Doing Business in Bangladesh and Sri Lanka : Challenges and Opportunities

This book offers a comprehensive look at the business environment in South Asia, particularly Bangladesh and Sri Lanka. It explores the historical, economic, social and political impacts of trade and commerce in this region to give insight into how it has learned the lessons of failure from the past and is poised to capitalize on them. Bangladesh is considered an Emerging Tiger as one of the fastest-growing economies in South Asia, having witnessed exponential growth in exports. Meanwhile, Sri Lanka is still recovering from its civil war and FDI makes up a very small percentage of its GDP. Nevertheless, it also represents a unique opportunity for investors looking to do business in this growing region. Identifying the key drivers of South Asian economic growth and development, this book is aimed at scholars who seek to learn more about what must be done to take advantage of the opportunities in both countries to move into the future. About This Book Contents About the Authors List of Figures List of Tables 1 Introduction 1.1 Introduction 1.2 The Structure of the Book 1.3 Objective of the Book 1.4 Background 1.5 History of Business in Bangladesh 1.6 History of Business in Sri Lanka 1.6.1 Ethnic Composition 1.7 Why Study Bangladesh 1.8 Why Study Sri Lanka 1.9 Who Will Benefit 1.10 Is There a Future for FDI and Entrepreneurship in Company Development? 1.11 Discussion 1.12 Conclusions References 2 Business Environment 2.1 Introduction 2.1.1 Bangladesh 2.1.2 Sri Lanka 2.2 Background 2.2.1 Bangladesh 2.2.2 Sri Lanka 2.3 Major Trends in Business Activity in Bangladesh and Sri Lanka 2.3.1 Sri Lanka 2.3.2 Sri Lanka’s Trade Activities 2.4 Description of Popular Business Ventures 2.4.1 Franchising-Bangladesh and Sri Lanka 2.4.2 Direct Marketing 2.4.3 Joint Ventures/Licensing 2.5 How Is Globalization Affecting Market Structures and Business Opportunities? 2.5.1 Globalization and Sri Lanka 2.6 Trading Blocs—I.E., European Union, African Union Effect on Business and Marketing 2.7 The Current Doing Business Framework in Bangladesh and Sri Lanka 2.7.1 Sri Lanka 2.8 Discussion 2.9 Conclusion References 3 Historical Perspective on Doing Business in Bangladesh 3.1 Introduction 3.2 Background 3.2.1 The Opportunities of Doing Business in Bangladesh 3.3 Import Substitution vs Domestic Economic Liberalization vs Export-Led Growth 3.4 Debt Issues 3.5 Infrastructure 3.6 Specific Industries That Have Thrived or Failed 3.7 Discussion 3.8 Conclusion References 4 Historical Perspective on Doing Business in Sri Lanka 4.1 Introduction 4.2 Background 4.3 Import Substitution vs. Domestic Economic Liberalization vs. Export-Led Growth 4.4 Debt Issues 4.5 Infrastructure 4.6 Specific Industries That Have Thrived or Failed 4.7 Discussion 4.8 Conclusion References 5 Cultural Issues Affecting Business Activity in Bangladesh 5.1 Introduction 5.2 Background 5.3 National Culture and Subcultures 5.4 Social Structures 5.5 Religion 5.6 Personal Communication 5.7 Values and Attitudes 5.8 Education 5.9 Manners and Customs 5.10 Discussion 5.11 Conclusion References 6 Cultural Issues Affecting Business Activity in Sri Lanka 6.1 Introduction 6.2 Background 6.3 National Culture and Subcultures 6.4 Social Structures 6.5 Religion 6.6 Personal Communication 6.7 Values and Attitudes 6.8 Education 6.9 Manners and Customs 6.10 Discussion 6.11 Conclusion References 7 The Political Climate in Bangladesh 7.1 Introduction 7.2 Background 7.2.1 Way Forward 7.3 Regional Political Issues that Affect Business-Transparency Issues 7.4 Political Systems 7.5 Political Risk 7.6 Types of Legal Systems Existing in Bangladesh 7.7 Contracts and Agreements—How Are They Documented? 7.8 Obstacles to Entrepreneurship 7.9 Discussion 7.10 Conclusion References 8 The Political Climate in Sri Lanka 8.1 Introduction 8.2 Background 8.3 Regional Political Issues that Affect Business-Transparency Issues 8.4 Political Systems 8.5 Political Risk 8.6 Types of Legal Systems Existing in Sri Lanka 8.6.1 Courts of Law 8.7 Contracts and Agreements—How Are They Documented? 8.8 Obstacles to Entrepreneurship 8.9 Discussion 8.10 Conclusion References 9 The Economic Climate in Bangladesh 9.1 Introduction 9.2 Background 9.3 Monetary System—Inflation Targeting, Inflation, Financial Liberalization, and FDI Flow Patterns 9.3.1 Inflation and Inflation Targeting 9.3.2 Financial Liberalization 9.3.3 Foreign Direct Investment (FDI) Flow 9.4 The Economic System—Typology of Economic Systems in the Region, Development of Nations, Demographic Trends, Evolving Comparative Advantage, Economic Transitions, and Change, —Informal Economy, Losses in Human Capital, Labor Market Protections and Rigidities 9.4.1 Typology of Economic Systems in the Region 9.4.2 Development of Nations 9.4.3 Demographic Trends 9.4.4 Evolving Comparative Advantage 9.4.5 Economic Transitions and Change 9.4.6 Informal Economy 9.4.7 Losses in Human Capital 9.4.8 Labor Market Protections and Rigidities 9.5 Commercial System—Free Trade Blocs, Bilateral Investment Treaties, Export Processing Zones, Investor-State Dispute Settlements, Future Economic Trends, Investment Incentives, and Natural Resource Nationalization 9.5.1 Free Trade Blocs 9.5.2 Bilateral Investment Treaties 9.5.3 Export Processing Zones (EPZs) 9.5.4 Investor-State Dispute Settlements 9.5.5 Future Economic Trends 9.5.6 Investment Incentives 9.5.7 Natural Resource Nationalization 9.6 Money Market—Short-Term Investment, Role of Central Bank, Interbank Loans Infrastructure, Repurchase Agreements, Regulation on Temporary Imbalance in Liquidity 9.6.1 Short-term Investment 9.6.2 Role of Central Bank 9.6.3 Interbank Loans Infrastructure 9.7 Capital Market—Stock Market Structure, IPOs, Institutional Investors, Monetary Stimulus 9.7.1 Stock Market Structure 9.7.2 Initial Public Offerings (IPOs) 9.7.3 Institutional Investors 9.7.4 Monetary Stimulus and its Impact 9.8 Discussion 9.9 Conclusion References 10 The Economic Climate in Sri Lanka 10.1 Introduction 10.2 Background 10.3 Monetary System—Inflation Targeting, Inflation, Financial Liberalization, and FDI Flow Patterns 10.4 The Economic System—Typology of Economic Systems in the Region, Development of Nations, Demographic Trends, Evolving Comparative Advantage, Economic Transitions, and Change, —Informal Economy, Losses in Human Capital, Labor Market Protections and Rigidities 10.5 Commercial System—Free Trade Blocs, Bilateral Investment Treaties, Export Processing Zones, Investor-State Dispute Settlements, Future Economic Trends, Investment Incentives, and Natural Resource Nationalization 10.6 Money Market—Short-Term Investment, Role of Central Bank, Interbank Loans Infrastructure, Repurchase Agreements, Regulation on Temporary Imbalance in Liquidity 10.7 Capital Market—Stock Market Structure, IPOs, Institutional Investors, Monetary Stimulus 10.8 Discussion 10.9 Conclusion References 11 Establishing Business in Bangladesh 11.1 Introduction 11.2 Background 11.3 Investment in New Venture Business—Financial Issues, Financial Markets 11.3.1 Business Start-Up Financing Alternatives, Exchange Rates, Projecting Cash Flows and Risk Analysis 11.3.1.1 Political Risk 11.3.1.2 Economic Risk 11.3.1.3 Legal Risk 11.3.1.4 Cultural Risk 11.3.1.5 Business Risk 11.3.1.6 Financial Risk 11.4 Financing Alternatives (Including Microfinance) 11.5 Physical Infrastructure and Supply Chain Management Distribution and Focus—Supply Chain Management Issue 11.5.1 Key Supply Chain Management Issues in Bangladesh 11.5.2 Solutions and Recommendations 11.6 Negotiation Patterns and Partners 11.6.1 Key Negotiation Patterns and Strategies 11.7 Corporate Social Responsibilities—Sweatshops, Bribery, Child Labor 11.8 Making a Choice 11.9 Discussion 11.10 Conclusion References 12 Establishing Business in Sri Lanka 12.1 Introduction 12.2 Background 12.3 Recent Business Start-Ups and Investments 12.4 Financing Alternatives (Including Microfinance) 12.5 Physical Infrastructure and Supply Chain Management Distribution and Focus—Supply Chain Management Issue 12.6 Negotiation Patterns and Partners 12.7 Corporate Social Responsibilities—Sweatshops, Bribery, Child Labor 12.8 Making a Choice 12.9 Discussion 12.10 Conclusion References 13 The Marketing Process in Bangladesh and Sri Lanka 13.1 Introduction 13.2 Background 13.3 Where Are the Markets? 13.3.1 Sri Lanka 13.4 Market Research 13.5 Regional Differences 13.6 Other Marketing Information Needed to Do Business 13.6.1 Opportunities 13.6.2 Sri Lanka 13.7 The Marketing Mix—Global Marketing—What Products, Branding, Packaging Is Appropriate and Needed? What Are the Pricing Policies, Promotion and Advertising Approaches, Channels, and Distributions Networks? 13.8 Individual Country Marketing vs. Regional Marketing 13.9 Marketing Strategies That Are Typically Used or Perceived to be Used and Work 13.10 Discussion 13.11 Conclusion References 14 Speculations on Future Trends and Conclusions 14.1 Introduction 14.2 Re-capping 14.3 Implications 14.4 Discussion 14.5 Conclusion References Index