Assess the impact of international business on social and economic conditions in bangladesh - Research Paper Example

number Wage and international business A wage is a form remuneration extended to an employee by an employer on a given task. The remuneration can be on the basis of the work done or the number of hours the employee as performed a given task. In Bangladesh, both methods are used to remunerate the employees. Recently they have been discussion over the minimum wage an employer should remunerate his/her employees. Bangladesh is well known for her export in garments which is the leading foreign currency earner.

However, the individuals involved in the production process get mere peanuts which had impacted on their living standards. Workers were forced to go to the streets to fight for their rights which they thought were being infringed. The government formed wage board with the help of international labor organization stepped in to assist in the crisis.December last year the wage board approved a 77% increment in wage in the garment industry though most factory owners opposed it they had to oblige.

As much as their right was granted, another problem arose. According to (Lazear, 15) the increase in minimum pay pushed the production cost since labor is the most valuable asset in production. On a business perspective, this was tragedy especially international trade. Price and quality of a product are correlated in international market and therefore, sound decision should be made before implementation. The increased minimum wage paved way for China, India, Turkey and Indonesia to surpass Bangladesh in the exportation of garment.

According to (AP Worldstream, 7) This was attributed to the increase in the price of her garment which was expensive as compared to her competitors. This will impact on Bangladesh since she will experience unfavorable balance of payment i.e. high value of import as compared to export.Wealth distribution and international business Bangladesh being a developing country faces the problem of inequality in wealth distribution. In Bangladesh, the social class differs on extreme scenario such that we have those who are extreme poor and those who are “stinking” rich.

People living around urban areas like Dhaka enjoy a quality life as those who live in the rural area. However, this doesn’t mean that all Dhaka inhabitants enjoy lucrative lifestyle, also in Dhaka there are shanties (Vietnamese News Agency, 4). In these shanties, the sanitation is compromised though they enjoy some benefits like availability of electricity and water.Inequality in wealth distribution has an impact to business development of a nation. With this widening gap between the rich and the poor in Bangladesh, it limits the number of citizens who can engage in international business.

This is because only the wealthiest citizen can engage in international business and they make a small fraction of Bangladesh population. If this is the case then Bangladesh will enjoy minimal benefits accrued with international business. According to (Bodie, Zvi, & Kane, 34) International market is a platform for countries in the world harness wealth so it is therefore advisable for the developing nations like Bangladesh to make a calculative decision in participating in international business.

References "Bangladesh Garment Workers Reject New Wage Rates." AP Worldstream 30 July 2010. Web. 24 Nov. 2014. .Bodie, Zvi, and Alex Kane. Investments. 9th ed. New York: McGraw-Hill/Irwin, 2011. "Garment Exporters Face Downturn." Vietnamese News Agency 25 July 2012. Web. 24 Nov. Lazear, Edward P. The Structure of Wages an International Comparison. Chicago: U of Chicago, 2008.