1. Describe the importance of the cottage industry in Nepal.
Ans: Cottage and small scale industries play a vital role in the process of economic development of a developing country like Nepal. The main importance of cottage industries are as follows:-
- Presentation of local culture and art:-
Cottage industries produce goods depicting or reflecting local arts, skills, and cultures which can help to preserve them.
2. Generation of employment opportunities:-
Mostly cottage industries are labor-intensive in nature that they provide more employment opportunities to the people.
3. Utilization of local resources:-
Locally available materials like stone, soil, woods, herbs, bamboos, animal skins, etc to produce capital goods. So, it helps to utilize local resources.
4. Easy to establish:-
There is no need to collect more capital, technical knowledge, complicated procedures, and documents to establish a cottage industry. So, it is easy to establish as compared to other industries.
5. Foreign exchange earning:-
Cottage and small industries produce handicrafts, woolen shawl (Pashmina), paper and paper made products, readymade garments, clothes, wooden crafts, carpets, statues, metal products, etc which are popular in foreign markets. It helps to earn foreign money.
2. Describe the importance of the tourism industry in Nepal.
Ans:- Tourism industry is that type of industry that provides different kinds of facilities for tourists like a hotel, lodge, travel agencies, trekking agents, etc. Some of the major contributions of the tourism sector to the national economy are as follows:-
- Source of foreign exchange earnings:–
The tourism industry sector contributes around 5% of the total foreign currency earnings. So, it is one of the major sources of foreign currency earnings.
2. Employment opportunities:-
The tourism sector provides employment opportunities related to hotels, lodges, travel agencies, mountaineering, etc. directly or indirectly.
3. Development of rural infrastructures:-
Since tourists like to visit natural beauty, sightseeing, and trekking in remote areas, basic infrastructures like transportation and communication are necessary. So the development of the tourism sector helps to develop rural infrastructures.
4. Development of handicraft industries:-
Especially tourists like to buy local handicrafts like arts, shawls, woolen carpets, paper products, statues, etc. which reflects the cultures. So, it encourages in establishing handicraft industries.
5. Cultural exchange:-
Interaction among people from different places and countries helps to exchange each other’s culture, art, custom, and language. It also helps to change in supersites and traditional thinking.
3. Explain the prospects of the tourism industry in Nepal.
Ans: Nepal is wealthy in natural beauty. So, there are many possibilities for growth in the tourism industry in Nepal. Some of the major prospects of the tourism industry are as follows:-
- White mountains:–
There are 8 world peaks above 800 meters high out of 14 in Nepal. There are numerous other peaks like Annapurna, Kanchenjunga, Dhaulagiri, Machhapuchhre, etc including the world’s highest mountain Mt. Everest which attracts tourists to visit in Nepal.
2. Unique places for recreation:-
Nepal is famous for recreational activities such as boating, rafting, trekking, paragliding, mountaineering, bungee jumping, nightclubs, disco centers, etc.
3. Less expensive:-
The cost of living in Nepal is very low in comparison to other countries. So, they may enjoy and stay for a long time at a very low cost.
4. Cultural diversity:-
Nepal is a garden of multi-ethnic groups with different languages, cultures, ways of living, etc which attracts the heart of tourists.
5. Natural beauty:-
Nepal is a country of full natural beauties such as the glittering White Mountains, interesting and secret caves, foaming waterfalls, lakes, rivers, rare wild animals, etc. They are the main factors which can attract tourists from all over the world.
Principles of Economics of Grade 11
We hope it helped you to know a little bit about industry.