2. a. What is industry life cycle? Give an example of an industry in Stage 2 (growth phase) of the industrial life cycle. Discuss your reasoning for putting the industry in Stage 2 (growth phase) and any evidence that caused you to select this industry.

6.5

b. What is barometric approach? Assume the following barometric indicators and analysis the prospect of Bangladesh RMG sector in the coming year. Historical Trend: No growth GDP: Stable growth Population Growth: Remain Same Rate of inflation : Increase Interest rate : Decrease International political situations : Turmoil Budget deficit : Present Cotton price : Increase Weather conditions : Unpredictable