of all, I would like to express my big thanks and respect to my dissertation supervisor from Middlesex University Mr. Ghalib Fahad, without his help it couldnt have been possible to complete this dissertation in the proper way. ii

Abstract Acknowledgements Contents Research Title Chapter 1: 1.1 1.2 1.3 1.4 1.5 1.6 Chapter 2: 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 Chapter 3: 3.1 3.2 3.3 3.4 3.5

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OVERVIEW OF THE TOPIC Introduction Background of the study Current difficulties of attracting investment Investment background of Bangladesh Aim and objectives of research Organisation of the study 1 1 1 2 3 3

CRITICAL ANALYSIS OF FDI CONCEPT Introduction Foreign Direct Investment What is FDI Governments objectives for FDI Motivations of host governments towards FDI Host governments policies towards FDI Market entry strategies for FDI Advantages of FDI Disadvantages of FDI Challenges faced in order to benefit from FDI Conclusion to FDI concept COUNTRY ANALYSIS: BANGLADESH Introduction Economic background of Bangladesh Investment climate of Bangladesh Investment facilitation and promotion authorities Present economic and other developments iii 31 28 22 22 23 5 5 6 7 7 12 16 18 20 20 21

Motivations of home governments towards FDI 13

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Chapter 4: 4.1 4.2 4.3 4.4 4.5 4.6 4.7

RESEARCH METHODOLOGY Introduction What is marketing research The marketing research process The research design process Qualitative research Quantitative research 32 32 33 35 36 38 40

Choice of research method and its implementation RESEARCH FINDINGS Introduction

Chapter 5: 5.1 5.2 5.3 5.4

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Key role player to attract FDI in Bangladesh Comments of the Bangladeshi key officials Discussion and findings of FDI from other Bangladeshi officials 45

5.4.1 Current policies to attract FDI in Bangladesh 45 5.4.2 Awareness of competitors 5.4.3 Facilities and incentives for the investors 5.4.4 Current problems 5.4.5 Future strategies 5.5 Chapter 6: 6.1 6.2 Conclusion CONCLUSIONS AND RECOMMENDATIONS Global recession and its impact on Bangladeshi economy 65 Recommendation and Conclusion 66 46 48 61 62 64

Appendix 1: Appendix 2: Appendix 3:

QUESTIONNARE ACRONYMS

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LIST OF REFERENCES AND BIBLIOGRAPHY 71

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RESEARCH TITLE