Chinese Goods in Nepal

Topics: Developed country, United States, Developing country Pages: 2 (577 words) Published: October 3, 2011
Chinese goods in Nepal
Nepal being a developing country should by all means import foreign goods to a certain extent. In order to grow economically strong, Nepal will require supplies that are not manufactured within the state. However, this does not give the country an excuse to completely abandon the goods produced by its local industries. The flooding of Chinese products in the nation has developed a sense of insecurity amongst the domestic producers for they fear they may run out of business. The main reason for the growth in the popularity of Chinese goods is due to its low prices. The poor are definitely able to afford more goods, however, cheaper goods mean cheap quality and consumers may suffer on account of both inferior quality as well as lack of after sales services. Low-priced goods from China also pose a great threat on the Nepalese market. They kill competition and the local small scale industries are forced to shut down as they are unable to put up with high productivity and competitive pricing of stronger businesses from China. Investors are discouraged to spend their money on new developments because of the high risks involved. This leads to serious fall in the country's total output. Along with the decrease in GDP, there is decrease in the employment rate of the country which often leads to social unrest. All nations wish to become self sufficiently economic; however for countries like Nepal such an achievement seems out of reach, especially if it decides to depend upon China for basic resources. Supplies of basic necessities such as food, electricity, and clothing should be managed by the country to a certain extent. If Nepal decides to stop manufacturing such goods in the belief that China will cover the demand of the entire population, it can bring its long, much desired dream of being named as a 'developed country' to an end. During times of war and chaos China will stop exporting goods to Nepal. In such cases, the country will suffer a...
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