Impact Of International Trade In Bangladesh

735 Words 3 Pages
With this data we can get a good visual and general idea of how international trade is going for Bangladesh. By an almost ridiculous amount, textiles make up most of Bangladesh’s exports. This is somewhat understandable given the country’s situation. Most industry for them is new, textile factories are often less expensive than more complicated factories like ones for cars; making textile factories a suitable starting point for them. Labor is also relatively cheap, giving even more incentive for the textile factories. The rest of their exports are mostly agricultural products that are often made with less advanced technology than those employed by more developed nations. Both the agricultural products and textiles are exported primarily to First world countries like the United States and European Union countries. This makes sense since with comparative advantage. Bangladesh has a high advantage for textiles since most their industry is that and the labor is cheap. The more developed countries however, have a lower advantage for textiles since labor is more expensive and they can spend their efforts on more complicated forms of industry. With this it makes sense by the comparative advantage theory for the developed nations to be importing the Bangladeshi textiles.
Moving to the flip side with imports, aside textiles
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In can be difficult to read due to the amount of data, but from it we can see that Bangladesh is currently and for a long time has run a trade deficit. They are currently exporting about $33.4 billion USD worth of goods and importing $36.9 billion USD worth of goods (OEC). This puts them at a current trade deficit of $3.49 billion USD which while high is only a 9.5% difference. So with that difference and the strong relationships brought by the trade, Bangladesh seems to be complacent with the deficit. Mentioning trade, lets discuss the trade relationship between the U.S. and

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