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Objective: The purpose of this literature is to provide informative knowledge on the opportunities that are available for foreign direct investment (FDI) in Bangladesh and also providing information on the challenges regarding FDI in the country. In this literature there will be brief notifications on factors that affects FDI and also what are the competitive advantage that are present regarding this issue. Opportunities that are present in this country and the challenges that are met in this aspect, also providing recommendations in regards to what should be done to overcome the challenges. Introductions: Foreign Direct Investment (FDI) is considered as one of the vital ingredient s for overall development process of a developing country like Bangladesh . Industrial development is an important pre- requisite for economic growth of a developing country. Bangladesh is basically a country of agrarian economy. For her economic development, industrial economy is imperative. So Bangladesh is gradually moving from agrarian economy to industrial economy. In the age of globalization, it has become a burning issue to exchange views, ideas, capital and human resources. Government of Bangladesh is trying to create a favourable investment environment through introducing economic policies, incentives for investors, promoting privatization and so on. Therefore, the contribution of FDI is necessary in the enhancement of a countrys economic growth. Factors Affecting FDI: Infrastructure Macroeconomic environment Governance International integration Political stability Human resource Technological infrastructure
Competitive Advantage: Language Social stability Human Resources Natural resources Location Market access GSP facility Cost of business
Recommendation & Conclusion: FDI is viewed as a major stimulus to economic growth in developing countries as it brings prosperity to the recipient countries through technological transfer, increasing volume of exports, enhancing job opportunities and increasing government revenue. Realizing the importance of FDI, Bangladesh offers one of the most liberal regimes for FDI in South Asia and these policies are producing results in terms of increased inward investment. Despite, FDI inflow in the SAARC region particularly in Bangladesh is not satisfactory. Furthermore, the lions share of FDI is being repatriated.