Bangladesh is a sovereign state located in South Asia. Bangladesh’s economic freedom score is 53.9, making its economy the 131st freest in the 2015 Index. Its overall score is 0.2 points lower than last year. Bangladesh is ranked 27th out of 42 countries in the Asia–Pacific region. Bangladesh continues the five-year move toward greater economic freedom that has brought it out of the status of “repressed.” The country has experienced rapid growth, but the fast pace is slowing down. Nonetheless, progress in reform overall has been uneven and deficient. The foundations of economic freedom remain fragile. Corruption and an inefficient judicial system undermine the rule of law. Weak governance and structural problems continue to constrain development. The inefficient regulatory regime is often heavily politicized, and the policies needed to liberalize or sustain open markets have been undercut by considerable government interference in the economy. The underdeveloped financial sector impedes investment and the growth of a more dynamic private sector. Based on the above information, one should not ignore the fact that the Bangladeshi market is a risky market. A foreign company may end up losing capital in the Bangladeshi market. To complete this case assignment, we will use Bangladesh as an example and learning tool to appreciate the complexities of international trade financing. The articles in the case assignment readings list provide us with an opportunity to review the issues and appreciate the concepts and challenges.
Questions Read the information in the background material, look for more information, and then write a report for American companies that may like to start exporting goods to Bangladesh.
To what extent would it be risky for the American companies to finance foreign trade with Bangladesh?
What would the biggest concerns be if American companies finance trade with Bangladesh?