MACRO ENVIRONMENT ANALYSIS

(Assignment-1)

Name ID Work
Wahidur Rahman 1603410108894 Introduction and Impacts 1st
half
Masud Ali Chowdhury 1603410109076 2nd half Impacts and
Conclusion

SUBJECT CODE: BUS 305

SECTION: N/A

SEMESTER: 7-th

LECTURER NAME: Ms. Ishrath Sharmin

SUBMISSION DATE: 5-th August 2020

Table of Contents

1. Introduction………………………………………………………………………………1
2. The impact of economic factors on the business industry in Bangladesh………………..3
3. Conclusion………………………………………………………………………………..7

References……………………………………………………………………………………8
1. Introduction: In our Bangladesh there are many industries like Garments,
Chemical ,Cottage, Electronics, Pharmaceutical etc. We decide to choose Garments
Industry and try to introduce it. The Bangladesh economy remains highly dependent on
the Ready-Made-Garments (RMG) industry for manufacturing employment, foreign
reserve, and women empowerment. The industry contributes 11.2% to the gross domestic
product of the country[ CITATION Tex20 \l 1033 ]. More than 4,600 RMG factories
constitute the largest industrial sector in the country and contribute to 36% of
manufacturing employment engaging 4.1 million workers. Quarterly Labor Force Survey
Bangladesh (2015-16). Industrious, disciplined and low-cost women workers are the
backbone of this industry. With 61% women empowerment, the RMG industry has
played a crucial role in women empowerment and gender equity. Center for Policy
Dialogue. 2018. Dialogue on Ongoing Upgradation in RMG Enterprise: Results from a
survey. Dhaka.

2. Impacts: During this pandemic situation of covid-19 the whole world like freezing.
Economy, health etc. all over the sector goes down. But people try to fight against corona
virus. In another country like Bangladesh also try to fight against covid-19. Bangladesh
Garments Industry sectors is not good enough in this pandemic situation. Here we discuss
impact of economic factors to identify those factors in our garments industry Bangladesh
and try to explain.

“Corona (virus) is a global fear now and the global trade and commerce have already
been affected to some extent due to the virus fallout. Bangladesh Planning Minister MA
Mannan on Tuesday said if novel corona virus cannot be contained then it might have
some impact on inflation in the coming months. He said as the country’s manufacturing
sector is dependent on raw material import, there will be price high of these materials if
the supply is hampered due to virus outbreak. “Naturally, the general price level will see
a rise that can’t be controlled[ CITATION UNB20 \l 1033 ]. And then problem occurs in
RMG sectors due to Covid-19. Govt. and BGMEA together also try to solve this matter
and fix it also.

In RMG sector labor also faces problems during this pandemic like payment cut.
Bangladesh govt. give lockdown planning during this pandemic so many garment
industries are off in few times. So the industries pay their workers half. Garment workers
of at least 11 factories in Savar took to the streets on 12 April demanding wages of the
previous month, as some of them had not been paid the previous month’s wages, which
are supposed to be paid by 10th day of the month[ CITATION FAI20 \l 1033 ].

Banks in Bangladesh were struggling with poor performance even before corona virus
spread to the country. Before Covid-19 arrived, Dhaka already faced problems with bad
loans and a banking sector that was not fit for purpose. These troubles were increase by a
recent move by the central bank to cap lending rates at 9%[ CITATION Wil20 \l 1033 ].

Every year RMG sectors try to contribute a little part of National Income but its not
possible during this pandemic year 2020. Bangladesh readymade garments (RMG)
industry has received work order cancellations of nearly 3$ billion[ CITATION MSh20 \l
1033 ]. For this it effect on country’s national income. They said that this is the most
worsen situation they face this year. Bangladesh Govt. earn huge amount of national
income from the RMG sector those was half of the country’s income. When Govt. earn
national income properly then they distribute it properly. So it can be said that
distribution is depend on national income.

RMG sectors pay a certain amount of Taxes every year for the Government. It based on
their income but this pandemic year they request govt. to reduce their tax on behalf of the
perspective situation. Bangladesh Govt. ensure that they try to reduce the taxes from the
RMG sector. With the country and the globe in lockdown for an uncertain period, supply
chain disrupted, and a recession is unavoidable, some tax policy measures need to be
taken on an immediate basis before suspended to long term policy adjustments[ CITATION
Jam20 \l 1033 ].

The country’s capital market can be utilized in fighting the economic downturn caused by
the pandemic. Globally central banks, capital market regulators and stock exchanges are
taking initiatives to support governments in tackling the situation by removing approach,
products, features and services[ CITATION Maz20 \l 1033 ]. Although the financial market
especially the banking sector is battered heavily due to regulated cap of rate of interest of
deposit and advance very before of this pandemic[ CITATION Tap20 \l 1033 ].

Conclusion: In this assignment we try to highlight all the components of economic

factors but we choose those that are most common in our environment. On the other
hand, when we Research this topic we found those information properly. We understand
that all the components not impacts all the industries, sometime it differs. Whole our
work we understand that this virus cause all the sights of our economy. Soon we heard
our country won against this virus. Finally we hope that, one day will come when we
seen that our country’s economy will be normal again.

References:

Bibliography is below
Bibliography
Textile Focus. (2020). Textile Focus. Retrieved from texttilefocus.com: http://textilefocus.com/review-
outlook-2020-bangladesh-garments-textile-industry/

UNB NEWS. (2020). Coronavirus might have some impact on inflation: Minister. UNB .

FAIR WEAR. (2020). FAIR WEAR . Retrieved from fairwear.org: https://www.fairwear.org/covid-19-

dossier/worker-engagement-and-monitoring/country-specific-guidence/bangladesh/

Pesek, W. (2020). ASIAMONEY. Retrieved from euromoney.com:

https://www.euromoney.com/article/b1m2l2jp2q958m/bangladesh-banking-covid-overwhelms-dhakas-
weak-system

Bhuiyan, M. S. (2020). Covid-19 and its impact on Bangladesh economy. THE BUSINESS STANDARD .

Chowdhury, J. A. (2020). Tax policy response to Covid-19. The Financial Express .

Mazumder, S. R. (2020). How capital market can help in facing corona crisis in Bangladesh. The
Financial Express .

Paul, T. C. (2020). COVID-19 and its impact on Bangladesh economy. The Financial Express .
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