Answer to Question #162063 in Economics for bobby

Question

Matrix method is highly used for decision making for trade related issues in economic development. What are the main problems and prospects of transforming national economy by applying such models in real-life economic development interventions?  

 

1.    Present a snapshot of trade related issues in economic development in the Nepal. 

2.    Discuss a few factors that have contributed to trade issues in the Nepal for the past few decades. 

3.    Provide an analysis of the concepts presented that demonstrates and summarizes the various factors that influence trade markets.

4.    Summarize what are the possible models can be to resolve the trade problems

Answer 1

The problems of Nepal's international trade are listed below:

• Lack of technology for industrial development.
• Open border.
• More import and less export.
• Heavy import of luxurious goods.
• Landlockedness.
• Poor mobilizing of available resources.
• Lack of industrials as well as agricultural products.

Being an agriculture-based economy, Nepal has to use agricultural products to deal with the ever-growing trade deficit. For this, the government must employ policies and subsidies to promote the sector. In the long run, Nepal has to focus on improving manufacturing industries with the help of foreign investment.