Economic liberalization, globalization and rapid development in information technology and transportation networks have integrated the world economy. The seamless and free movement of goods and services, labor, capital and technology internationally has brought the entire world into a single investment and trade network.

Since 2004, Nepal has become a member of the World Trade Organization (WTO) and entered into globalization, and has entered the international level of competitive trade. Nepal is trying to be competitive in world trade by increasing access to international level of goods and services with our comparative advantage and competitive ability. 

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 

Since the domestic production is very weak, a large number of Nepali manpower is migrating every year in search of work due to the lack of job creation in the country. Because of this, the country's economy is becoming dependent on imports and remittances. Thus, on the one hand, domestic production has not been increased and on the other hand, even the imported goods and services have not been equitably distributed.

Issues and challenges

There are still investment and business-friendly legal and policy issues. Lack of adequate infrastructure, services related to investment and trade could not be provided from one place. Investors complain that business costs are high due to procedural hassles for investment approval, renewal and exit.

Similarly, due to the failure to manage and regulate imports, the situation of black market, monopolies, and cartelization has been created, resulting in the lack of essential goods and services for the people. Although the development of information, communication and technology has made business very easy, it has not been able to take maximum advantage due to information technology and digital divide. Therefore, increasing domestic production, managing imports, identifying goods and services with comparative advantage and competitiveness and taking them to the international level, fair distribution of available goods and services are challenges. Linking business with investment, maintaining the quality of manufactured goods, creating investment and business friendly environment etc. are the main challenges seen in the industry and business sector.

Comparative advantage and areas of potential

In today's era of globalization, it often seems impossible for any country to be completely self-sufficient. As comparative advantage and competitive ability are seen in business, it is necessary to conduct more studies and research on the possibilities of such goods and services. 

There are many areas of comparative advantage and competitive potential in Nepal. Nepal's main potential lies in agriculture. Integrated farming system using land management and technology, expansion of agricultural production and modernization of agriculture should be transformed from subsistence agriculture to commercial agriculture. Emphasis should be placed on the development of industry through the processing of agriculture-based products. 

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.0

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.1

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.2

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.3

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.4

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.5

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.6

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.7

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.8

With the advent of globalization, despite the increase in the scope, area and opportunities of investment and trade, Nepal has to bear a huge trade loss every year due to the inability to increase the competitiveness of Nepali products and increase their access to the international market.9

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 0

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 1

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 2

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 3

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 4

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 5

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 6

The trade deficit of the financial year 2079/80 is over 14 and a half billion rupees. Although it is less than the previous year, the gap between import and export is huge. Due to the inability to increase domestic production, domestic trade is also dominated by international trade. Domestic and foreign investment has not been increased as expected in areas with comparative advantage and competitive ability. 7