This document is a report analyzing the garment export competition between Bangladesh and China. It contains background information on Bangladesh's garment exports, literature reviewing the importance of foreign trade. The objectives are to determine if rising US income affects garment pricing and if Chinese firms are real competitors. The report analyzes how Bangladesh's offered price, China's price, and US income relate using regression analysis. The results show that China's price is a significant factor affecting Bangladesh's price.

1. ECO 501 : Managerial Economics
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ECO 501 : Managerial
Economics
Regular Assignment
7/23/2013

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REPORT ON
GARMENTS EXPORT
(COMPETITION PRICE BETWEEN BANGLADESH AND CHINA)
Prepared For:
Professor K.M. Jamshed uz Zaman
Course instructor
Managerial Economics (ECO 501)
Prepared By:
Group 3
Summer 2013, MBA Program
STUDENT NAME STUDENT ID SIGNATURE
Md. Kamrul Hasan 13164079
Sayed Mohammad Amin Faysal 13164083
Md. Rajibul Haque 13164096
Rossi Norman Dias 13164082
Muhammad Tanvir Hossain 13164042
Chowdhury Maha Alam 13164016

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School of Business Administration, BRAC University
July 23, 2013
Letter of Transmittal
July 23, 2013
K.M. Jamshed uz Zaman
Course Instructor
Managerial Economics (BUS 501)
Subject: Submission of Report
Dear Sir,
According to your instructions, we have prepared a report on "Garments Export" in Bangladesh for
your kind consideration.
The main purpose of thisreportisto assess whetherthe Chinesefirmisreallyacompetitorand if US
income rises what will be our price to meet the export target.
Sincerely yours,
Muhammad Tanvir Hossain ID : 13164042
Rossi Norman Dias ID : 13164082
Md. Rajibul Haque ID : 13164096
Md. Kamrul Hasan ID : 13164079
Sayed Mohammad Amin Faysal ID : 13164083
Chowdhury Maha Alam ID : 13164016
Group 3, MBA, BRACU

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Executive Summary
A function of international trade whereby goods produced in one country are
shipped to another country for future sale or trade. The sale of such goods adds to
the producing nation's gross output. If used for trade, "exports" are exchanged for
other products or services. "Exports" are one of the oldest forms of economic
transfer, and occur on a large scale between nations that have fewer restrictions on
trade, such as tariffs or subsidies. Most of the largest companies operating in
advanced economies will derive a substantial portion of their annual revenues from
exports to other countries. The ability to "export" goods helps an economy to grow
by selling more overall goods and services. One of the core functions of diplomacy
and foreign policy within governments is to foster economic trade in ways that
benefit both parties involved.

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SAMPLE SURVEY: GARMENTS EXPORT OF BANGLADESH
1.0 INTRODUCTION
1.1 Background:
Bangladesh garments exports were worth $19089.79 million in 2011-2012. As we can see
from 1993 to 2012, Bangladesh exports garments products from just merely 1445.02 to
19089.73 respectively. Two type of garments product Bangladesh is exporting, oven and
knit.
1.2 Literature Review:
Foreign trade plays a vital role in gaining rapid economic development of a country. Since
Bangladesh is a potential developing country, the foreign trade is highly important than any
other sector of economy. But unfortunately, our country is still severely unfavourable in
terms of trade balance.
Every year Bangladesh has to spend a formidable amount of money for importing consumer
goods and materials for consumer goods. But garments industry is closing the gap between
0
5000
10000
15000
20000
25000
Year
Total Garments Export

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import and export goods and services that we are consuming right now. Bangladesh import
industrial raw materials which is positive signal for our economy.
VALUE AND QUANTITY OF TOTAL APPAREL EXPORT
FISCAL YEAR BASIS
(VALUE IN MN. US$ QUANTITY IN MN DOZEN)
YEAR
TOTAL APPAREL EXPORT
IN MN.US$
TOTAL APPAREL EXPORT
IN MN.DZ
WOVEN KNIT TOTAL WOVEN KNIT TOTAL
1992-93 1240.48 204.54 1445.02 36.05 10.66 46.71
1993-94 1291.65 264.14 1555.79 34.35 10.81 45.16
1994-95 1835.09 393.26 2228.35 47.21 15.30 62.51
1995-96 1948.81 598.32 2547.13 48.82 23.18 72.00
1996-97 2237.95 763.30 3001.25 53.45 27.54 80.99
1997-98 2844.43 937.51 3781.94 65.59 32.60 98.19
1998-99 2984.96 1035.02 4019.98 64.79 36.66 101.45
1999-2000 3081.19 1268.22 4349.41 66.63 45.27 111.90
2000-2001 3364.32 1495.51 4859.83 71.48 52.54 124.02
2001-2002 3124.82 1458.93 4583.75 77.05 63.39 140.44
2002-2003 3258.27 1653.82 4912.09 82.83 69.18 152.01
2003-2004 3538.07 2148.02 5686.09 90.48 91.60 182.08
2004-2005 3598.20 2819.47 6417.67 92.26 120.13 212.39
2005-2006 4083.82 3816.98 7900.80 108.82 165.02 273.84
2006-2007 4657.63 4553.60 9211.23 133.08 199.54 332.62
2007-2008 5167.28 5532.52 10699.80 147.43 241.60 389.03
2008-2009 5918.51 6429.26 12347.77 169.59 290.92 460.51
2009-2010 6013.43 6483.29 12496.72 172.80 292.70 465.50
2010-2011 8432.40 9482.06 17914.46 247.28 441.03 688.31
2011-2012 9603.34 9486.39 19089.73 49.94 56.46 106.39
Table 2.1: Value and Quantity of Total Apparel Export of Bangladesh
Source: Export Promotion Bureau Compiled by BGMEA
Table 2.1, shows the total export of Bangladeshi garments products in $million. In recent
years our garments export rises from $10000 million to almost $20000 million.
1.3 Objectives
1.3.1 Broad Objectives
The main objective of this report is to find out the concern reason which is affecting the
price of garments products.

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1.3.2 Specific Objective
The objectives of this report to find out on Export of Bangladeshi garments products, which
include:
 To find out whether the rise of the US income has any effect on pricing on
garments products.
 To find out whether Chinese firms are really a competitor.
1.4 Hypothesis
Identifying the reasons which affect the procedure of export price and therefore can help in
making proposal in this consideration through the result.
1.5 Limitations
All the numbers are imaginary and there might be some round-off errors in the calculation.
2.0 METHODOLOGY
Here we will follow the secondary methodology. We have received data which was given by
our instructor and will follow the rules of regression to find out the result. Regression
analysis is one of the most widely used techniques for analyzing historical or experimental
data. In short, regression lets us determine to what extend a measured result is correlated
to input values. More specifically, a regression analysis is used to find the coefficients, b,
m1, m2... mn that cause a line of the form to best fit a series of data points.
3.0 ANALYSIS
3.1 Analysis 1
Here, let
X variable 01(X1) = Price Bangladesh Offers
X variable 01(X2) = Price China Offers
X variable 01(X3) = US Income

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3.2 Analysis 2
Here, let
X variable 01(X1) = Price Bangladesh Offers
X variable 03(X2) = US Income
4.0 Results
From Analysis 01 we can clearly say that, that price China offers

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Appendices 1

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Appendices 2