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10 Measure to reduce trade deficit of Nepal


 International Trade

Exchanging goods and services between different people is known as trade. In other words, exchanging goods and services for the satisfaction of human want is known as trade. The process of exchanging goods and services between one or more countries is known as international trade. In other words, the process of exchanging goods and services for the satisfaction of human wants in different countries is known as international trade. International trade is also known as foreign trade and external trade. Import and export is the main part of international trade. Export refers to selling goods and services to one or more countries, whereas import refers to buying goods and services from one or more countries. International trade was started in the 16-17 centuries.

Some definitions of international trade are given by economists.
According to D.G.Luckett, 'The purpose of goods and services by the citizen of one country from the citizen of another country is called international trade."
According to R.G Lispey and K.A. Chrystal. 'International trade refers to the exchanges of goods and services that takes place across international boundaries."

10 Measures to Reduce Trade Deficit in Nepal

i. Rapid Industrialization: Industrialization is very slow in Nepal. As you know that Nepal is still in the undeveloped and infant stage. There is no good business environment for the development of industrial sectors. The main problem of the trade deficit is export and import, In Nepal, export is very low and import is very high. To reduce the trade deficit in Nepal, Rapid industrialization is necessary.

ii. Production of high quality: As you know that in Nepal, there is a low quality of goods with high prices due to the use of traditional technology and inefficient manpower. Low-quality goods cannot export to the international market. Every Nepalese entrepreneur should be aware of the quality of production. Both national and international markets demand quality goods production only. Nepal should improve export by providing quality production goods, By providing quality goods and services in both national and international markets will help to reduce the trade deficit in Nepal.    

iii. Publicity and Advertisement: Foreign country goods and services are highly exported to the international market due to publicity and advertisement of their production. In Nepal, some of the domestic products are quality goods but their products are not exported in the international market due to lack of publicity and advertisement. To reduce the trade deficit in Nepal should promote domestic products through publicity and advertisement.
Read More: List of Commerical Banks in Nepal

iv. Reduce the cost of production: Production cost was very high in Nepal compared to neighboring countries. The cost of production was very high due to the use of traditional technology and manpower. The high cost of production causes a rise in the price of the product. It is difficult to export goods in the international market due to the high cost of the product.  In order to reduce the trade deficit in Nepal, the cost of production should be reduced.

Some other points to measure the trade deficit in Nepal;
v. Development of the agricultural sector: 
vi. Development of the hydroelectricity sector:
vii: Use of Modern techniques: 
viii. Increase in production: 
ix. Diversification of trade:
x. Formulation of proper trade policy:

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