Reviving Exports

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Avatar for Ivy1004
3 years ago

Growth of an economy is directly related to export. If export increases at a faster pace as compare to imports, nothing can stop an economy from being developed one. Export is a potential weapon of developing the Bangladesh’s economy. Bangladesh's major export item is readymade-garments and others include shrimps, jute, leather goods and tea. Bangladesh's export sector has suffered a lot during this crisis of the Covid-19. According to the data released by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on April 9, 1,123 factories reported that orders for 967.01 million pieces of clothes worth $3.11 billion export were either cancelled. This points in the direction of a major loss to our economy. To keep our economy afloat, we need to revive our exports after this crisis time of Covid-19. In order to revive the export sector, emphasis has to be laid on various issues. Such as

1.Absolute Advantage Theory: Absolute advantage theory refers to the ability of a country to produce a good more efficiently than other countries. In other words, a country that has an absolute advantage can produce a good with lower marginal cost (fewer materials, cheaper materials, in less time, with fewer workers, with cheaper workers, etc.). Since we have to produce more goods with less money and time, this theory would play an important role after the period of covid-19.

2. Diversification of export products: Diversification of export products will reduce dependence on a product. As a result, export income and employment will increase. According to a report, 1600 types of products are exported from Bangladesh. 85% of total export earnings come from 292 types of readymade garments.Only 15 percent of the revenue comes from the remaining 1300 products. These 1300 products include leather and leather products, plastic products, light engineering products and medicines. The demand for these products is increasing day by day in the world market. So we need to diversify our products without just relying on the garment industry.

3. To Export Service: In addition to products we need to export service. The price of goods fluctuates a lot for different policies of the exporting country. But in the service sector, the chances are very low. The minimum monthly wage for a Thai worker is US 300 dollars. On the other hand, the monthly wage of our country's workers is 70 US dollars. By exporting service, we can earn foreign exchange. The prices of export products are declining in the world market due to Covid19. So, we need to increase the number of export products as well as export service. In this way, we can revive our exports.

4. Political Stability : Due to political instability, sometimes goods cannot be exported to foreign countries. Resulting in loss of export earnings.We need to increase exports by bringing political stability after the period of Covid-19 so that we can Inspirit our exports.

5.Skilled Manpower Employment: It is possible to increase production by employing skilled manpower. We can rescue our export sector by speeding up production through trained workersafter this crisis situation.

6.By Reducing Corruption and Terrorism : Terrorism and corruption are the biggest obstacles to our country's development. Many countries in the world do not want to establish import-export relations with Bangladesh due to terrorism and corruption. So, we need to reduce corruption and terrorism for riving exports after the Covid-19 situation.

7. Improvement of transport and logistics systems: Bangladesh's transport and logistics system is not developed which creates barriers to exports. To meet the needs of its growing economy and boost export growth after the period of Covid-19, Bangladesh needs to improve its transportation and logistics systems.

8• Organizing international fairs: We can arrange international fair after the crisis time of Covid-19 by which we can Increase exports through quality promotion of various products of Bangladesh. In this way, we get a great chance to revive our export products. During this corona period.

Bangladesh's exports have slowed down. So, Bangladesh needs to increase exports by building trade relations with its neighbours and SAARC countries. It is possible to revive exports by producing quality products in less time through skilled workers. For producing products in our country, we should not import raw materials from other countries. Rather, we need to take properinitiative to produce these raw materials in our own country. So that we can save foreign currency.By taking these steps, we will be able to revive our export sector.

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