Final answer:
The economies of Nepal and Bhutan are largely based on agriculture and forestry, with tourism being significant as well, particularly in Nepal. Both countries face environmental challenges related to their economic activities.
Step-by-step explanation:
The economies of Nepal and Bhutan are significantly influenced by activities such as agriculture, forestry, tourism, and cultural practices. In Bhutan, forestry and agriculture are major economic activities, engaging about 60% of the population. Nonetheless, tourism plays a crucial role, albeit highly regulated, with strict measures to protect the environment and maintain cultural integrity. Nepal's economy also heavily relies on agriculture, but tourism is a critical and growing sector. The country's natural attractions, including Mount Everest, and rich cultural heritage sites are major draws for tourists worldwide. However, both countries face challenges with environmental degradation due to deforestation and soil erosion, partly due to agricultural practices and infrastructural demands of tourism.