Prospects of Export Business in Nepal

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CHAPTER 1 INTRODUCTION 1.1 Trade history of Nepal Nepalese trade is ancient as its history. In ancient times, barter trade prevailed at domestic and border trade. Geographical constraints of Nepal became barrier to expand the trade other than India and Tibet. For the detail, the trade history is categorized in following 3 aspects (with china, India, and overseas) Trade with Tibet (China) Nepal's ancient trade history with Tibet started using barter system at the time of beginning Malla and Lichchhavi regime. In 17th century, the establishment of an empire in the Tibet initiated the new Trans-Himalayan trading routes between the Indian and Chinese cities. Nepal had been transit point for two big countries. Trade relations between Nepal and Tibet had grown with the commercial policy of Malla rulers, who played a significant role in boosting up trade. New urban trading center like Sankhapur, Palanchok, Dolakha and Nuwakot had been developed as trade market and activated trade traffic through caravan to Kerung and Kuti. Prithivi Narayan Shah (The king who united Nepal) also wanted to monopolize enter-port trade marts in border of India and Tibet to transshipment by the Nepalese merchant which is defused by Tibetans. In 1770, Tibet closed trade routes to Nepal and suspended all commercial transaction between two countries. To promote trade, a treaty was signed up with Tibet after conflagration of 1791 and another after the war of 1856, the treaties, at reviving the Trans-Himalayan trade with Kathmandu as an enter-port center. Tibetan enchanted by the speculation in business with Indian started ignoring Nepalese merchants. As a result it reduced the trade traffic between Nepal and Tibet. The number of Nepalese merchant in Lhasa dropped from 2000 to 500 in 1907 and to 40 in 1923. Nepal and China signed an arrangement based on five principles of peace co-existence

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