Market structure of the following product(i)water supply in Dhaka city(ii)Rice market(iii)Mobile telephone service (iv)Banking services?

 (i)water supply in Dhaka:

 The Dhaka Water and Sewerage Authority (DWASA) currently supplies water to about 70% of the population of the Dhaka City Corporation (DCC) and its suburbs through a distribution network. The four million people living in the 3,000 Dhaka slums also rely on DWASA's piped water, as there is no other reliable source of water available; but public standpipes are always remotely located. DWASA's sewerage network covers only about 1 1 0 km2. Trunk sewers suffered major damage during the 1998 and 2004 floods; as a result, only about 40% of the waste water generated by the existing 50,000 Connections currently reach the waste water treatment plant. High standard buildings dispose of their black waters in septic tanks and their grey waters in storm water drains. Lower income households rely DWASA is also responsible for developing and operating the underground storm water drainage system that covers an area of about 140 km2; Dhaka City Corporation is in charge of surface

drains. Natural channels and wetlands that help Dhaka cope with storm water flows are rapidly being destroyed by the urban development. Public health is affected by the limited coverage of both the water supply and waste water facilities and recurrent flooding. DWASA needs to update its water supply master plan to help protect existing sources, develop new ones, and rationalize its distribution network. DWASA also needs to update its sanitation strategy and its wastewater management master plan, as well as its storm water drainage master plan, to ensure that minimum retention capacity of storm water flows is

reserved in the city whose population is expanding at a rate of almost 0.8 million per year.

The Government of Bangladesh has requested assistance from the World Bank to prepare the proposed

project to improve water supply, sewerage disposal, and sanitation and storm water drainage facilities in Dhaka.

(ii) Rice market:

 Rice is very important because about 40% farmers in Bangladesh are producing rice. By which most people in Bangladesh regulate their living condition. Rice is the seed of the monocot plant  Orzo sativa. As acereal grain, it is the most important food for a large part of the world’s human population, especially in East and South Asia, the Middle East, Latin America, and the West Indies. It is the grain with the second-highest worldwide production. Rice production increases must be achieved at a faster rate than in most other countries, while the land planted to rice is not expanding. But in our country there is some major factor which is affect on production of rice price. There are some causes which are affecting on our production of rice Such as 1.All kinds of natural disaster. Rice price is high because we are not self-sufficient in producing rice and we import rice from many countries. On the other hand we are some facing some problem on production process such down technology corruption , syndicate , middle man .lack of improve technology ,lack of capital , hybrid and lack of supply and inputs. Mostly consumers and producer are affected.

(iii) Mobile phone services:

 There is a wide choice of mobile telephone services. You can choose different types of services; including pre-pay or contract services. There are also different pricing options and additional services to opt for, as well as different makes, models and types of mobile phone handsets to choose from.

Before you buy, you should carefully examine what each mobile phone services offers to determine what's best for you and your budget.

(iv) Banking services:

 Banking service in Bangladesh is characterized as a highly competitive and highly regulated sector. With a good number of banks already in operation and a few more in the pipeline, the market is becoming increasingly competitive by the day.With the global slowdown in the face of rising competition, the commercial banks are constantly looking for ways to develop their market and product offers to remain ahead of others. A significant amount of regulation by Bangladesh Bank prevents the scope of introducing newer products into the market and thereby restricts a banks’ ability to outperform others with a diversified product range.

 However, recent trends have shown banks shifting away from vanilla products (basic products) towards higher value added products that are highly structured, to meet the needs of the clients.

 Involvement of the banking sector in different financial events is increasing day by day. At the same time the banking process is becoming faster, easier and the banking arena is becoming wider. As the demand for better service increases, the banking organizations are coming with innovative ideas. In order to survive in the competitive field of the banking sector, all banking organizations are looking for better service opportunities to provide to their clients.

Distinguishing features of market structure (1) perfect competition, monopoly, monopolistic competition and oligopoly?

 

What ways Bangladesh could attract more FDI in the country

 Some of the recent major measures undertaken by the government to attract FDI are:

 a) Private Export processing Zone Act has been enacted. Korea has set up a private EPZ at Chittagong.

b) A Regulatory Reform Commission (RRC) has been set up.

c) A permanent Law Reform Commission has been set up to ensure greater transparency and predictability in the way rules and regulations work.

d) An Administrative Reform Commission has been set up

e) The company law 1913 has been updated and revised in 1994.

f) The Industrial relations Act has been enacted to enhance labor market efficiency. g) Power generation in the private sector has been allowed.

h) Telecommunication in the private sector has been allowed. Foreign Direct Investment in Bangladesh 107

 i) Multiple entry visas to visiting foreign investors are being given by all the Bangladesh

Missions abroad.

j) Provision made for allowing import of standby generators free of tax and sale of excess electricity to nearby industrial units without permission from any agency provided own distribution line is used.

k) Licenses issued to six cellular telecom phone operators, which illustrate governments Commitment to a competitive and market economy.

l) Establishment of Bangladesh Better Business Forum (BBBF)

 

On the other hand, some of the incentives allowed for attracting FDI in Bangladesh are:

 i) No ceiling on investment

ii) 100% foreign equity participation allowed iii) Tax holiday up to 10 years

iv) Allowances of accelerated depreciation in lieu of tax holiday

v) Tax exemption and duty free importation of capital machinery and spare parts for

100% export oriented industries

vi) Residency permits for foreign nationals

vii) No restriction on issuing work permit to a foreign national viii) Capital, profit and dividend repatriation facilities

ix) Term loans and working capital loans from local banks

x) Avoidance of double taxation on the basis of bilateral agreement

xi) Tax exemption on the interest of payable to foreign loans and on royalties and technical know how fees

xii) Open exchange control

xiii) Multiple entry visas for investors

xiv) Convertibility of Taka for current account transactions

xv) Protection of foreign investment through ‘The Foreign Private Investment Act-1980’ and Settlement of Investment Dispute (ICSID), The Multilateral Investment Guarantee (MIGA), and World Intellectual Property Organization (WIPO).

xvi) Adequate protection is available for intellectual property rights such as patents, designs, trademarks and copyrights.

How does Foreign Direct Investment (FDI) help accelerates a country’s economic development

One of the advantages of foreign direct investment is that it helps in the economic development of the particular country where the investment is being made.

 

This is especially applicable for the economically developing countries. During the decade of the 90s foreign direct investment was one of the major external sources of  financing for most of the countries that were growing from an economic perspective. It has also been observed that foreign direct investment has helped several countries when they have faced economic hardships.

 

An example of this could be seen in some countries of the East Asian region. It was observed during the financial problems of 1997-98 that the amount of foreign direct investment made in these countries was pretty steady. The other forms of cash inflows in a country like debt flows and portfolio  equity had suffered major setbacks. Similar observations have been made in Latin America in the 1980s and in Mexico in 1994-95.

 

Foreign direct investment also permits the transfer of technologies. This is done basically in the way of provision of capital inputs. The importance of this factor lies in the fact that this transfer of technologies cannot be accomplished by way oftrading of goods and services as well as investment of financial resources. It also assists in the promotion of the competition within the local input market of a country.

The countries that get foreign direct investment from another country can also develop the human capital resources by getting their employees to receive training on the operations of a particular business. The profits that are generated by the foreign direct investments that are made in that country can be used for the purpose of making contributions to the revenues of corporate taxes of the recipient country.

Foreign direct  investment helps in the creation of new jobs in a particular country. It also helps in increasing the salaries of the workers. This enables them to get access to a better lifestyle and more facilities in life. It has normally been observed that foreign direct investment allows for the development of the manufacturing sector of the recipient country.

 

Foreign direct investment can also bring in advanced technology and skill set in a country. There is also some scope for new research activities being undertaken.

Foreign direct investment assists in increasing the income that is generated through revenues realized through  taxation. It also plays a crucial role in the context of rise in the productivity of the host countries. In case of countries that make foreign direct investment in other countries this process has positive impact as well. In case of these countries, their companies get an opportunity to explore newer markets and thereby generate more income and profits.