BUS 685 International Business

Submitted To:
Professor Chowdhury Saima Ferdous
Professor
School of Business and Economics
North South University

Submitted By:
Mohaiminul Islam
ID: 1925397660

Date of Submission:
04.21.2021
 1. Discuss the gradual impact of all of the four industrial revolutions on global trade pattern.

Gradual impact of all of the four industrial revolutions:

In the late 18th century, the Industrial Revolution began in England and spread to other European
countries, the United States, Russia, and Japan. Despite the fact that British entrepreneurs and
government officials prohibited the export of machinery, manufacturing techniques, and skilled
workers, the technologies spread by luring British experts with lucrative offers. Smuggling secrets
into other countries is also a possibility. Industrialization had spread to France, Germany, Belgium,
and the United States by the mid-nineteenth century.

The textile industry in Britain was the first to be transformed by the Industrial Revolution. In 1750,
Britain had already begun exporting wool, linen, and cotton cloth, and cloth merchants' profits
were boosted by hastening the process of spinning and weaving cloth.

Before the late 1700s, India met Britain's cotton demand, but the country's reliance on the
American south grew as Eli Whitney's invention of the cotton gin, a machine that efficiently
separated the cotton fiber from the seed, sped up plantation production.

When the textile industry began to expand at a breakneck pace, logistics for transporting raw
materials to factories and finished goods to customers had to be figured out. The steam engine,
perfected by James Watt in the late 1790s, was a pivotal invention. The railroad engine, which
powered English industry after 1820, was perhaps the most revolutionary use of steam energy.

The economic, military, and political strength of societies that adopted industrialization increased
dramatically. The countries that benefited the most from industrialization were those that had the
necessary elements of land, labor, and capital, as well as government support. Despite the fact that
many other countries attempted to industrialize, only a few were successful.

India, for example, attempted to develop the jute and steel industries, but the entrepreneurs failed
due to a lack of government support and capital.

Many countries in Latin America, Africa, South Asia, and Southeast Asia became overly reliant
on a single cash crop, such as sugar, cotton, or rubber, earning them the moniker "Banana
Republics." Any change in the international market made such economies extremely vulnerable.
The plantations that produced these crops were owned and controlled by foreign investors, who
received the bulk of the profits. People in those areas saw very little of the profits improve their
living conditions, and a market economy could not develop because they had so little money to
spend.

Despite the disparities, the division of labor between people in countries that produced raw
materials and those who produced manufactured goods increased the total volume of global trade.
As a result of the increased volume, better technology was developed, which further bolstered and
nourished the trade.

Travel by sea became much more efficient, with journeys that once took months or years being
cut down to days or weeks. By 1914, two massive canals had cut thousands of miles off sea
journeys. The Suez Canal, built by the British and French in the 1850s, connected the
Mediterranean Sea and the Red Sea, eliminating the need to travel by sea around Africa's tip. The
Panama Canal, which cut a swath through Central America and encouraged trade and
transportation between the Atlantic and Pacific Oceans, did something similar in the western
hemisphere.

2. Discuss the impact of Brexit on the international trade pattern of EU.

The impact of Brexit on the international trade pattern of EU:

Higher barriers to trade, capital flows, and labor mobility will affect output and jobs not only in
the United Kingdom, but also in the remaining 27 EU member states after the United Kingdom
leaves the European Union. Because both parties will be withdrawing from a frictionless economic
relationship as a result of Brexit, there will be costs on both sides.

Motor vehicles and parts (the UK is a large manufacturer that relies on an EU supply chain for
parts), electronics equipment, and processed foods are the sectors across the EU that would be
most affected by the UK's withdrawal. The Ruhr valley's raw material exports would be harmed
as well. The impact would be felt most on eastern European member states who have
approximately 1.2 million workers in the UK by the end of 2015; the largest groups from Poland
(853,000), Romania (175,000) and Lithuania (155,000).
Net annual immigration to the UK fell by 106,000 a year after the Brexit vote, with the majority
of the decrease attributed to EU citizens leaving for other countries, with the largest drop among
those from western European countries.

Until 2017, the European Medicines Agency and the European Banking Authority were both
housed in the United Kingdom. The Council began a process to identify new host cities for EU
agencies because they could not be located outside of the Union. They agreed to relocate to
Amsterdam and Paris in November 2017.

European Companies doing business with British nations will need to change their trade mark,
border, and copyright policies to comply with new British procedures and their associated costs
by the end of the transition period, which is scheduled for January 1, 2021.

Because of Brexit, the backup data center for the Galileo satellite navigation system's security was
also moved from the UK to Spain.

However, Effects of a hard Brexit scenario on regional production costs and the competitive
position of firms are much higher for sectors and regions in the UK than in the EU as a whole.
This is because the UK value chains are far more integrated in the EU economy than vice versa,
whereas for the EU they are on average a smaller mirror image of the UK effects.

A loss in one's competitive position is a gain in another's, and since the UK and its regions face
major competition from the rest of Europe, and the EU is much smaller than the UK, the EU must
face mirrored smaller competitive vulnerabilities and opportunities than the UK.
 3. Analyze the Balance of Trade scenario of Bangladesh from 2010 to 2020. (In doing so,
please explain the export and import situation, the mostly traded goods in export and
import, and the countries with whom Bangladesh is having the major trade agreements).
Please also explain the impact of this status on the economy of Bangladesh.

Balance of Trade scenario of Bangladesh from 2010 to 2020:

To analyze the balance of trade scenario of Bangladesh, first we collect trade data from year 2010
to 2020 and try analyze the data using Microsoft Excel as given below:

Bangladesh Trade Balance - Historical

Data
Year Billions of US $
2020 ($21.84)
2019 ($18.50)
2018 ($23.69)
2017 ($13.06)
2016 ($10.31)
2015 ($14.46)
2014 ($11.30)
2013 ($10.83)
2012 ($10.39)
2011 ($9.75)
2010 ($6.63)

Fig-1: Bangladesh Trade Balance Historical Data (2010-2020)

From the graphical analysis, we can see that, all the trade balances are in negative form and it is
growing negatively with time. Among the years, Bangladesh had the highest trade balance of
-6.63 billion USD in the year of 2010. Again, the lowest amount of trade balance that Bangladesh
had face was -23.69 billion USD in the year of 2018. The average balance of trade is -13.71 billon
USD from year 2010 to 2020.
 The export and import situation: Yearly (2010-2020) export and import data that we have
collected are given below:

Export Import
Year Billions of US $ Billions of US $

2020 $31.65 $53.49

2019 $46.36 $64.86

2018 $40.56 $64.25

2017 $37.55 $50.61

2016 $36.86 $47.17

2015 $33.82 $48.28

2014 $32.83 $44.13

2013 $29.30 $40.14

2012 $26.89 $37.27

2011 $25.63 $35.37

2010 $18.47 $25.11

Fig-2: Export-Import situation (2010-2020)

From the graphical analysis of exported data (Fig-2) we can see that the rate of export has an
increasing pattern from 2010 to 2019 and has dropped a bit in 2020 as there was Covid-19 all over
the world. There is an average export of 32.72 billion UDS from year 2010 to 2020. The highest
exported amount was 46.36 billion USD which occurred in year 2019. Similarly the lowest amount
of export that Bangladesh had made was 18.47 billion USD in the year of 210.

Similarly, the rate of yearly import from 2010 to 2019 also has an increasing pattern. In 2010, the
amount of import was 25.11 billion USD which has gradually increased by year and had a highest
rate of 64.25 billion and 64.86 billion USD in the year of 2018 and 2019 respectively. Again there
is a fall in the pattern in 2020 because of the pandemic.
The mostly traded goods:

Top Imported Product Top Exported product

Refined Petroleum $3.80 Non- Knit Men's suit $7.06

Raw cotton $1.90 Knit T-shirts $6.92

Petroleum Gas $1.42 Knit Sweaters $5.71

Heavy Pure Woven Cotton $1.31 Non Knit Women's suit $5.39

Scrap Iron $1.10 Non Knit Men's Shirt $2.50

Fig-3: Top imported and exported item

From the above analysis we can conclude that, In between year 2010 to 2020, the mostly imported
item of Bangladesh was refined petroleum with an amount of 40% of total imports. Some other
items that has been imported are raw cotton with an amount of 20% petroleum gas with an amount
of 15% and so on.

In case of export product we can see that, Bangladesh has exported mostly garments clothing
around all these years (2010-2020). From the pie chart, the highest amount of exported product is
Non-knit Men’s suit with an amount of 26% of the total export. Some other exported items are T-
shirt, sweaters, women suit and men’s shirt with a percentage of 25%, 21%, 19% and 9%.
The countries with whom Bangladesh is having the major trade agreements:

Top import partners

Top export partners

USA $6.86 China $17.30

Germany $6.69 India $8.24

UK $3.92 Singapore $2.96

Spain $3.41 Malaysia $2.33

France $3.33 Indonesia $1.91

Fig-4: Top exported and imported countries

From the above analysis we can see that In case of export, the top ranked country is USA with an
export amount of 6.86 billion of USD. Which means, Bangladesh yearly exports highest amount
of its product to USA. Germany is in second position on this list with almost equal amount of
export that USA has. Some other countries that import products from Bangladesh are UK, Spain
and France.
In case of importing products, China is in top with an amount of 17.30 billion USD. So we can say
that Bangladesh mostly import its products from China. Although India is in the second position
of this list, the imported amount is much less than the amount of China. Some other imported
countries are Singapore, Malaysia and Indonesia.
Impact of this status on the economy of Bangladesh:
From the above analysis, we can say that Bangladesh is facing a trade deficit since 2010 which
impacts the economy negatively. To become a developed economy, there must be trade surplus or
at least remain in equilibrium point.

Reference:

UpKeep. (n.d.). What Are the 4 Industrial Revolutions? onupkeep.

https://www.onupkeep.com/answers/maintenance-history/four-industrial-revolutions.

Contents. The Geography of Transport Systems. (n.d.).

https://transportgeography.org/contents/chapter1/the-setting-of-global-transportation-
systems/four-industrial-revolutions/.

The 4 Industrial Revolutions. Institute of Entrepreneurship Development. (2020, May 4).

https://ied.eu/project-updates/the-4-industrial-revolutions/.

https://en.wikipedia.org/wiki/Impact_of_Brexit_on_the_European_Union
https://blogs.imf.org/2018/08/10/the-long-term-impact-of-brexit-on-the-european-union/