Tuesday, April 6, 2010


Tuesday, April 6, 2010
Trade means of earnings. The activity of buying and selling or exchanging goods or services between people or countries is called trade. Many people of Nepal follow this occupation. There are two types of trade: internal trade and external trade.

Internal Trade
When goods are purchased in one place of Nepal, carried the same to other parts and sold, it is called internal trade. So, the trade that is carried on within the country is internal trade. Nepal, though it is small in size, has different climate types and different types of soil. So, a wide variety of food crops and cash crops are grown here. Similarly, the varieties of races of people have different ways of life with different habits and tastes. With the help of internal trade, people living in one part of the country can use the things that are produced in other parts. The apples that are grown in Jumla and Mustang districts are the favourites of the people living in town areas of Kathmandu, Pokhara, Tansen and other places. Similarly, the rice grown in the terai is made available to the people of Manang, Humal and Taplejung districts. All these facilities are due to the improved means of transport and communication. Nepal has different highways through which trucks and buses carry goods from one place to another. Many places are also connected with airways. Air services carry goods and people from one place to another in a short time. Air services are available even in the remote places where motorable roads are not available. Thus, the roadways and airways help to a large extent to develop the internal trade of country of Nepal.

External Trade
There are some people in Nepal who have trade links with other countries. They take goods from Nepal and sell the same to other countries. Similarly, they buy things in other countries and bring the same to Nepal and sell in the local markets. When local products are carried to other countries and sold, it is called export. When foreign goods are brought to country, it is called import. This is what it is called external trade. Because of external or international trade people of Nepal are able to wear clothes that were made in America, Nepalese use radio and television that were made in Japan and Korea. Likewise, the German people use carpets that are made in Nepal and the Australians use herbs and roots to produce medicine that are found in Nepal.
Nepal export rice, maize, jute, herbs and roots, wood, wool, butter and ready-made clothes to other countries. They also export carpet, wood carving and art works in a large quantity. Among the things that import are clothes, salt, medicines, machinery goods, engines, equipment and stationery goods. Nepal has trade relations with neighbouring countries. Nepal has extended trade relations with countries like America, Japan, Korea, Australia, England, France, Germany, Canada, etc. Three ways such as roadways, airways and waterways are important in external trade with other countries. As Nepal is a land-locked country, there is not facility of waterways. But with the help of India and Bangladesh, this facility has been made available for the Nepalese traders to carry on their international trade.
Trade is a very important means of earning. Many of the traders are among the richest people in the country. Government of Nepal also gets taxes from the traders which help to increase the economy of the country.


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