Trade is the act of buying and selling of goods between two parties with a view to earning profit. It makes a link between the producers and consumers. The parties or person involved in the trade is called traders.
Traders buy goods in one part of the country and sell in other places inside Nepal. Fruits vegetables, animals, wood and some manufactured goods such as Coca-Cola and noodles move around like this. This is an internal trade.
Very few countries have everything they need. For example, many countries have no oil. So countries buy goods (import) from other countries and sell other goods (export) to other countries. It is good to sell more than you buy. This is trade surplus. If a country buys more than it sells, it has a trade deficit which means less money for investment and development. The patterns of foreign trade are very complicated, and an important part of world politics, but many LDC export one or two raw materials (such as coffee, sugar, cotton), while MDC export more expensive manufactured goods.
Some big countries such as India have tried a policy of being self-sufficient, that is not to trade at all with other countries, but only to use their own natural and human resources, and developing their own industries to supply all their own national needs. The importance of foreign trade are as follows: -
Nepal’sforeigntrade is in deficit. The trade is India-centered, but the government has started trade diversification by keeping trade relation with other countries. Nepal exports raw materials at a low price and imports manufactured goods at the high price. The main exports of our country are ready-made dresses, carpets, agriculture and forest-related goods. But the foreign market of many of our exports has declined recently.
Nepal'sforeigntrade is not prospering. It has many problems, which are,
International trade is important in Nepal for following reasons:
Yes, there are more problems of Nepal's international trade, which are listed below:
These problems can be solved by implementing following points:
The benefits of trade of foreign in Nepal are:
Buying and selling the goods and services with other countries is called ______.
International trade is getting popular because it ______.
international products are good
international companies bribes for popularity
helps to make better and cheaper goods
helps in the development of nation
Nepal's international trade is in loss because ______.
high imports of luxury goods
low exports of primary goods
all the options are correct
Efforts should be made to reduce imports and increase exports so that ______.
export make nation poor
our trade balance is improved
imports make shopkeepers in gain
people are forced to used national products