Page 303 - 9 teachers social book 9 @ 2077 ctp_Neat

Optimum utilization of resources

Earning of foreign currency
Promotes employment opportunities.
Brings progress in internal and external trade.

Give benefits to the consumers by importing products from various countries in
cheaper rate and it controls price hiking.
Foreign trade fulfills the basic need by supplying the products from foreign
countries. Such as LPG and other petroleum products, iron, steel, paper, food
items, textiles, etc.

It helps to acquire foreign currencies by exporting local products.
To maintain international standard of goods the industry needs to establish
with advanced technology.
External trade helps to maintain and expands trade relationship with many
countries. In order to maintain trade relations Nepal has become the member
of the World Trade Organization.

Trend of foreign Trade in Nepal

The present practice of foreign trade is not beneficial for the country in terms of
economic enhancement. Nepal has been conducting foreign trade since the time
immemorial. In the past, the trade relations were maintained with very less countries
but it was very strong. Nepal was economically very strong in economy. It mostly
exported goods to India, China and Tibet and imported from the same nations. About
trade with India, it is mentioned in Arthashastra of Kautilya, the famous economist
of India. According to him the woollen blanket had high demands in Indian market.
Along with it Nepal used to export hide, musk, herbs, etc. to India as well as Tibet and
China. Still Nepal’s trade is hugely based on closest neighbours. Mostly it is fostered
with India very highly. Nepal imports many items from other countries and exports
too. These are discussed below:

Export Trend

Export trend of Nepal is very poor. It is mostly limited to agricultural and semi-
processed product because there are very less industries established in Nepal. Nepal
mainly exports Tea, carpet, oil seeds, textile (Nepali garments) and curio arts.

Import Trend

Nepal depends on many items to other countries. It lacks many goods to produce
due to lack of industries. The products which are imported by Nepal are petroleum
products, machinery goods, electrical appliances, medicines, salts, fertilizers, motor
and motor parts, dairy products, construction materials, etc.

303 Dynamic Social Studies - Book IX