Subject: Social Studies and Population Education
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,
Trade is the practice of buying or selling of goods and services for profit.
Our international trade is India-centric. Most of our imports are done from India. Our economy sustains with Indian help. As Nepal is small and less developed country we don't have much to offer for export. To improve the trade deficit Nepal must improve its output for trading. Better qualitative and expensive products should be encouraged for export. Our trade must diversify. We should trade keeping good relation with other countries.
International trade is important in Nepal for following reasons:
These problems can be solved by implementing following points:
Nepalese trade highly depends on India. Lack of export of primary goods, import of readymade and manufactured goods, imports of luxury goods, high import cost, lack of study and research are some of the characteristics of Nepalese foreign trade.
If the things to be sold are of higher price than the things to be bought, it is considered as a trade surplus and if the things to be sold are lower price than the things to be brought, it is considered as trade deflect.
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