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INTRODUCTION

Bangladesh is a one of the less developed country in the world. The financial market of the country is organized by the different types of the Governmental organizations, Non governmental organizations, Private Banks and different types of Multinational firms and Industries. In the economic sector of this country the Multinational firms are playing a very significant rule. The multinational firms are the key player in the globalize economies. Conventional wisdoms have it that firms with foreign equity tend to be more productive. This could be due to the firm specific tangible assets such as exclusive technology and product designs, or the intangible know-how embodied in foreign equity such as marketing, networking and sourcing. Such assets may be more readily available in big multinational corporations. These types of firms own a significant equity share typically 50 percent or more of another company operating in a foreign country. To create, acquire or expand a foreign subsidy multinational firms undertake foreign direct investment. The total direct capital owned by non- residents constitutes the stock of foreign direct investment in a given country. In this section we would like to show how the foreign direct investment works through multinational firms in Bangladesh. To show this first of all we have to be clear about the concept of the foreign direct investment ( FDI ). The foreign direct investment is an investment in a foreign company where the foreign investor owns at least 10 percent of the ordinary shares, undertaken with the objective of the establishing a lasting interest in the country, a long-term relationship and significant influence on the management of the firm. FDI flows include equity capital, reinvested earnings and the direct investment capital. Through the multinational firms FDI plays an important rule in the financial and economic market. Because of the FDI the investment cost in Bangladesh has become cheaper comparer to the

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