SWOT Analysis of Bangladesh Economy: Foreign Remittance

You might also like

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 5

External factors such as export, import, remittances and foreign aid have always played

important roles to Bangladeshs economy, though the relative importance of various external
factors has changed over time. An optimistic scenario for the 2002s could be that the decade
will usher in a breakthrough from trade orientation to investment driven economy while the
2012s will be a decade of steady growth based on foreign investment, service income and trade.
Foreign Remittance: The remittances from overseas workers have already become a
great source of strength.
In 2008-09 FY Bangladesh has earned 9689.16 million US$ or 66674.87 core Tk. and 2009-10
(till April) 9191.28 million US$ or 63561.18 core Tk. by foreign remittance.
According to World Bank report 2008 Bangladesh placed 12th position on the basis of highest
remittance gainer. In 2009 of estimated basis Bangladesh took placed in 8th position which is
2.55% of whole world remittance. This time Bangladesh take 2nd position on SAARC country,
which is 14.89% on total South Asian remittance.
SWOT analysis of Bangladesh Economy
STRENGTH
1. Agriculture
2. RMG Industry
3. Textile Industry
4. Service Sector
5. Capital Market
6. Foreign Remittances
WEAKNESS

Widespread political and bureaucratic corruption
Economic competition relative to the world

Serious overpopulation
Widespread poverty
Frequent cyclones and floods
Political instability
Poor infrastructure
Insufficient power supplies
Slow implementation of economic reforms
Gas-power and energy sector are not business environment friendly
Leadership crisis in organizations management level.
High illiteracy rate
Opportunities:
with decrease of transportation cost.
of Bangladesh.
market can be found and manpower can be migrated provided they have been
trained as per the requirement of the foreign market.
product.
sector may be declined.
out and foreign direct investment in the share market can be raised.
ss and export lead growth
strategy may help overcome the problem chronic deficit in balance of trade position.
Threats:

worsening of. Still depends of foreign aids and loons.

domestic economy.
al responsibility may further aggravate the
situation of the domestic economy and business environment may be weakened.
top down approach doesnt occur. Upzilla are still neglected to become development centre and
grass root level is depriving form getting benefits.


hance the supply of quality education and good health to the rural people.






Question:

Player B here, row minima-

-2 5 -2 --------->> maximin
Player A -5 3 -5
0 -2 -2
-3 0 -3
1 -4 -4

Here, column maxima- 1 5-
minimax
Solution: The game has no saddle point & hence the game has no strategy solution. The solution
must mix strategy. Now player Bs expected pay-off corresponding to player As strategy is given
below:






Value of y
1
Player Bs expected pay-off
0
1 1
5-7.0 = 5
5-7.1 = -2
0
2 1
3-8.0 = 3
3-8.1 = -5
Player As strategy Player Bs expected pay-off
1 -2y
1
+ 5(1-y
1
) = -2y
1
+5- 5y
1
= 5-7y
1



2 -5y
1
+3 (1-y
1
) = -5y
1
+3-3y
1
= 3-8y
1

3 0.y
1
+{-2(1-y
1
)} = -2+2y
1

4 -3y
1
+0(1-y
1
) =-3y
1

5 1.y
1
+{-4(1-y
1
)} = y
1
-4+4y
1
=-4+5y
1

0
3 1
-2+2.0 =-2
-2+2.1 = 0
0
4 1
-3.0 = 0
-3.1 =-3
0
5 1
-4+5.0 =-4
-4+5.1 =-1


So, now we can write from (1) & (5)..

5-7y
1
= -4+5y
1

=> -7y
1
- 5y
1
= -4 -5
=> -12y
1
= -9
=> y
1
= 9/12
=> y
1
= 3/4

hence, y
2
= 1 y
1

= 1- 3/4
= 1/4


Hence, (y
1
, y
2
) = (3/4, 1/4) .



Now, player A can mix with strategy (1) & (5) in which


x
2
=x
3
= x
4
=0
and x
5
= 1-x
1

Now player As expected pay-off corresponding to player Bs strategies are as follows :

Player Bs strategy Player As expected pay-off
1 -2x
1
+ 1(1-x
1
) = -2x
1
+1-x
1
= 1-3x
1

2 5x
1
+{-4(1-x
1
)} = 5x
1
-4+4x
1
= -4+9x
1



Therefore, we can write.
1-3x
1
= -4+9x
1

=> -3x
1
-9x
1
= -4-1
=> -12x
1
= -5
=> 12x
1
= 5
=> x
1
= 5/12


hence, x
5
= 1 - x
1

= 1 5/12
= 7/12
Hence ( x
1
, x
5
) = (5/12 , 7/12)


So, our strategy solution be------

player A : A
1
A
5

5/12 7/12


player B : B
1
B
2

3/4

And he value of the game be-----
5-7y
1
= 5 -7 (3/4)
= 5 - 21/4
= 20-21 / 4
= -1/4

Answer : A = 1 5
5/12 7/12,

B = 1 2
= 3/4 1/4
G.V = -1/4

You might also like