CAGE Analysis

Marketing in Emerging Economies

Focal country: Bangladesh
Cultural Exchanges

• Cultural exchanges between Bangladesh and Europe are driven by

activities which jointly enrich social and personal development,
and such ties between Europe and Bangladesh are gaining
momentum. Six EU Member States (Germany, France, Italy,
Netherlands, Spain and the UK) undertake regular cultural
activities within Bangladesh.
Denmark and Bangladesh

• Contribute to political stability and promote democracy, respect

for human rights, rule of law and good governance.
• Contribute to rights-based poverty reduction, growth and
sustainable development.
• Increase Danish exports to Bangladesh and promote commercial
cooperation in general.
• Collaborate closely on key global issues, such as counter-
terrorism, peace keeping, climate change and trade policy.)
Spain and Bangladesh

• Gender in Development is the main strategic priority of Spanish

Development Cooperation in Bangladesh.
• Full respect for women’s human rights, and their effective
exercise of political rights, are the objectives of the Spanish
approach. AECID, the Spanish Development Agency, is financing
projects in Bangladesh through NGOs and Multilateral
Organisations.
• One programme, which Spain finances, supports improved
nutrition for women and children, and another supports the fight
against violence on women.
Thailand and Bangladesh

• Bangladesh and Thailand enjoy excellent bilateral relationship

which is deeply rooted in religious, cultural and linguistic linkages
of the two countries.
• Shared commitment to democracy, development and international
peace and security has brought the two countries to work closely
in many areas of mutual interest.
Poor Market Prospect in Thailand

• The industry exemplifies the challenges associated with global

manufacturing: low wages, "flexible" contracts and sweatshop
conditions.
• Informal garment and textile workers often experience isolation,
invisibility and lack of power, especially those who produce from
their homes.
• Westernized culture , trendy skimpy clothes and Thailand earning
a chunk of its GDP through tourism(which is also sometimes
referred to as sex tourism)
Cultural Factors
This dimension describes how every
society has to maintain some links
with its own past while dealing
with the challenges of the present
and future, and societies prioritise
these two existential goals
differently. Normative societies.
which score low on this dimension,
for example, prefer to maintain
time-honoured traditions and norms
while viewing societal change with
suspicion. Those with a culture which
scores high, on the other hand, take
a more pragmatic approach: they
encourage thrift and efforts in
modern education as a way to
prepare for the future.
Bangladesh Top 10 Exports

• Knit or crochet clothing: US$14.3 billion (43.2% of total exports)

• Clothing (not knit or crochet): $13.8 billion (41.5%)
• Other textiles, worn clothing: $1 billion (3%)
• Fish: $657.6 million (1.98%)
• Footwear: $655 million (1.97%)
• Paper yarn, woven fabric: $589.2 million (1.8%)
• Raw hides excluding furskins: $406.4 million (1.2%)
• Headgear: $213.3 million (0.6%)
• Leather, animal gut articles: $141.4 million (0.4%)
• Tobacco: $105.6 million (0.3%)
Denmark- A Promising Market

• Due to continuing in the textile and clothing market as a whole, textile and clothing imports are expected to
increase.
Target • Denmark is good test market for an Asian exporter wishing to do business in North Europe because of the
Market country's small size as well as its low barriers to entry.

• Denmark is the 9th largest importer of outerwear in the EU- 27

Imports

• Per capita expenditure on clothing (762) in Denmark is far above the EU average (585). In apparel, Womens wear
Per Capita is the biggest segment with 55.3% of the total market, followed by menswear 32.6%and Infants wear 12.1%.
Income
Spain- A Promising Market

• Bangladesh's exports to Spain mostly consist of garment, home

textile, jute and jute yarn, jute goods, leather and leather goods,
pharma and shrimp.
• Sea food culture is and particularly the shrimp category is one the
most sought after in Spain which Bangladesh takes leverage of
• The textile manufacturing and textile machine manufacturing is
one of the largest industries in Spain and has assisted in stabilizing
the sometimes challenged economy.
• Spain's largest industry is in the creation of the machinery, and
there are over 160 textile machinery companies in Spain.
Administrative Ties between Bangladesh and
Denmark
• Bangladesh and Denmark enjoy excellent bilateral relations, which is characterised by friendly feelings and
empathy
• Avoidance of Double Taxation Treaty between the Governments of the People’s Republic of Bangladesh and the
Kingdom of Denmark
• Agreement on the Promotion and Reciprocal Protection of Investments between the Government of the People’s
Republic of Bangladesh and The Kingdom of Denmark
• Danish companies are investing in different industrial sectors in Bangladesh such as shipping, textile, light
engineering and also in ICT sectors under DANIDA’s business-to-business promotion programme and through joint-
ventures.
• Bangladesh is listed as the ‘priority’ country in the Danish Government’s priorities for the Danish Development
Cooperation.
• Transfer of Danish experience, technology and knowledge to Bangladesh via ‘State of Green’ Agenda.
• Denmark’s development cooperation with Bangladesh over a 5-year period (2005-2009)
• Bangladesh as one of the main recipients of Danish development assistance since the country gained
independence in 1971
• Conclusion : Strong administrative ties with 2 nations suggest that CAGE distance between two is very less, thus
supporting the Ghemawat’s theory that Bangalesh and Denmark are close export partners.
Administrative Ties between Bangladesh and
Spain
• Spain is among the first European countries to acknowledge the recognition of Bangladesh
• Bangladesh's exports to Spain mostly consist of garment, home textile, jute and jute yarn, jute goods, leather and leather goods,
pharma and shrimp. The government will also offer cash incentives on exports of non-traditional items to encourage export
diversification.
• Countries share common views on many international issues through common platforms like the United Nations (UN) and World Trade
Organization (WTO)
• Bangladesh’s government has offered a Special Economic Zone (SEZ) to Spain, the country’s 4thexport destination, developing 100
SEZs across the country.
• Bangladesh and Spain have agreed to work towards finalizing the bilateral agreements on avoidance of double taxation and cultural
cooperation. In addition, Spain is keen to invest for the development of Bangladesh’s railway sector.
• Spain has provided support in order to strengthen economic and anti-terrorism cooperation to Bangladesh
• Spain is working together with Bangladesh in the United Nations during its term as a non-permanent member of the Security Council.
• Bangladesh has been enjoying GSP facilities in its exports to Spain, the importers of Spain can import Bangladeshi products at zero
rate of duty which can ultimately increase the volume of export from Bangladesh to Spain
• Bangladesh and Spain have agreed to work towards finalizing the bilateral agreements on avoidance of double taxation and cultural
cooperation. In addition, Spain is keen to invest for the development of Bangladesh’s railway sector.
• Conclusion : Administrative ties with 2 nations suggest that CAGE distance between two is less as many of the policies and
measures are yet to be completed and implemented, thus supporting the Ghemawat’s theory that Bangalesh and Spain are good
export partners
Administrative Ties between Bangladesh and
Thailand
• Thailand, as a more developed country, sees many Bengali students coming over to study the sciences
• Establishment of the Joint Commission on Cooperation to further strengthen and promote the close
cooperation between the two countries. Meeting once a year alternately in in Thailand and Bangladesh
where the delegations of both the countries would be led by the respective Ministers of Foreign Affairs.
• Bangladesh and Thailand closely cooperate in different regional forums including BISMTEC, ACD, ARF,
ASEM, OIC and AMED and multilateral forums including UN, WTO and ITU
• The Thai government has given duty concessions to 229 Bangladeshi products
• Bangladesh declared Thailand as a partner country at the Dhaka and Chittagong International Trade Fairs
• Thai companies are also investing US$605 million in Bangladesh through 96 projects, led by top Thai
companies such as CP Group, Ital-Thai and SCG
• Thailand is a champion in agricultural processing while Bangladesh too is famous for its tropical fruits
like mango, jackfruit, lychees and pineapples. There are opportunities for Thai companies to process
dried fruits in Bangladesh, and sell them locally or export, especially given that Bangladesh enjoys 100%
duty-free market access to the EU.
• Agreement to establish direct coastal shipping links between the two countries to quadruple trade.
• Conclusion : Under construction Administrative ties with 2 nations suggest that CAGE distance between
two is more as many of the policies and measures are yet to be framed and planned, thus supporting
the Ghemawat’s theory that Bangalesh and Thailand are yet to become good export partners.