Master's Thesis from the year 2013 in the subject Business economics - Economic Policy, Sun-Yat-sen-University, course: International Master of Public Administration, language: English, abstract: Bangladesh is a promising developing nation in South Asia region. Based on the World Bank report, Bangladesh has ranked 122 among 183 countries in 2012 globally in terms of ease of doing business. The present study attempted to investigate the major problems areas which influence FDI inflows in Bangladesh. More importantly, the inflows of FDI in Bangladesh have declined since 2008-09. This study sought to analyze the current business environment and how to create a congenial climate for attracting FDI in Bangladesh. The study also shows that the declining trend of FDI inflows in Bangladesh is directly corollary of the political situation. For creating a good business environment, Political stability of the host country is the prime determinant for attracting FDI.