Characteristics of foreign trade of Bangladesh:

As a developing country is always unfavourable that means our import is always

greater than export. The basic characteristics of foreign trade of Bangladesh are as
follows:

Export of raw materials:

Most of the exported products from Bangladesh are raw products or materials which
are used in developed countries to produce finished goods. The raw materials that
Bangladesh export are as follows:

 Raw jute
 Raw leather
 Tea
 Frozen fish

Import of industrial goods:

Bangladesh are importing huge amount of industrial goods abroad. The prices of
industrial goods are too high. The industrial goods that Bangladesh imports are as
follows:

 Machinery
 Steel
 Coal
 Medicine
 Material of cements

Manpower export: One of the major sources of earning of Bangladesh is foreign

remittance. Bangladesh export huge manpower to abroad basically in middle-east
countries like Saudia-Arabia, Kuwait, UAE and so on.

Import of food grains:

Bangladesh have to import huge amount food grains from abroad to meet the
ddemand of huge populations. The food grains like rice, wheat, oil, sugar, dal and
so on are imported to meet the demand.

Unfavourable balance of payment:

Unfavourable balance of payment is one of the most important characteristics of

foreign trade of Bangladesh. In balance of payment the debit side items or amount
is always larger than credit side amounts.
Absence of international monopoly:

In international market none of the Bangladeshi company dominating the world

market. We are always dominated by multinational companies and they are creating
monopoly business in our country.

Inelastic demand of agricultural products:

Another characteristic of foreign trade of Bangladesh is inelastic demand of

agricultural products that whether price changes demand does not changes.

Trade with India:

increase of foreign trade Bangladesh is dependent on India where Bangladesh is

satellite country and India is nuclear country. The two-third imported products of
Bangladesh are imported from India.

Increases the import of luxurious goods:

With the increasing purchasing power, people of Bangladesh increased the purchase
of luxurious goods like personal car, ornaments, diamond, LCD TV, air cooler
and so on.

Dependence on foreign vessels:

Most of the import and export are done through sea route, Bangladesh are
dependent on foreign vessel to import something or export something.

Relationship with SARC:

Bangladesh is founder of south Asian Association Of Regional Co-operation.

Where Bangladesh sign the SAFTA and trading with SARC countries like Pakistan,
Bhutan and Nepal.

Export of RMG:

One of the important characteristics of foreign trade of Bangladesh is export of

readymade garments. It is now the leading industry in export sectors.