Subject: Social Studies
The process of buying and selling of goods and services on a market is known as trade. It is used in our
daily life. All the goods and services that we find in our surroundings is the result of trade.
Trade can be classified into two types which are given below:
Nepal is a least developed or a developing country. The main trade of Nepal is agriculture. But, it is insufficient to earn a better income for the people. Nepal is involved more in importing goods and less in
exporting goods. So, it is one of the reasons to be anunderdeveloped country. Being a landlocked country, it has no good access for importing goods. Nepalese trade is limited to India and other countries. Nepal has a good trade relationship with India only. Nepal imports machinery, textiles, electronic goods, petroleum etc. from foreign countries and exports only agro-goods like paddy, maize, timber, herbs, cardamom etc.
Trade diversification is the process of making the trade relationship good and wider with many countries. It is one of the solutions for the trade deficit of Nepal. Nepal followed the principle of trade diversification since 2013 B.S. At that time, Nepal had started trade with third countries apart from China and India. Now, Nepal has a good trade relationship with many countries like China, India, Germany, USA, Korea, Japan and so on.
There are various advantages of trade diversification. Some of them are given below:
Mention the benefits of trade diversification.
There are various advantages of trade diversification. Some of them are given below:
What is the condition of Nepalese trade? Mention.
Nepal is a least developed or a developing country. The main trade of Nepal is agriculture. But, it is insufficient to earn a better income for the people. Nepal involves more in importing goods and less in exporting goods. So, it is one of the reasons to be underdeveloped. Being a landlocked country, it has no good access for importing goods. Nepalese trade is limited to India and other countries. Nepal has good trade relationship with India only. Nepal imports machinery, textiles, electronics goods, petroleum etc. from foreign countries and exports only agro-goods like paddy, maize, timber, herbs, cardamon etc.
What are the types of trade? Explain with appropriate examples.
Trade can be classified into two types which are given below:
Internal Trade: The process of exchanging or buying and selling goods and services within the territory of a country is known as internal trade. It is done only inside the nation. For example, apple produced in Humla – Jumla is sold in Kathmandu and other different districts inside the nation.
External Trade: The process of exchanging or buying and selling goods and services to another country or outside the territory of a country is known as external trade. It is done outside the country. For example, the clothes of “Pashmina” made in Nepal are sold to England and other foreign countries.
Define the terms: export and import.
The process of buying goods from the foreign countries is said to be import.
The process of selling goods to foreign countries is said to be export.
What is trade diversification?
Trade diversification is the process of making the trade relationship good and wider with many countries.
Which countries have good trade relations with Nepal?
China, India, Germany, USA, Korea, Japan etc. have good trade relations with Nepal.
What is a trade?
The process of buying and selling of goods and services on a market is known as trade.
What is the main aim of trade?
The main aim of trade is to earn profit.
What is the main trade of Nepal?
The main trade of Nepal is agriculture.
What are the items that are imported by Nepal?
Machinery, textiles, electronic goods, petroleum etc. are the items that are imported by Nepal.
What are the agro-goods exported by Nepal?
Paddy, maize, timber, herbs, cardamom etc. are the agro-goods exported by Nepal.
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