Loknath - 4 Internship Report

Bangabandhu Sheikh Mujibur Rahman Science
and Technology University, Gopalganj-8100
Internship Report
On
Title: A Study on International Business

Activities within Sonali Bank Limited
Supervised By
Taslim Ahammad
Assistant Professor
Department of Management Studies
BSMRSTU, Gopalganj-8100
Submitted by
Loknath Saha
Student Id: 17MGT055
Session: 2017-2018
Course Title: Internship Program
Course Code: MGT488
Department of Management Studies, BSMRSTU
Date of Submission: 06 August, 2023

Acknowledgement
First of all, I would like to thank Almighty God for grace in accomplishing my internship
report on time. I would like to express my gratitude to Almighty God for given me the
strength to perform responsibilities and complete the internship report.
Secondly, I would like to express my heartiest gratitude to my honorable teacher and
internship supervisor, Assistant Professor, Taslim Ahammad. I was enriched by his kind
encouragement and co-operation. I could not complete this internship report successfully
without his responsible guidance, instruction, personal and advice.
Thirdly, I would like to convey my sincere appreciation to the almighty God for giving me
the strength and ability to finish the task within the planned time. I am grateful to Mr.
Mrinmay Roy (Manager) and also grateful to other officer of the Sonali Bank Limited
Tungipara Branch who helped me in preparing the internship report by giving their
suggestions, assistance, and information which is valuable to me. They helped and supported
me to complete the report successfully. I would like to thank my internship supervisor,
Taslim Ahammad, Assistant Professor Department of Management Studies, Bangabandhu
Sheikh Mujibur Rahman Science & Technology University for his valuable suggestions and
guidance during the study period that has greatly inspired me in preparing this report. I want
to express my deep gratitude to my all university friends who have helped me various ways
throughout the time required to prepare this report. I want to give thanks to my family
members who has been the pillar of my strength and strong supporter of my success.
Finally, I am deeply grateful to all concerned persons who provided valuable suggestions
guidance, suggestions and advices in collecting information, analyzing and completing the
report successfully.
Loknath (055) Page 1 of 62

Letter of Submission
06 August, 2023
Taslim Ahammad
Assistant Professor
BSMRSTU, Gopalganj-8100
Subject: Submission of Internship Report.
Dear Sir,
It is a great pleasure and privilege to present the internship report title “A study on
International business Activities within Sonali Bank Limited” which was assigned to me as a
partial requirement for the competition of Bachelor of Business Administration degree.
Throughout the study I have tried with the best of my capacity to accommodate as much
information and relevant issues as possible and tried to follow the instructions as you have
suggested. I tried my best to make this report as much informative as possible.
I am grateful to you for your guidance and kind cooperation at every step of my endeavor on
this report. I shall remain deeply grateful if you kindly take some pen to go through the report
and evaluate my performance.
Sincerely yours
Loknath Saha
ID: 17MGT055
Session: 2017-2018
Department of Management Studies BSMRSTU

Letter of Acceptance
It is my pleasure to accept your work for preparing an Internship report titled “International
Business Activities” I have gone through the whole report. I think the report is highly
informative and relevant. The report seemed original to me. I appreciate you for such good
work.
I wish you every success in life.
With thanks,
Taslim Ahammad
Assistant Professor
Bangabandhu Sheikh Mujibur Rahman Science and Technology University Gopalganj-8100.
Dedicated To,
Our Honorable course instructor Taslim Ahammad inspired me to prepare Internship
Program Report.

Abstract
This study investigates international business activities within Sonali Bank Limited, a
prominent financial institution in Bangladesh. The research explores the bank's global
operations, including international expansion strategies, foreign investments, and trade-
related activities. By evaluating existing policies and practices, the study identifies the bank's
strengths and areas for improvement in managing international business activities. The
research draws insights from qualitative data collected through interviews with key
stakeholders within Sonali Bank Limited, supplemented by a comprehensive review of
relevant literature on international business practices. The findings shed light on the
challenges and opportunities faced by the bank in its global ventures and offer practical
recommendations for enhancing efficiency and effectiveness in international operations. The
study's implications extend to other financial institutions in Bangladesh and beyond, as it
provides valuable insights for organizations seeking to optimize their international business
strategies and navigate the complexities of the global market. The research contributes to the
existing literature on international business and offers valuable practical knowledge for
organizations aiming to excel in the dynamic landscape of global trade and finance.
Keywords: International Business, International Business Management, SBL.
Words: 10995

Table of Contents
Chapter 1 Introduction .........................................................................................................7
1.1 Introduction ................................................................................................................. 7
1.2 About Sonali Bank Limited ......................................................................................... 8
1.3 Background ................................................................................................................. 9
1.4 Origin of the study ....................................................................................................... 9
1.5 Significance ................................................................................................................. 9
1.6 Aims.......................................................................................................................... 10
1.7 Objectives ................................................................................................................. 10
1.10 Research Questions ................................................................................................. 10
Chapter 2 Literature Review .............................................................................................. 12
2.1 Introduction ............................................................................................................... 12
2.2 Definition of International Business ........................................................................... 13
2.3 The Growth of International Business ........................................................................ 15
2.4 Advantages of International Business Management ................................................... 15
2.5 Disadvantages of International Business Management ............................................... 16
2.6 Importance of Technology of Banking. ...................................................................... 17
2.7 Role of Commercial Banks in International Business ................................................. 18
2.8 Methods of Payment in International Trade ............................................................... 21
2.9 The Five Business Models of Banking ....................................................................... 22
2.10 Definition of foreign exchange ................................................................................ 25
2.11 Functions of foreign exchange ................................................................................. 26
2.12 Types of foreign exchange transactions in SBL ....................................................... 27
2.13 There are three kinds of foreign exchange transaction in SBL .................................. 27
2.14 Letter of credit ......................................................................................................... 28
2.15 Parties of letter of credit........................................................................................... 29
2.16 Contents of letter of credit ....................................................................................... 30
2.17 Remittance .............................................................................................................. 31
2.18 Remittance procedures of foreign currency in SBL .................................................. 32
2.19 Why Business go global .......................................................................................... 33
2.20 Conclusion .............................................................................................................. 34
Chapter 3 Methodology ....................................................................................................... 35
3.1 Introduction ............................................................................................................... 35
3.2 Methodology ............................................................................................................. 35
3.3 Research Design ........................................................................................................ 35

3.4 Quantitative ............................................................................................................... 36
3.5 Qualitative ................................................................................................................. 36
3.6 Mixed Method ........................................................................................................... 36
3.7 Data Analysis Method ............................................................................................... 37
3.8 Primary Data ............................................................................................................. 37
3.9 Secondary Data ......................................................................................................... 37
3.10 Observation ............................................................................................................. 37
3.11 Focus Group ............................................................................................................ 38
3.12 Questionnaire .......................................................................................................... 38
3.13 Research Ethics ....................................................................................................... 38
Chapter 4 Findings .............................................................................................................. 39
Introduction..................................................................................................................... 39
Finding-1 ........................................................................................................................ 40
Finding-2 ........................................................................................................................ 40
Finding-3 ........................................................................................................................ 41
Finding-4 ........................................................................................................................ 42
Finding-5 ........................................................................................................................ 43
Finding-6 ........................................................................................................................ 43
Finding-7 ........................................................................................................................ 44
Finding-8 ........................................................................................................................ 45
Finding-9 ........................................................................................................................ 46
Finding-10....................................................................................................................... 47
Conclusion ...................................................................................................................... 47
Chapter 5 Conclusion and Recommendations ................................................................... 49
Limitations .............................................................................................................................. 52
Appendixes .............................................................................................................................. 53
Appendix 1 References .................................................................................................... 53
Appendix 2 Questionnaire ............................................................................................... 55
Appendix 3 Joining Letters .............................................................................................. 59
Appendix 4 Approved by Supervisor ............................................................................... 60
Appendix 5 CV…… ........................................................................................................ 61

Chapter 1 Introduction
1.1 Introduction
Many internationally active banks played a central role in the recent financial crisis. Trading
positions held in different parts of the world facilitated the spillover of financial distress
across borders. In particular, losses on international exposures put significant pressure on
some banks’ capital and access to funding. Meanwhile, difficulties in managing cross-
currency maturity mismatches helped to transmit liquidity strains across countries and
markets. Moreover, country- specific responses to the crisis highlighted, both for
international banks and for regulatory authorities, the challenges of managing cross-border
financial exposures (JEL, 2010).The study of international business involves understanding
the effects that the above activities have on domestic and foreign markets, countries,
governments, companies, and individuals. Successful international businesses recognize the
diversity of the world marketplace and are able to cope with the uncertainties and risks of
doing business in a continually changing global market.Internationalization of organizations
has become much more common in the Fourth Industrial Revolution. Today, enterprises have
more resources and capabilities that allow them to take their business global. While
international business can have many benefits for organizations, economies, and
professionals, it also comes with inherent challenges. Every country has its own government,
culture, languages, policies, laws, currency, and time zones. Managing a business across
multiple countries means managing across all of these different factors. Add to that the
stresses and challenges of the COVID-19 pandemic, and it can be quite intimidating.
(Thunderbird, 2021).

1.2 About Sonali Bank Limited
Sonali Bank, the largest state-owned bank of the country, has experienced its best ever year
in 2022, excelling in all major financial indicators thanks to an increase in performing loans
in small segment businesses. Net Interest Margin (NIM), the difference between interest
expense and earnings, turned positive for the first time in last year. NIM was negative Tk 979
crore in 2021, which turned to positive Tk300 crore in the last year, according to the
bank.The interest income of the bank increased by nearly Tk1,400crores in the last year from
the year before. At the same time, expenditure on deposits declined by Tk500 crore in the last
year from 2021. The bank also made the highest profit of Tk371 crore in 2022, up from
Tk345 crore a year ago. He said Sonali Bank has reduced its non-performing loans (NPLs)
remarkably and improved capital strength. The bank had a meeting with a review team of the
International Monetary Fund (IMF) that visited recently over progress for releasing a second
tranche of $4.7 billion in loans.The significant improvement in NIM was because of the
growth of performing loans, said Md Afzal Karim, managing director of Sonali bank. "The
team expressed satisfaction over the performance of the Sonali bank," said Karim. The rate of
NPLs declined to 14.83% in December last year from 17.32% in the same period of the last
year, according to the bank's annual report.The agreed MoUs between Bangladesh and the
IMF will target a reduction of the average NPL ratios to below 10% for state-owned
commercial banks and below 5% for private commercial banks, while increasing the banks'
capital adequacy ratios and provisioning coverages to the statutory minimum by 2026."We
have set a target to reduce non-performing loans to single digits in the next three years. To
achieve the target, we have introduced a four-tier supervision so that not a single non-
performing loan remains untouched. Every branch manager will supervise the top 25 non-
performing loans," the managing director further said. Sonali Bank experienced significant

loan growth in the last year, helping it to reduce interest expenditure on deposits. Advance
Deposit (AD) ratio increased to 60% in the last year, which had dipped to 47% in 2020.
The top executive also said the bank has a huge amount of deposits, which is a liability for
the bank. So, they will increase the AD ratio gradually through quality loans as they don't
want to keep the funds idle. Performing loans increased mostly in the Cottage, Micro, Small
and Medium Enterprises (CMSME) sector in the last year, Karim said. Deposit size of the
bank stood at Tk1.42 lakh crore in the last year, 5% higher than that in the previous year,
according to the bank's annual report (www.sonalibank.com, 2023).
1.3 Background
The internship program is done for the purpose of learning banking more thoroughly and
applies the learning in the real-life situation of practicing International Business. The project
paper identifies various types of International Business functions and their practical
implementations in Sonali Bank Limited.
1.4 Origin of the study
This report is prepared as a course requirement of BBA program, Bangabandhu Sheikh
Mujibur Rahman Science and Technology University, Gopalganj. In real sense a report is a
bridge between theoretical and practical knowledge. The factors that are the part of writing
this report are:
 Fulfillment of the requirements of BBA program.
 To gain Practical knowledge about banking operation and activities.
 To investigate the similarity and dissimilarity between my theoretical and practical
knowledge
1.5 Significance
Today the need for green human resource management is important for all over the world.
The ecological consciousness of each human drives the living style and environment. The

general employees are interested in green human resource management because of its
important and need in the current workplace. Our personal and professional lifestyle is
affected due to many consequences. The corporate world is the most significant in enhancing
the environment issues and the corporate has to give solution to these hazards.
1.6 Aims
The aims of this study is to comprehensively analyze and understand the international
business activities and provide valuable insights into the bank's global operations, strategies,
challenges, and opportunities, contributing to a better understanding of the bank's
performance in the international area.
1.7 Objectives
 To examine the range of international business activities conducted by Sonali Bank
Limited, including foreign trade, correspondent banking, and cross-border financial
services.
 To evaluate the challenges faced by Sonali Bank in conducting international business
and how these challenges are mitigated.
 To explore the impact of international business activities on Sonali Bank's overall
financial health and its position in the domestic banking sector.
1.10 Research Questions
Research questions are included in below
1. What are the main types of international business activities conducted by Sonali Bank
Limited, and how do they contribute to the bank's overall revenue and profitability?
2. What factors have driven Sonali Bank to engage in international business activities,
and what are the primary objectives behind its global expansion?
3. What are the major challenges faced by Sonali Bank in its international business
endeavors, and how does the bank address these challenges?

4. What is the impact of Sonali Bank's international business activities on its financial
performance and competitiveness within the domestic banking sector?

Chapter 2 Literature Review
2.1 Introduction
A commercial bank is a financial institution offering a variety of services to individuals,
businesses and capital markets. International trade in banking services is commonplace, but
contracts can be challenging to enforce in riskier countries. The role of bank in international
trade is to provide financing products such as letters of credit to help diminish these risks and
allow transactions to go smoothly for buyers and sellers worldwide.
According to Lewis and Davis (1987, p. 219), international banking is a denotation of cross-
border and cross currency facets of banking business. They classify international banking into
two main activities; traditional foreign banking and euro currency banking; where traditional
banking involves transactions with non-residents in domestic currency to allow trade finance
and other international transactions, whilst Euro currency banking involves banks
participating in foreign exchange transactions with both residents and non-residents. As
discussed earlier banks have the major incentive to go global that is from domestic banks to
multi-national banking termed as MNB’s. According to Grubel’s (1977) seminal adaptation
of the theory of MNEs, multi-national banking asserted that potential MNB’s must possess or
at least perceive themselves to be in a possession of some advantage over their least
competitors in foreign markets. According to Grubel’s argument banks would be reluctant to
expand abroad in the absence of some competitive advantage. Banks without a competitive
advantage may obtain an edge through the acquisition of foreign businesses in sophisticated
markets. The general idea of explaining about International Banking is to obtain a basic idea
of international banking and its activities. The banking sector of Bangladesh is adopting
Green to ensure economic sustainability which is imposed by the central bank of Bangladesh
(Ahmad, 2013). As a part of ecommerce, green management practices by banks can ensure
the environmental sustainability by following the 3D approach- De-materialization, De-

carbonization, and De-mobilization in the daily activities of the bank (Hossen and Hossain,
2014). Banks can be greener by initiating new way of its daily activities like- green
investment management, online and paperless deposit management, in-house greening, e-
recruitment and e-training and development, doing social responsibility, and creating
awareness among employees, customers and mass people as a whole (Hoq, 2013).Every bank
should take the initiative to develop the green product with greater involvement of
stakeholders and contribute to green banking practices and environmental sustainability in
today’s banking competition (Choudhury and Saha, 2013).”Bangladesh Bank is carry
forwarding with technology-driven, innovative, environment and low-cost banking approach
to ensure access to financial services for all by 2021 the year of Golden Jubilee of the
independence of Bangladesh” (Hossen and Ashadullah, 2018).
2.2 Definition of International Business
The field requires knowledge and skills above and beyond normal business expertise In
today’s globalized world, there are very few boundaries to free trade and communication.
With the globalization of the world economy, there is a rise in the number of companies that
operate globally. The competition is at its peak, where all companies want to sell their goods
to everyone and everywhere. International business refers to the trade of goods, services,
technology, capital, and/or knowledge across national borders and at a global or trans-
national level. It involves cross-border transactions of goods and services between two or
more countries. (Ahammad T, 2019)
It requires knowledge and skills above and beyond normal business expertise, such as
familiarity with the business regulations of the nations in which the organization operates,
understanding of local customs and laws, and the capability to conduct transactions that may
involve multiple currencies. Hence, “international business management” is the science and
art of getting people together to accomplish desired goals and objectives by coordinating and

integrating all available resources efficiently and effectively For most organizations,
decisions many factors. Cost is an important one because businesses that primarily operate in
developed markets, like the United States and Europe, can often source cheaper labor abroad.
. (Ahammad T, 2019)
International banking comprises cross-border business in any currency and local business in
foreign currencies. It consists of three market segments, which are distinguished principally
by whether a transaction is denominated in a currency that is foreign to the borrower, the
lender or both of them. International business refers to the exchange of goods and services
across national boundaries. It also includes the production and distribution of resources for
profit and transactions that span borders. International business can also be driven by non-
financial goals, such as corporate social responsibility, that have an impact on a nation’s
future (Hossain, 2014)
Source: (Joseph 2017)

2.3 The Growth of International Business
The prevalence of international business has increased significantly during the last part of the
twentieth century, thanks to the liberalization of trade and investment and the development of
technology. Some of the significant elements that have advanced international business
include:
 The formation of the World Trade Organization (WTO) in 1995
 The inception of electronic funds transfers
 The introduction of the euro to the European Union
 Technological innovation that facilitates global communication and transportation
The dissolution of a number of communist markets, thus opening up many economies to
private business. The international business remains a broad concept that encompasses the
smallest companies that may only export or import with one other country, as well as the
largest global firms with integrated operations and strategic alliances around the globe
(International relation sedu, 2023).
 Benefits in an emergency: International business allows you to face emergencies. In
the event of a natural disaster, we can import goods according to your needs.
 Creating Employment Opportunities: International companies promote employment
opportunities in export-oriented markets. It raises the standard of living of countries
dealing with international business.
 Increasing public income: The government imposes import and export taxes on this
transaction. Therefore, the government can make a lot of money from international
business.(John D Daniels 2018)
2.4 Advantages of International Business Management
 Obtaining Valuable Forex: A country can earn valuable Forex by exporting its goods
to other countries.

 Division of labor: International business leads to the specialization of product
production. Therefore, high-quality products that you have the greatest advantage.
 Optimal use of available resources: International businesses reduce the waste of
domestic resources. It helps countries make the best use of their natural resources.
Each country produces those products that have the greatest advantage.
 Improving the standard of living of people: The sale of surplus products from one
country to another leads to increased income and savings for people in the first
country. This will improve the standard of living of the population of the exporting
country.
 Consumer Benefits: Consumers also benefit from international business. They are free
to use a variety of better quality products at a reasonable price. Therefore, consumers
in the importing country have a variety of products, which is an advantage.
2.5 Disadvantages of International Business Management
 Negative economic impact: One country affects the economy of another through
international business. In addition, large-scale exports hinder the industrial
development of importing countries. As a result, the economies of importing countries
are suffering.
 Competition with developed countries: Developing countries cannot compete with
developed countries. Unless an international business is managed, it impedes the
growth and development of developing countries.
 Competition between nations: Fierce competition and the desire to export more
products can create competition between nations. As a result, international peace can
be hampered.
 Colonization: Due to economic and political dependence and industrial recession,
importing countries may be colonized.

 Exploitation: International business leads to exploitation from developing countries to
developed countries. Prosperous and dominant nations regulate the economies of poor
nations.
 Legal Issues: The different laws, regulations, and customs procedures that different
countries follow to have a direct impact on import and export trade.
 Unwanted fashion promotion: Cultural values and heritage are not the same in all
countries. There are many aspects that may not be suitable for our environment,
culture, traditions, etc. This obscenity is often created in the name of cultural
exchange.
2.6 Importance of Technology of Banking.
Over the last decade, digital technology has transformed virtually every industry and service
that touches our lives, including the way we bank. In the past, you had to physically go to
your bank to manage your money and transactions. Now, thanks to the internet and online
banking, that has all changed. Online and mobile banking has revolutionized the way we take
care of our finances. The benefits of technology in banking have changed the whole dynamic
of how people access their financial records and money (Gardner, 2018).
Moving from a manual, scale-constrained environment to a global presence with automated
systems and processes, it is difficult to envisage the adverse scenario where the sector was in
the era before the reforms, when a simple deposit or withdrawal of cash would require a day.
ATMs, mobile banking and online bill payments facilities to vendors and utility service
providers have almost obviated the need for customers to visit a branch. Branches are also
transforming from operating as transaction processing points into relationship management
hubs.
Introduction of computer and other electronic technologies in banks has the following
advantages which state the importance of such new technology in banking:

 Increase in Efficiency: Efficient and quick service to customer can be provided with
the help of modern technologies.
 Handling of Information: Creation of up-to-date monitoring and information system
and strengthening internal control and housekeeping and reporting functions are
provided. Sorting of information becomes easy.
 Cost Reduction: There is reduction in cost including floor space because of the use
of modern technology.
 Accuracy: The clearing of cheese, pass book entries, inter-branch and inter-bank
reconciliation and such other functions can now be carried out quickly, correctly and
legibly with modern technology.
 Customer Service: With internet facility, the customers need not go to the bank
office. All banking transactions and updating of accounts can be done while at home
or in transit. Networking means sharing of information, giving messages and being in
face to face contact even when apart. It is the meeting without moving.
 Easy Communication: Internet connects thousands of computers which can work 24
hours a day throughout the year. There is no more the tyranny of working hours. The
business of banks with customers, head office, other banks, and branches is being
fully computerized in western countries and India has also to move in that direction to
service in international competition.
2.7 Role of Commercial Banks in International Business
Commercial banks facilitate global business by enabling the reliable movement of money.
Commercial banks do not create money--they are simply the intermediaries that move money
from the capital markets to businesses and institutions. Banks get their money through
business checking or deposit accounts, service fees and by issuing certificates of deposit (CD)
and banker's acceptances--money market instruments that are collateralized by letters of

credit (LOC) used in trade finance--and commercial paper. Commercial banks offer services
such as trade finance, project finance, payroll, foreign exchange transactions and trading, lock
boxes for collecting payments and general corporate finance (Mugula, 2016).
Significance
Without commercial banks, the international finance and import-export industry would not
exist. Commercial banks make possible the reliable transfer of funds and translation of
business practices between different countries and different customs all over the world. The
global nature of commercial banking also makes possible the distribution of valuable
economic and business information among customers and the capital markets of all countries.
Commercial banking also serves as a worldwide barometer of economic health and business
trends.
Foreign Branch Banking
Some small commercial banks limit their reach to the local business community; but as
business has gone global, so have commercial banks. Large banks such as Citigroup, Bank of
Africa and Barclays are retail (consumer) banks that also maintain full commercial banking
activities in the
E. Africa with branches in many countries. These larger banks may act as affiliates of smaller
banks that do not have branch presences in other countries. Through foreign branch banking,
E. African based multinational companies can consolidate their financial business at a single
bank that handles their trade finance, currency transactions, project loans, payroll, cash
management investments and deposit accounts throughout the world. Commercial banks also
arrange deals between their customers globally, including strategic partnerships and project
fulfillment agreements.
Trade Finance

Commercial banks doing international business are also called merchant banks because they
finance trade between companies and customers located in different countries. This is done
by issuing LOCs that indicate the customer has deposited the full amount due on an order
with a company located in a different country. The seller company can then feel assured of
being paid if it ships goods to its offshore customer. The LOC may also be used by the
company to guarantee a manufacturer's loan, allowing it to finance the manufacture of the
goods to be delivered. Without LOCs, companies would face considerable expense in
investigating their foreign customers to make sure they are legitimate and creditworthy, and
complying with laws and regulations of the different countries in which they do business.
(Gardner, 2018).
Foreign Exchange
In order to facilitate international trade and development, commercial banks convert and
trade foreign currencies. When a company is doing business in another country it may be paid
in the currency of that country. While some of these revenues will be used to pay workers in
that country and for administrative expense such as office rent, utilities and supplies, the
company may need to purchase goods from a neighboring country in that country's currency,
or convert cash to its native currency for return to the home office.
Corporate Finance
Companies always need to borrow money to cover purchases of raw materials, machinery
parts, inventory and/or payroll. Banks with overseas branches or affiliates can simplify the
process of corporate finance throughout a company's organization by consolidating the
transaction procedures, reporting and record keeping. It is much easier for a company
manager to do business in her own language with a banker located nearby who handles her
global business finance needs than it would be for her to develop banking relationships in
every country where she does business. Her international commercial bank can also provide

referrals to professional service firms in other countries, as well as arrange introductions to
other companies appropriate as customers or for strategic partnerships.
Miscellaneous Banking Services
Corporate checking accounts, currency specific credit cards and lock boxes are also offered
by commercial banking to help make foreign trade possible for a company. Lock boxes are
particularly helpful for collecting payments from overseas customers and reporting receipts
daily for cash management purposes. Currency-specific credit cards are also important in
eliminating the cost of cross currency purchasing, which normally is done at expensive
valuation levels.
2.8 Methods of Payment in International Trade
Payment method plays an important role in international trade. Trade has a risk. The
important part of trade is getting payment on time and properly. Otherwise, there is no value
doing a business. Appropriate payment method helps a business to expand. Besides, it helps a
bank to build a relationship with their client. Moreover, appropriate payment method
minimizes the payment risk. So, every individual business uses their suitable method. There
are basically four payment methods for international transactions (Piya, 2014).
Advance Payment: When importer gives order to the exporter, it has time limit and specific
delivery time or shipment time. If importer pays before the shipment that is called advance
payment. This is less attractive to the importer because it has risk. Importer think
Consignment Payment: Consignment is totally opposite of advance payment. Here,
importer gives payment after the shipment of the product and also when the products have
sold by the foreign delivery to the end customer. Exporter does not want consignment
payment because it has exporter’s high risk. This consignment payment method uses in
developed countries.

Documentary Collections: Documentary collection is very famous payment method. Most
of the country’s businesses follow this payment method
2.9 The Five Business Models of Banking
From a business standpoint, there is no one good way to make money running a bank.
Successful banking is the result of doing a lot of little things right. It is providing good
customer service, bundling your products, having engaging marketing, a solid sales culture,
fantastic underwriting, and profitable client management to name just a few common
endeavors that separate a top performing bank from an average performing bank. When it
comes to business models, banks generally fall into one of five categories, each with their
strength and challenges. Smart banks understand their strength and weaknesses and choose a
model to best amplify their core competencies and the environment. Knowing your model
gives bankers the ability to drive strategic and tactical decisions in order to take full
advantage of their platform. Unfortunately, many banks do not proactively choose a model
and don’t use their model as a basis for strategic decisions. As a result, often times their
actions run counter to their very balance sheet. The classic example is a bank that relies on
driving profit from loans and leverage, yet strives for yield over liquidity in their investment
portfolio.
This is more than just one group’s opinion. Statistically, if you download the data on all
5,400 banks and look at how they make their money, you find that banks generally tend to
cluster around one of five business models (Nichols, 2019).Here is a quick summary and
some characteristics of community banking’s most common models:

Source: (Nichols, C. 2019)
Loans Drive Profits
This is the most popular category for community banks in the U.S. Here, these banks are
characterized by high net interest income and high gross loans to total assets. Margins are
average, but the bank drives profit by having a higher-than-average percentage of customers
to assets and customers to employees. This bank is usually good at gathering deposits
(although not always at the lowest cost) and solid about originating loans. The investment
portfolio is usually kept to a minimum and historically this type of bank has been more asset
sensitive. As a result, this profile usually outperforms in a rising rate environment where loan
growth is present. While credit shocks tend to hit this type of bank hard, the good news is that
earnings are usually stable, thus year to year variability is kept low. (Nichols, C. 2019)
High Leverage
There are a number of banks that drive profit through operating, deposit and capital leverage.
More type of bank usually goes after a niche customer base and gathers a particular stable
asset and then adds leverage. This asset play is often accompanied by high fees such as those
banks specializing in 7(a) SBA production, leasing, medical receivables or similar. This
business model excels in a low rate, low volatility and stable credit environment like the one

that we are in now. While this grouping had some of the widest volatility of earnings, they
tend to be positively skewed, in that they more often than not produce an above-average
performance. (Nichols, C. 2019)
Trading Investment Driven Banks
This group represents the smallest cluster of banks, but the business model here is to marry
cheap deposits with either investment leverage or an asset class that can be booked and sold
either through securitizations or pooled sales. Auto, home equity, utility receivables,
insurance premium financing, leasing, and other similar asset classes are just some of the
ways that community banks execute on this business model. Depending on the leverage and
asset, this model usually excels in a stable or falling rate environment. One notable point
about this business model is that while there are only a handful of banks that have discovered
a true arbitrage opportunity, most of these banks have stellar two-to-three-year periods only
to be met with below average performance when rates or credit moves. These banks had the
largest standard deviation of earnings. (Nichols, C. 2019)
Fee Drives Profits
Of all the business models, this is one of our favorites as it tends to outperform in almost all
markets. Trust, insurance and payment-related banks fall into this category that is
characterized by low leverage, limited credit exposure and fees generated through operational
risk. The downside of this model is that usually there are either high fixed costs or high
barriers to entry, thus scale of either assets or customers are usually important. This business
model usually exhibits the smallest volatility of earnings. (Nichols, C. 2019)
High Margin/Low Leverage
Unlike banks that rely on a diversified loan portfolio to drive profits, these banks usually
choose to specialize in a single loan category such as credit cards, student loans or equipment
financing to drive profits through margin. Banks employing this business model are usually

characterized by higher than the average cost of funds, lower leverage, and higher net interest
margins. Liquidity is usually kept high as a counterbalance to credit and these banks usually
have a developed credit model to allow for both credit and marketing/sales arbitrage. While
these banks usually outperform
In all markets, they particularly excel in middle rate markets that are stable as to credit and
interest rate movement. (Nichols, C. 2019) Of course, most banks are hybrids of the above
and drive profits a number of ways. Further, many banks have a business model that just
doesn’t reveal itself through the statistical clustering of the multiple performance variables
that we looked at. The advantage of having a clear business model is that it allows
management to focus its resources in a particular area and improve over time. It is no surprise
that banks with a discernible business model tend to outperform hybrid banks by a material
margin. If you look at the top 100 banks and remove those banks with one-time asset write-
ups and/or one-time gain on sales, you will find that banks with one of the above business
models make up almost 70% of the banks.(Nichols, C. 2019)
2.10 Definition of foreign exchange
Foreign exchange means foreign currency. Foreign exchange is the rate of exchange in the
both country's currency. Foreign Exchange is a process of converting one nation’s currency
into another and transferring. The term “Foreign Exchange” has three principal meanings:
Firstly, the term foreign exchange refers to the currencies of the other countries in terms of
any single one currency. Bangladeshi taka, dollar, pound sterling etc. are foreign currencies
and as such foreign exchange. Secondly, the term also commonly refers to some instruments
used in international trade, such as bill of exchange, drafts, traveler’s cheques and other
means of international remittance. Thirdly, the term foreign exchange is also quite often
referred to the balance in foreign currencies held by a country. Money from one country to

other countries as more than one currency is involved in foreign trade; it gives rise to
exchange of currencies
Which is known as foreign exchange (Martin D.D. Evans, 2017).
Principles of Foreign Exchange
The following principles are involved in foreign exchange:
 The entire system
 The media
 The monetary unit
2.11 Functions of foreign exchange
The Bank acts as a media for the system of foreign exchange policy. For this reason, the
employee who is related with the Bank to foreign exchange, especially foreign business
should have knowledge of these following functions (Evans 2017)
 Rate of exchange
 How the rate of exchange works
 Forward and spot rate
 Methods of quoting exchange rate
 Premium and discount
 Risk of exchange rate
 Causes of exchange rate
 Exchange control
 Convertibility
 Exchange position
 Intervention money
 Foreign exchange transaction
 Foreign exchange trading

 Export and import letter of credit
 Non-commercial letter of trade
 Financing of foreign trade
2.12 Types of foreign exchange transactions in SBL
The transactions of SBL in foreign exchange involve outward and inward remittance of
foreign exchange from one country to another. SBL makes sales and purchases of equivalent
foreign currencies on spot or forward rate basis. The sale involves exchange of foreign
currency for home currency. The purchase involves exchange of home currency for foreign
currency.
The conversion of foreign currency into home currency takes place at an agreed rate of
exchange which the Banker quotes, one for selling and another for buying, each one
separately for spot transactions and forward transactions (Sam Bankman 2011)
2.13 There are three kinds of foreign exchange transaction in SBL
Imports:
I. Opening of letter of credit
II. Advance bills
III. Bills for collection
IV. Import loans and guarantees
Exports:
I. Pre-shipment advances
II. Purchase of foreign bills
III. Negotiations of foreign bills
IV. Export guarantees
V. Advising/confirming letters
VI. Advance for deferred payments exports

VII. Advance against bills for collection
Remittances:
I. Issue of F.D.D; T.T; P.O etc.
II. Payment of F.D.D; T.T; P.O etc.
III. Issue and enhancement of traveler’s Cheques
IV. Sale and enhancement of foreign currency notes
V. Non-resident accounts
2.14 Letter of credit
A letter of credit is a definite undertaking of the issuing Bank to make payment to the
exporter on behalf of the importer. In other words, L/C is a letter of the issuing Bank to the
beneficiary that undertakes to make payment under some agreed conditions. It is also an
authorization of the issuing bank to another bank to effect payment or to negotiate bill of
exchange, against stipulated documents, complying credit terms
L/C is called a documentary letter of credit because the undertaking of the issuing Bank is
subject to the presentation of some specified documents. The applicant (importer) issues a
L/C in favor of the beneficiary (exporter) by a Bank. The Bank, which opens or issue L/C is
called L/C opening Bank. (Riesenberger J. 2017)
Types of L/C
Letters of Credit are classified into various types according to the method of settlement
employed. All credits must clearly indicate in major categories
 Sight payment credit
 Deferred payment credit
 Acceptance credit
 Negotiation credit
 Red clause credit

 Revolving credit
 Stand-by credit
 Transferable credit
 Back-to-back credit
2.15 Parties of letter of credit
A letter of credit is issued by a Bank at the request of an importer in favor of an exporter from
whom he has contracted to purchases some commodity or commodities. The importer, the
exporter and the issuing Bank are parties to the letter of credit. There are however, one or
more than one Banks that are involved in various capacities and at various stages to play an
important role in the total operation of the credit. (Riesenberger J. 2017)
Opening Bank:
The opening Bank is one that issues the letter of credit at the request of the buyer. By issuing
a letter of credit it takes upon itself the liability to pay the bills drawn under the credit. If the
drafts are negotiated by another Bank, the opening Bank reimburses that Bank.
Advising Bank:
It is the Bank through which the L/C is advised to the exporters. This Bank is actually
situated in exporter's country. It may also assume the role of confirming and /or negotiating
Bank depending upon the condition of the credit.
Buyer and Beneficiary:
The importer at whose request a letter of credit is issued is known as the buyer. The exporter
in whose favor the credit is opened and to whom the letter of credit is addressed is known as
the beneficiary.
Confirming Bank:
It is the Bank, which adds its confirmation to the credit and it is done at the request of issuing
Bank. Confirming Bank may or may not be advising Bank.

Reimbursing Bank:
It is the Bank, which would reimburse the negotiating Bank after getting payment instructions
from issuing Bank.
2.16 Contents of letter of credit
Banks normally issued letter of credit (L/C) on forms which clearly indicate the Banks name
and extent of the Banks obligation under the credit. The contents of the L/C of different
Banks may be different. In general L/C contains the following information: - (Rupnarayan
Bose 2010)
 Name of the buyer
The importer at whose request a letter of credit is issued is known as the buyer.
 Name of the seller
The person who is also known as the beneficiary of the credit.
 Trade terms
Such as F.O.B and CIF
 Tenor of the draft
Maturity period which is normally dependent upon the requirements of the buyer
 Documents required:
That normally include commercial invoice consular or customer’s invoice, insurance
policies as certificates, if the source is to be affected by the beneficiary and original
bills of lading.
 General description of the merchandise:
That briefly and in a general manner duly describes the merchandise covered by a
letter of credit.

2.17 Remittance
Remittance is the act of transmitting money, bills and others as in satisfaction of a demand, or
in discharge of an obligation. SBL is authorized dealer to deal in foreign exchange business.
As an authorized dealer, a Bank must provide some services to the clients regarding foreign
exchange and this department provides these services.
The basic function of this department are outward and inward remittance of foreign exchange
from one country to another country. In this process of providing this remittance service, it
sells and buys foreign currency. The conversion of one currency into another takes place an
agreed rate of exchange which the Banker quotes, one for buying and another for selling. (
RakibulHasan 2014)
Type of Remittance of Foreign Currency:
There are two types of remittance. These are:
Inward Remittance:
Inward remittance covers purchase of foreign currency in the form of Foreign Telegraphic
Transfer (T.T), Demand Draft (DD) and Bills & Travelers Cheque, Export Bill etc. sent from
abroad favoring a beneficiary in Bangladesh. Purchase of Foreign Exchange is to be reported
to Exchange Control Department of Bangladesh Bank from Letter of Credit (L/C). These are
the formal channel of receiving Inward Remittance. A local Bank also receives indenting
commission of local firm also comes under purview of inward remittance.
Mode of Inward Remittance:
 Draft
 Telegraphic Transfer (TT)
 Bills and Travel’s Cheese
 Export proceeds
Outward Remittance:

Outward remittance covers sales of foreign currency by Authorized Dealer (AD) or formal
channel through issuing foreign telegraphic Transfer (T.T), Demand Drafts (D.D), Traveler’s
Cheese Etc. as well as sell of Foreign Exchange under L/C and against Import Bills retired.
The demonstrated utmost caution to ensure that foreign currencies remitted or released by
them are used only for the purpose for which they are released. Most outward remittance is
approved by the authorized dealer on behalf of Bangladesh Bank.
Mode of Outward Remittance:
 Medical treatment
 Education purpose
 Attending seminar etc.
 Balance amount of F.C account
 Profit of foreign companies.
 Technical assistance
 Travel8. L/C
2.18 Remittance procedures of foreign currency in SBL
Usually, remittances are sending or receiving by following two ways;
Formal Channel:
Fund transfer from one country to another country through official channels, i.e. banking
channel, post office, and other private service channels, such as- Western money order, Neon
money order etc. The purposes for moving money abroad through formal channel are
 To invest
 To lend
 To meet trading / Personal obligation
 To safeguard assets against theft or seizure by repressive regimes.
Informal Channel:

Fund transfer from one country to another country through hand or over telephone in an
unofficial channel like as “Hundy”. Haque (1992) comments, that remittance collected by
informal “Hundy” rings operating in Middle East counties and UK are also used to finance
illegal trade and transactions
 Criminals use informal channel for moving money abroad because of-
 Dealing in arms & ammunition
 Drug trafficking
 Financial terrorist activities
 Evasion of exchange regulations/ control
 Evasion of taxation
 Disguise or remove proceeds of threat/ fraud/ bribe
2.19 Why Business go global
First-mover advantage: It refers to getting into a new market and enjoy the advantages of
being first. It is easy to quickly start doing business and get early adopters this way
Opportunity for growth: Potential for growth is a very common reason of internationalization.
Your market may saturate in your home country and therefore you may set out on exploring
new markets 2021/12/dt-pg-1640501790753.jpg Small local markets: Start-ups in Nordic
countries have always looked at internationalization as a major strategy from the very
beginning because their local market is small.
Small local markets:
Start-ups in Nordic countries have always looked at internationalization as a major strategy
from the very beginning because their local market is small
Increase of customers:
If customers are in short supply, it may hit a company’s potential for growth. In such a case,
companies may look for internationalization

Discourage local competitors:
Entering a new market may mean discouraging other players from getting into the same
business-space
Product flexibility:
International businesses having products that don’t really sell well enough in their local or
regional market may find a much better customer base in international markets. Hence, a
business having global presence need not dump the unsold stock of products at deep
discounts in the local market. It can search for some new markets where the products sell at a
higher price. (Ahammad T, 2019)
2.20 Conclusion
The Banking arena in recent time is one of the most competitive business fields in
Bangladesh. A strong banking sector can change the socio-economic structure of our country.
There are 54 banks in Bangladesh in which, Sonali Bank is the largest nationalized
commercial Bank of Bangladesh. This bank performs hundreds of important activities both
for the public and for the government as a whole. It has an outstanding bearing to thrive our
business Its pioneer role in handling foreign trade and foreign exchange transactions ever
before independence of the country remains unchallenged. With wide network of branches at
home and a large number of correspondent banks worldwide, it is singularly handling the
largest volume of export-import business including homebound remittances. The effective
and efficient Foreign Exchange Business of the bank helps in the continuous growth and
progress of national economy sector. It has strong performance on General Banking, Loans &
Advances, Industrial credit and foreign Exchange

Chapter 3 Methodology
3.1 Introduction
The methodology chapter is where I outline the philosophical underpinnings of my research
and outline the specific methodological choices I've made. The point of the methodology
chapter is to tell the reader exactly how I designed my study and, just as importantly, why i
did it this way.
3.2 Methodology
“Methodology is the philosophical framework within which the research is conducted or the
foundation upon which the research is based” (Brown, 2006).
Research methodology is a way of explaining how a researcher intends to carry out their
research. It's a logical, systematic plan to resolve a research problem. A methodology details
a researcher's approach to the research to ensure reliable, valid results that address their aims
and objectives. It encompasses what data they're going to collect and where from, as well as
how it's being collected and analyzed.
3.3 Research Design
In pursuance of the above-mentioned statement of problem and objectives, the following
methodology was adopted for the study. It is a descriptive method based on both primary and
secondary data. The first objective of the study was pursued by the collection and analysis of
data from secondary sources whereas all the other objectives have been achieved by
collection and analysis of primary data. The sources for primary data are collected from the
Google, Sonali Bank Limited practices if International Business are considered to be primary
data and the sources for secondary data is gathered from journals, new letters, Magazines etc
(MugulaJ.2016).

3.4 Quantitative
Quantitative methods are a research approach that involves the collection and analysis of
numerical data to gain insights and understanding about various phenomena. This method
emphasizes objective measurement, statistical analysis, and the use of numerical data to draw
conclusions. In quantitative research, data is typically collected through structured surveys,
experiments, or observations.
3.5 Qualitative
Qualitative methods are a research approach that focuses on capturing and interpreting non-
numerical data to gain an in-depth understanding of human behavior, experiences, and social
phenomena. This method emphasizes subjective interpretations, context, and the exploration
of complex factors that influence individuals and their interactions. In qualitative research,
data is collected through techniques such as interviews, focus groups, observations, and
document analysis. Researchers engage directly with participants, often using open-ended
questions, to gather rich and detailed information about their perspectives, beliefs, and lived
experiences.
3.6 Mixed Method
Mixed methods research is an approach that combines both qualitative and quantitative
methods in a single study. It seeks to integrate the strengths of both approaches to provide a
more comprehensive and robust understanding of a research topic or question. By combining
qualitative and quantitative data collection and analysis techniques, mixed methods research
offers a more complete and nuanced perspective. In mixed methods research, researchers
collect both numerical and non-numerical data to explore different aspects of a phenomenon.

3.7 Data Analysis Method
Data analysis is defined as a process of cleaning, transforming, and modeling data to discover
useful information for business decision-making. The purpose of Data Analysis is to extract
useful information from data and taking the decision based upon the data analysis.(Wiley
2017)
A simple example of Data analysis is whenever we take any decision in our day-to-day life is
by thinking about what happened last time or what will happen by choosing that particular
decision. This is nothing but analyzing our past or future and making decisions based on it.
For that, we Gather memories of our past or dreams of our future. So that is nothing but data
analysis. Now same thing analyst does for business purposes, is called Data Analysis.
3.8 Primary Data
 Practical work experience.
 Face to face conversation with clients.
 Branch Manager and Second officer.
 Face to face conversations with employees and staffs.
3.9 Secondary Data
 Different Text books and Materials.
 Various prescribed forms of International Business were analyzed.
 Website of Sonali Bank Limited.
3.10 Observation
Observation research is a qualitative research technique where researchers observe
participants' ongoing behavior in a natural situation. Depending on the type of observation
research and the goal of the study, the market researcher will have varying levels of
participation in the study. Observation provides the opportunity to monitor or assess a process

or situation and document evidence of what is seen and heard. Seeing actions and behaviors
within a natural context, or as they usually occur provides insights and understanding of the
event, activity or situation being evaluated. (Knight G. 2017)
3.11 Focus Group
A focus group is a research technique used to collect data through group interaction. The
group comprises a small number of carefully selected people who discuss a given topic.
Focus groups are used to identify and explore how people think and behave, and they throw
light on why, what and how questions.( Luke 2020)
3.12 Questionnaire
A questionnaire is a research instrument consisting of a series of questions for the purpose of
gathering information from respondents. Questionnaires can be thought of as a kind of
written interview. They can be carried out face to face, by telephone, computer or post.
Questionnaires provide a relatively cheap, quick, and efficient way of obtaining large
amounts of information from a large sample of people. Questionnaires can be an effective
means of measuring the behavior, attitudes, preferences, opinions, and intentions of relatively
large numbers of subjects more cheaply and quickly than other methods. [Questionnaire
included in Appendices 1]
3.13 Research Ethics
Research ethics involves the application of fundamental ethical principles to research
activities which include the design and implementation of research, respect towards society
and others, the use of resources and research outputs, scientific misconduct and the regulation
of research. (L Gelling 2020)

Chapter 4 Findings
Introduction
The Results (also sometimes called Findings) section in an empirical research paper describes
what the researcher(s) found when they analyzed their data. Its primary purpose is to use the
data collected to answer the research question(s) posed in the introduction, even if the
findings challenge the hypothesis. The Results section should also describe other pertinent
discoveries, trends, or insights revealed by analysis of the raw data (University, 1977).
To paraphrase the APA Publication Manual, researchers should organize findings in a way
that reflects the study design. For example, it makes sense to present the results of an
ethnographic study as a chronological narrative. Qualitative studies that use thematic coding
might break down results by theme or category, whereas quantitative studies might break up
findings by research question or statistical test. In most Results sections (whether the study is
quantitative, qualitative, or mixed-methods), the findings are presented in order of
importance, beginning with the answer to the primary research question(s). In his instructions
for writing journal articles, Daryl Bem writes, “The general rule in reporting your findings is
to give the forest first and then the trees.

Finding-1
Question: International expansion enhances a company's competitive advantage in the global
market.
50
45
40
35
30
25
20 Percentage
15
10
5
0
Agree Strongly Agree Neutral Disagree Strongly
Disagree
Based on the survey responses, 75% of the respondents either agree or strongly agree that
international expansion is beneficial for a company's competitive advantage. This indicates
that a significant majority of participants believe that venturing into international markets can
provide a competitive edge to businesses.
Finding-2
Question: Investing in foreign markets can mitigate risks associated with domestic economic
fluctuations.
Agree Strongly Agree Neutral Disagree
13%
38%
22%
27%

The survey shows that 60% of the participants agree or strongly agree that investing in
foreign markets can help mitigate risks arising from domestic economic fluctuations. This
suggests that a majority of respondents perceive international investments as a risk
diversification strategy.
Finding-3
Question: Adopting a standardized global marketing strategy is more effective than localized
approaches.
Strongly Disagree
Disagree
Neutral
Percentage
Strongly Agree
Agree
0 5 10 15 20 25 30 35
The survey results reveal a diverse opinion on this question, with 43% of respondents being
neutral. However, 43% also express agreement with the statement, indicating that there is a
split in the perception of the effectiveness of standardized global marketing compared to
localized approaches.

Finding-4
Question: Cultural differences significantly impact the success of international business
ventures.
70
60
50
40
30 Percentage
20
10
0
Disgree
The data from the survey indicates that 80% of respondents acknowledge the significant
impact of cultural differences on international business ventures. This suggests that most
participants recognize the importance of cultural sensitivity and adaptation in global business
operations.

Finding-5
Tariff and non-tariff barriers have a substantial influence on international trade flows.
60
50
40
30
Percentage
20
10
0
Disagree
According to the survey, 65% of participants believe that tariff and non-tariff barriers exert a
substantial influence on international trade flows. This indicates that a considerable
proportion of respondents see trade barriers as important factors affecting global trade.
Finding-6
Question: Exchange rate fluctuations can greatly affect international business profitability.
45
40
35
30
25
20
Percentage
15
10
5
0
Disgree

The survey results show that 70% of respondents agree or strongly agree with the statement,
indicating a consensus on the significant impact of exchange rate fluctuations on international
business profitability.
Finding-7
Question: Joint ventures with local partners are a viable strategy for entering new
international markets.
Agree Strongly Agree Neutral Disagree
19%
32%
22%
27%
The survey reveals that 55% of respondents see joint ventures with local partners as a viable
strategy for entering new international markets. This suggests that a majority of participants
view collaboration as an effective approach to expanding globally.

Finding-8
Question: The Letter of Credit (LC) is an essential and secure payment method for
international trade transactions.
60
50
40
30
Percentage
20
10
0
Disagree
The survey results indicate that 50% of respondents agree that the Letter of Credit (LC) is an
essential and secure payment method for international trade transactions. An additional 30%
strongly agree, reflecting a substantial majority that values LC as a reliable payment
instrument for cross-border trade.

Finding-9
Question: Foreign remittance services are crucial for enabling international money transfers
and supporting global financial flows.
70
60
50
40
30 Percentage
20
10
0
Disagree
The survey shows that 60% of respondents agree that foreign remittance services are crucial
for enabling international money transfers and supporting global financial flows. An
additional 25% strongly agree, indicating a strong consensus on the significance of
remittance services in facilitating cross-border transactions.

Finding-10
Question: Foreign exchange services offered by banks play a vital role in managing currency
risks for international businesses.
Agree Strongly Agree Neutral Disagree Strongly Disagree
3%
7%
15%
45%
30%
Based on the survey data, 45% of participants agree that foreign exchange services offered by
banks play a vital role in managing currency risks for international businesses. An additional
30% strongly agree, indicating a considerable number of respondents who recognize the
importance of foreign exchange services in mitigating currency-related risks.
Conclusion
The survey results highlight several key insights into the perceptions and beliefs of
participants regarding various aspects of international business. The findings suggest that a
significant majority of respondents view international expansion as a means to enhance a
company's competitive advantage in the global market, indicating the importance of
venturing into foreign markets to stay competitive. Moreover, a considerable proportion of
participants recognize the potential benefits of investing in foreign markets as a risk
mitigation strategy during domestic economic fluctuations. This indicates a recognition of the

role international diversification can play in reducing business risks. The survey also reveals
a divided opinion on the effectiveness of standardized global marketing versus localized
approaches, with a substantial portion of respondents being neutral. This indicates that further
research and analysis would be necessary to better understand the dynamics of marketing
strategies in international settings. Cultural differences are widely acknowledged as having a
significant impact on the success of international business ventures, underscoring the
importance of cultural sensitivity and adaptability for companies operating globally.
Trade barriers, both tariff and non-tariff, are perceived as substantial influencers on
international trade flows, emphasizing the need for businesses to navigate and adapt to the
complexities of global trade regulations. Participants also agree on the profound influence of
exchange rate fluctuations on international business profitability, highlighting the importance
of managing currency risks in cross-border operations. Collaboration through joint ventures
with local partners is seen as a viable strategy for entering new international markets,
suggesting that forging partnerships can provide companies with valuable market access and
local knowledge. Technology advancements are overwhelmingly perceived as facilitators of
cross-border business transactions and communication, underlining their transformative role
in global business operations. Furthermore, there is a widespread belief that international
business operations positively contribute to the economic growth of the home country,
indicating a recognition of the economic benefits generated by engaging in international
trade. Lastly, a significant majority of respondents support the idea that companies engaged
in international business should prioritize corporate social responsibility, demonstrating a
growing concern for ethical and responsible business practices on a global scale.

Chapter 5 Conclusion and Recommendations
The Banking arena in recent time is one of the most competitive business fields in
Bangladesh. As Bangladesh is a developing country, a strong banking sector can change the
socio-economic structure of the country. So, we can say, the whole economy of the country in
linked up with its banking system. There are 54 banks in Bangladesh in which 38 are
indigenous commercial Banks. Sonali Bank is the largest nationalized commercial Bank of
Bangladesh. This bank performs hundreds of important activities both for the public and for
the government as a whole. It has an outstanding bearing to thrive our business sector. It has
strong performance on General Banking, Loans & Advances, Industrial credit and foreign
Exchange. I had the privilege to learn many things from the Foreign Exchange Corporate
Branch through my active involvement in this branch.
In this paper I have tried to highlight International Business practices of Sonali Bank. Its
pioneer role in handling foreign trade and foreign exchange transactions ever before
independence of the country still remains unchallenged. With wide network of branches at
home and also a large number of correspondent banks worldwide it is singularly handling the
largest volume of export- import business including homebound remittances. The effective
and efficient Foreign Exchange Business of the Bank helps in the continuous growth and
progress of national economy.
Recommendations
Though, Sonali Bank tries to give the best customer support. On the basis of preceding
description and analysis the activities some recommendations are given below which may be
effective for the organization
 They must be proactive in exploring international expansion opportunities:
Companies should actively seek and evaluate potential markets for expansion to gain
a competitive advantage in the global landscape.

 They need to conduct thorough risk assessments before investing in foreign markets:
Prior to making international investments, businesses must assess and understand the
risks associated with different markets to make informed and strategic decisions.
 They must be culturally sensitive and adaptable: Recognizing the significance of
cultural differences, companies must prioritize understanding and respecting the
cultural nuances of the markets they operate in to foster positive relationships with
local stakeholders.
 Foreign Remittance Management Department needs to easier its complex

transaction procedure to provide hassle free service (Smith and Jhonson,
2020).
 They need to stay informed about trade regulations and navigate barriers: As a
substantial influence on international trade flows, businesses must stay abreast of
evolving trade policies, tariffs, and non-tariff barriers, and develop strategies to
overcome trade hurdles.
 Letter of Credit (L/C) opening system for the importer must be easier (Brown,
2021).
 Companies are required to implement robust risk management strategies for exchange
rate fluctuations: Given the consensus on the impact of exchange rate fluctuations on
profitability, businesses must implement effective risk management practices to
mitigate currency-related risks.
 Proper communication system and maintenance of files & machineries

likephone, computer, fax, and photocopier need to be ensured. (Luke, 2015)
 They must be open to collaboration and partnerships: To successfully enter new
international markets, companies should be open to forming joint ventures with local
partners, leveraging their expertise and network to establish a foothold in foreign
markets.

 They need to embrace technological advancements: Acknowledging the role of
technology in facilitating cross-border transactions and communication, businesses
should embrace and leverage technological innovations to streamline global
operations and enhance efficiency.
 They need to establish strong relationships with reputable financial institutions: To
effectively use LCs, companies must establish relationships with reliable banks or
financial institutions that offer LC services, ensuring the credibility and safety of the
payment process.
 They need to leverage digital solutions for seamless remittance transactions:
Embracing digital platforms and technologies can enhance the speed and convenience
of foreign remittance services, facilitating smooth cross-border money transfers.
 They need to evaluate and compare foreign exchange service offerings from various
banks: To make informed decisions, companies should conduct thorough research on
different banks' foreign exchange services, comparing fees, exchange rates, and
additional features to choose the most suitable option.

Limitations
While preparing this report I faced many challenges. The following are some of the
study's constraints that I encountered while reading the report
 I had to rely on the website since Sonali Bank does not have a large and
diverse collection of journals and articles, yet due to security issues, I met
some challenges.
 Every organization has their own secrecy that is not revealed to others.
Employees didn’t disclose much information for the sake of the
confidentiality of the organization.
 Lack of available up-to-date information.
 Faced short of time because It is incredibly challenging to gather all the
necessary information in such a short amount of time.
 As officers always remained busy with their everyday work, they could
provide me little time.
 As this report is carried out for the first time, so experience is one of the
main constrains of the study.

Appendixes
Appendix 1 References
Ahammad,T, what is International Business Management? Dhaka Tribune, April 19 2019

http://www.dhakatribune.com/opinion/2019/04/19/what-is-international- Business-
management
Abrar, T. S. (2014). Migrant Worker Remittances and Micro-Finance in Bangladesh.
Adams, Jr., Richard. (1991). the Effects of International Remittances on Poverty, Inequality,
and Development in Rural
Alam, S. A. (2012). Foreign Remittance Income in Bangladesh: Opportunity, Asian Business
Review
Egypt. Research Report 86. International Food Policy Research Institute, Washington, DC.
Edwards, Alejandra and Manuelita Ureta (2003). “International Migration, Remittances and
Schooling: Evidence from El Salvador.” Journal of Development Economics, 72, 429-
461.
Gitman, L. J. (2016). Principles of Managerial Finance.
Gardner, S. (2018, February 13). Retrieved from www.linkedin.com:
https://www.linkedin.com/pulse/technology-banking-its-benefits-shawn-gardner
Internationalrelationsedu. (2023, April 11). Retrieved from
www.internationalrelationsedu.org: https://www.internationalrelationsedu.org/what-
is-international-business/
JEL. (2010). Committee on the Global Financial System. Basel, Switzerland: www.bis.org.
Khawaza Main Uddin (2007). Remittance rises as more Bangladeshi go abroad for jobs.
Minister. (2012). Ministry of Expatriates’ Welfare and Overseas Employment, (S. Islam
Interviewer). https://www.Sonalibank.org.bd/bd/SBL-at-a-glance/Official website of
BKB: http://www.Sonalibank.org.bd
Mugula, J. (2016, April 5). Retrieved from www.linkedin.com:
https://www.linkedin.com/pulse/role-commercial-banks-international-business-
mugula-joseph
Miah, A.-H. M. (2013). A Handbook of Islamic Banking & Foreign Exchange Operation.
Nichols, C. (2019, January 23). The Five Business Models of Banking. Retrieved from
www.linkedin.com: https://www.linkedin.com/pulse/five-business-models-banking-
chris-nichols

Rafiq Hasan (2005). Remittance growth defies manpower export decline
http://dspace.bracu.ac.bd/xmlui/handle/10361/15826
Stobierski, T. (2021, June 29). INTERNATIONAL BUSINESS EXAMPLES TO LEARN
FROM. Retrieved from www.hbs.edu: https://online.hbs.edu/blog/post/international-
business-examples
Thunderbird. (2021, March 31). Political and Legal Nuances. Retrieved from
www.thunderbird.asu.edu: https://thunderbird.asu.edu/thought-
leadership/insights/challenges-international-business

Appendix 2 Questionnaire
“A Study on International Business Activities within Sonali Bank Limited”
This is Loknath Saha a student of BBA program, Bangabandhu Sheikh Mujibur Rahman
Science and Technology University. I am conducting a research on the topic “International
Business Activities within Sonali Bank Limited ". I am assuring you that your
information will be used exclusively for academic purpose only and will be kept undisclosed.
Please write down the correct answer you think appropriate by tick (√) in specified type and
answer
Sec-01: General Information:
Name (Optional):…………………………………………………………….
Address (Optional):………………………………………………………….
Age:………………………………………………………………………….
Gender:……………………………………………………………………....
1. Question: International expansion enhances a company's competitive advantage in the

global market.
Options:
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
e) Strongly Disagree

2. Question: Investing in foreign markets can mitigate risks associated with domestic
economic fluctuations.
Options:
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
3. Question: Adopting a standardized global marketing strategy is more effective than

localized approaches.
Options:
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
4. Question: Cultural differences significantly impact the success of international business

ventures.
Options:
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
5. Question: Tariff and non-tariff barriers have a substantial influence on international trade
flows.
Options:
a) Agree
b) Strongly Agree

c) Neutral
d) Disagree
6. Question: Exchange rate fluctuations can greatly affect international business profitability.
Options:
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
7. Question: Joint ventures with local partners are a viable strategy for entering new
international markets.
Options:
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
8. Question: The Letter of Credit (LC) is an essential and secure payment method for
international trade transactions.
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
9. Question: Foreign remittance services are crucial for enabling international money
transfers and supporting global financial flows.
a) Agree

b) Strongly Agree
c) Neutral
d) Disagree
10. Question: Foreign exchange services offered by banks play a vital role in managing
currency risks for international businesses.
a) Agree
b) Strongly Agree
c) Neutral
d) Disagree
Thank You for your co-operation.

Appendix 3 Joining Letters

Appendix 4 Approved by Supervisor

Appendix 5 CV
CURRICULUM VITAE OF
LOKNATH SAHA
Address & Contract:

C/O: Swapan Kumar Saha
Village: Patgati Bazar
Post: Patgati
Upazila: Tungipara
Dist: Gopalganj
Mobile: +8801517174817
E-mail: loknathsaha822@gmail.com
CAREER OBJECTIVE:
To build a career working in a challenging environment with excellent career development
prospects. Where had work, strict & discipline good communications skills& creative
problem solving are the career stone of success.
ACADEMIC PROFILE:
Bachelor of Business Administration (B.B.A
Honors)
Institute: : Bangabandhu Sheikh Mujibur Rahman Science &
Technology University, GopalGanj.
Department : Management Studies
Session : 2017-2018
Passing Year : 2021
Result : Appeared
Higher Secondary Certificate (H.S.C)

Institute : Govt. Sheikh Mujibur Rahman College,
Gopalganj
Group : Science
Board : Dhaka
Passing Year : 2016
Result : GPA 4.17 (Out of 5)
Secondary School Certificate (S.S.C)
Institute : G.T Govt High School

Group : Science
Board : Dhaka
Passing Year : 2014

Result : GPA 4.81 (Out of 5)
COMPUTER SKILLS
Microsoft Office Package (Word, Excel, PowerPoint)
Email using capability (Gmail, Yahoo, Outlook)
Internet Browsing
LANGUAGE SKILLS
Language Reading Writing Speaking
Bangla Excellent Excellent Excellent
English Excellent Excellent Excellent
PERSONAL INFORMATION
Name : Loknath Saha

Father’s name : Swapan Kumar Saha
Mother’s name : Gaytree Rani Saha
Permanent address : Village: Patgati, Post:Patgati, Upazila: Tungipra, Dist: Gopalganj
Date of birth : 20/12/1998

Nationality : Bangladeshi
REFERENCES
Taslim Ahammed Ishita Roy
Designation: Assistant Professor Designation: Chairman & Associate Professor
Department of Management Studies Department of Management Studies
BSMRSTU,Gopalganj Management, BSMRSTU, Gopalganj
Mobile:+8801627807137 Mobile: +8801716355505
E-mail:taslima.ahammad@gmail.com Email: ishita_ipu@yahoo.com
CERTIFICATION
I declare here that all information I have presented so far is true to my knowledge.
Signature:

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Bangabandhu Sheikh Mujibur Rahman Science

and Technology University, Gopalganj-8100

Title: A Study on International Business

Date of Submission: 06 August, 2023

strength to perform responsibilities and complete the internship report.

Secondly, I would like to express my heartiest gratitude to my honorable teacher and

without his responsible guidance, instruction, personal and advice.

me to complete the report successfully. I would like to thank my internship supervisor,

Taslim Ahammad, Assistant Professor Department of Management Studies, Bangabandhu

Loknath (055) Page 1 of 62

Department of Management Studies

Subject: Submission of Internship Report.

partial requirement for the competition of Bachelor of Business Administration degree.

suggested. I tried my best to make this report as much informative as possible.

and evaluate my performance.

Department of Management Studies BSMRSTU

Loknath (055) Page 2 of 62

I wish you every success in life.

Department of Management Studies

Bangabandhu Sheikh Mujibur Rahman Science and Technology University Gopalganj-8100.

Our Honorable course instructor Taslim Ahammad inspired me to prepare Internship

Loknath (055) Page 3 of 62

operations, including international expansion strategies, foreign investments, and trade-

stakeholders within Sonali Bank Limited, supplemented by a comprehensive review of

recommendations for enhancing efficiency and effectiveness in international operations. The

study's implications extend to other financial institutions in Bangladesh and beyond, as it

Keywords: International Business, International Business Management, SBL.

Loknath (055) Page 4 of 62

Loknath (055) Page 5 of 62

Loknath (055) Page 6 of 62

across borders. In particular, losses on international exposures put significant pressure on

financial exposures (JEL, 2010).The study of international business involves understanding

governments, companies, and individuals. Successful international businesses recognize the

doing business in a continually changing global market.Internationalization of organizations

Loknath (055) Page 7 of 62

Loknath (055) Page 8 of 62

according to the bank's annual report (www.sonalibank.com, 2023).

implementations in Sonali Bank Limited.

1.4 Origin of the study

This report is prepared as a course requirement of BBA program, Bangabandhu Sheikh

this report are:

 Fulfillment of the requirements of BBA program.

 To gain Practical knowledge about banking operation and activities.

 To investigate the similarity and dissimilarity between my theoretical and practical

Loknath (055) Page 9 of 62

challenges, and opportunities, contributing to a better understanding of the bank's

performance in the international area.

 To examine the range of international business activities conducted by Sonali Bank

Limited, including foreign trade, correspondent banking, and cross-border financial

 To evaluate the challenges faced by Sonali Bank in conducting international business

and how these challenges are mitigated.

 To explore the impact of international business activities on Sonali Bank's overall

financial health and its position in the domestic banking sector.

1.10 Research Questions

Research questions are included in below

endeavors, and how does the bank address these challenges?

Loknath (055) Page 10 of 62

performance and competitiveness within the domestic banking sector?

Loknath (055) Page 11 of 62