Note on Trade Diversification in Nepal

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The process of expanding trade or different items to different countries by not being limited only to specific goods and countries is called trade diversification.Many different factors can lead to trade diversification. A business may, for instance, become quite successful with one product and use its success to launch another product under the same brand. The development of new technology can also lead to diversification as technological advancements often allow for the development of new products. In some cases, diversification can lead a business to further success, thereby setting the foundation for further diversification.Trade can be diversified in two ways they are :

  • Regional or Country wise diversification
  • Goods wise diversification

Importers

Exported value in 2010

Exported value in 2011

Exported value in 2012

Exported value in 2013

Exported value in 2014

World

874,201

907,634

870,663

863,258

900,859

India

570,594

614,379

601,181

578,091

584,107

United States of America

54,654

70,282

56,489

68,236

75,372

Germany

35,733

40,902

29,514

33,534

32,341

China

13,628

10,214

21,914

20,235

28,010

United Kingdom

17,673

19,816

13,746

19,472

20,583

Bangladesh

59,994

26,037

37,945

17,067

18,636

Turkey

8,818

7,493

9,611

11,642

16,870

Afghanistan

14

117

3,634

12,064

15,824

France

16,682

15,632

10,479

12,521

12,382

Italy

9,528

10,629

8,232

9,563

11,873

Japan

8,188

9,180

8,983

10,916

11,432

Canada

11,333

11,627

7,100

8,340

8,666

Australia

4,035

4,639

3,687

5,319

5,843

Viet Nam

780

3,314

3,663

2,756

4,812

Netherlands

3,938

4,892

4,036

4,288

4,730

United Arab Emirates

2,335

5,954

3,680

4,076

4,034

Spain

2,979

4,287

2,384

2,843

3,649

Malaysia

430

1,376

875

2,278

3,494

Switzerland

2,905

2,993

1,862

3,194

3,227

Belgium

3,226

3,740

1,973

2,572

2,966

Sudan (North + South)

61

54

2,782

13

2,821

Thailand

240

2,189

5,277

4,130

2,620

Denmark

2,716

2,448

1,843

2,604

2,281

Norway

547

910

614

994

2,098

Regional or country wise diversification:

trade
Trade

The expansion of the trade of a particular product or country to a more geographical area is called Regional/country wise diversificationThey produce certain goods according to the available natural resources,technologies and manpower for their local market as well as the world market as far they can.It grows up the financial speed of a county.Such diversification helps a lot to flourish the trade.Nepal's foreign trade as limited only to India since the past.After the trade relation was made between Nepal and Tibet,import and export initiated with Tibet also .Nepal used to import salt,wool,sheep,goats etc from Tibet.Similarly, Nepal used to export rice,flour,chilies,sugar etc to Tibet.The fourth-five plan had adopted the principle of trade diversification.Nepal has now started to produce export quality goods and earns foreign currency by exporting them to many countries in the world.

Goods wise diversification:

Good wise diversification is the process of including different items for export.Territorialdiversification may not be enough for the promotion of trade so that every country tries to expand the variety of its export items also.This helps to increase the total volume of exports and the total income.Foreign trade should not be limited only to the production and sale of few goods and should produce and sell new goods according to the demand of world market.If we see Nepal's foreign trend we can find the good wise diversification increasing more than before.Nepal has export like oil cake,wood,maize,rice,pulse etc but nowadays it has been exporting handicrafts,woolen materials,readymade leather goods,silver jewellery,tea,carpet,leather,medicinal herbs,pulse,cardamom etc to India.Because of it,a kind of positive sign has been seen in Nepal's foreign trade.It would be better to earn more foreign currency if we could export readymade items rather than raw materials.

  • The process of expanding trade or different items to different countries by not being limited only to specific goods and countries is called trade diversification
  • The expansion of the trade of a particular product or country to a more geographical area is called Regional/country wise diversification
  • Good wise diversification is the process of including different items for export

 

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Very Short Questions

Trade diversification refers to the supply of goods and resources to different places within a country and outside without imitatingto a particular place or religion .The types of trade diversification are as follows:

  • Regional or Country wise Diversification
  • Goods wise diversification

It is necessary to develop regional or country wise diversification because it helps a lot to flourish the trade.

Diversification is required for trade promotion because it provides and eventually the financial speed a country gears up.

Yes,I am satisfied with the degree/level of trade diversification of Nepal because It provides and eventually the financial speed of a country gears up.

0%
  • _____________refers to the supply of goods and resources to different places within a country and outside without limiting to a particular place or religion.

    Trade promotion
    Trade Marketing
    Patterns of trade
  • The sell and distribution of produced goods in a particular region or country internally and externally is called ________________-

    Trade promotion
    Trade Marketing
    Goods-Wise divesification
  • In ancient time,Nepal used to import _______________

    sheep
    chyangra
    wood
  • In ancient time,Nepal used to export__________________

    sugar
    flour
    rice
  • Nepal used to export _____________

    Nepali paper
    wollen clothes
    medical herbs
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ganesh

when did nepal involve in trade diversification at first?


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Bibek

Why is trade diversification necessary for the promotion of trade?


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pragya Baral

Explain the possibilities of trade diversification of nepal


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