The political system of Bangladesh is followed by representative democracy. Despite being a democratic country the safeguards of democracy are not being exercised properly which have negative impact on business operation. Political unrest is almost a daily occurrence in Bangladesh which hinders the daily national and international trading system of the country. Foreign firms are feared to come in Bangladesh with FDI. Bangladesh is democratic country in name but not in action. The following biased democracy safeguards are some of the main hindrances of international business in Bangladesh.  Individual right to freedom of expression, opinion and organization are restricted.  Media are more or less biased to the current government.  There is more or less regular election sometimes major parties avoid election.  There are often face to face clashes among the leading political parties.  Despite being the court system is independent most of the times its functions are directed by current government.  Corrupted political state bureaucracy  Corrupted political police and armed force. This situation does not support entrepreneurship that’s why it can not make a man innovative. That’s why local business can not be strong. To be competitive in international business such political system and government is failing to make local business more efficient and more effective. That’s why Bangladesh is lagging behind in international business competition. Since that time Bangladesh is facing huge challenges, including a political and economic, serious poverty problems as one of the world's poorest countries, annual floods on its low-lying coasts, power shortages and rampant corruption. However, some recent political and economic developments are encouraging. The economy grew 6.5% during the 2007 fiscal year, following a growth rate of 6.6% in 2006. According to the World Economic Forum Global Competitiveness Report 2007-2008, corruption is seemed to be the greatest problem by companies facing economic development and doing business in Bangladesh. Most of the leaders of the leading political parties are highly corrupted. The leading parties are dominated mostly by the family members of the chairperson of the parties. For example: The two dominant parties, the Awami League and the Bangladesh National Party, have been dominated by the central leaders of the two parties and their relatives. Most of them are corrupted and charged by the law. When the two parties were in power then they didn’t separate the judiciary system from the executive because they used judiciary system for their own ends. But recently under the power of the present care taker government the Supreme Court had passed an order to the government to separate the judiciary from the executive, the order was finally implemented in November 2007. Although the judiciary is separated from the executive still the present government has influence on the judiciary system. And we don’t know what’s going to happen in near future. Furthermore, recently under the power of the present care taker government the Anti-Corruption Committee and the Electoral Commission have been restructured. The reconstituted Anti-Corruption Committee has been successful in regaining a positive image through its anti-corruption campaign. But nobody in Bangladesh is up to corruption as several of its officials were taking bribes. Property rights are legally protected in Bangladesh. Nevertheless, land purchase and leasing issues are stained with uncertainties. According to the US Department of State 2007 and the Bertelsmann Foundation 2008, the situation persists because of antiquated real property laws. In addition, land registration records are estimated unreliable. Often parties do not register mortgages, liens etc. because of expensive duties and fees. The uncertainties are further aggravated because the instruments only take effect from the date of execution and not the date of registration. According to the US Department of State 2007, a major obstacle to investment in Bangladesh is a weak and slow legal system where the enforceability of contracts is characterized as unreliable. In the lower courts, where cases are first heard, corruption is perceived as a severe problem. The Bangladesh Export Promotion Bureau is known to offer assistance in dispute settlement of export-related transactions. The economic system of Bangladesh is characterized by mixed economy in Bangladesh certain sectors of the economy are left to private ownership and free market mechanism while other sectors have significant state ownership and government planning. Once there was a large state sector in Bangladesh but recent tend to privatization has reduced state ownership of various businesses. Some of the recent privatized sectors are airlines, banking, customs etc. this tend to privatization is creating a favorable atmosphere for international business. As foreign firms can invest in the privatized sector there will be a positive impact on the economy of Bangladesh.