1. Describe the importance of foreign employment in the Nepalese economy.
Ans: Nepalese economy includes labor migration, foreign employment, and remittance. They play a big role in the development of Nepal. Some of the major importance are as follows:-
- Increase in consumption pattern:-
Due to inflow in remittance, there is an increase in the consumption of basic goods, luxury goods, capital goods, etc.
2. Provides employment opportunities:-
Many unemployed people are working in foreign gulf countries like Malasia, Japan, South Korea, Kubet, etc. About 1500 Nepalese labors migrate foreign countries to work.
3. Improvement in Balance Of Payment (BOP):-
Nepal exports primary products and raw materials and in return, it imports the most expensive and modern items such as petroleum products, gold, vehicles, machines, etc. It creates a deficit in a BOP. Due to the inflow of remittance, BOP becoming surplus.
4. Development of human resources:-
Remittance helps to increaseThe literacy rate and life expectancy at birth. People can invest in remittance in the health and education sector. That means investment in human resource development.
5. Reduction in poverty:-
With the money of remittance, people can invest in education, business, health, or something which helps to reduce poverty.
2. Discuss the major indicators of the Nepalese economy.
Ans: The major indicators of the Nepalese economy are as follows:-
GDP (Gross Domestic Product) is the total market of all currently produced final goods and services within the boundary of a country in a year. In FY (Fiscal Year) 2018/19, the GDP of Nepal was Rs. 3464billion.
The total market value of all currently produced final goods and services within a nation plus net factor income from abroad (NFIA) is called GNP (Gross National Product). In FY 2018/19, the GNP of Nepal was Rs. 3507 billion.
PCI (Per Capita Income) is the average income of the individuals of a nation per period of time i.e. within a year. In FY 2018/19, the PCI of Nepal is 1047US$.
PCI=National Income/Total population
4. Price level:-
Price level is the average price of all the goods and services of a nation. In FY 2018/19, the annual percentage change in price level is 4.5%.
3. What are the disadvantages or costs of foreign employment in Nepal? Explain.
Ans: Despite the advantages of foreign employment, there are also disadvantages of its which are as follows:-
1. Shortage of manpower in the nation:-
There is lack of sufficient manpower in agriculture and industry sectors.
2. Brain drain:-
Developed and industrialized countries are hiring more trained manpower from underdeveloped countries. So, it is creating shortages of skilled manpower in the homeland.
3. Creates dependency:-
Dependence in remittance is increasing rapidly. People are just going abroad and not working in the homeland.
4. Problems in family:-
When the parents go to a foreign country, there will be a lack of proper guidance and maybe divorce between wife and husband due to far distance.
Principles of Economics of Grade 11
We hope it helped you to know a little bit about the overview of the Nepalese economy.