1

Independent University, Bangladesh

Submitted to
Mr. Zaman Sarkar (Lecturer)
School of Business

Submitted by
Sajal karmaker
I D# 0720381
 2

“Low-cost Chinese toothbrushes outshine local competition”

Summary

Although tooth brush is a small and cheap product but it is essential for your daily life.
That’s why people mostly prefer this business and easily they can get benefits. Even
these small and cheap products influence our economy. Chinese tooth Brush Company
started to penetrate our domestic market in 2001. They provide us tooth brush at low
price TK. 8-10 in which Bangladeshi company provide us TK. 20. That’s why they get
huge profits. Because of low cost of China tooth brush we lose our domestic market to
China. Even domestic workers loose their jobs. After all low cost Chinese tooth Brush
Company damages our domestic Industries as well as our economy.

Business Analysis

1. Reduce unemployment rate: The unemployment rate is the key economic indicator.
Because of entering the foreign brush company in our business it reduce unemployment
rate. Many people are engaging this business as wholesaler, retailer, even hooker and
they get benefits. Similarly government also gets benefits when employee pays tax on
their income.

2. Standard of living: Foreign Brush Company provides employment for our nation.
Similarly it add to our standard of living because price remain comparatively low and
people can buy easily amount of service and goods whatever they need and whatever
they money have.
3. Lose comparative advantages: Domestic Industries lose their comparative advantages
as foreign company produce brush more effectively and efficiently. Because they have
their own material and it is 50 percent cheaper then the domestic tooth brush and people
are willing to buy these products. As a result domestic industries lose their comparative
market. Even they lose their stack holders or stockholders.
 3

4. Increase unemployment rate: Bangladesh has five major tooth brush company in
which people are working as different post and position. Because of Chinese tooth
brush price is comparatively low. So people can buy more. That’s why domestic
Countries Company can’t get profit and they can’t continue their business and it
increase unemployment rate.

5. Trade deficit: Day by day domestic brush Industries are stopped but we have demand.
To fill up countries demand we need import but imports exceeds of our exports because
we loses our brush company and it makes trade deficit. On the other hand it makes
unfavorable balance of payment.

NOTE: Source from the daily star (Monday February 11, 2008)