Answer:
Nepal can also develop in their trade activities if done the following things:
The possible ways are as follows:-
1. Strengthen Exporting Abilities: Growing the export sector is one of the best ways to reduce trade deficit. Nepal should identify and promote its exportable goods and services that can be sold in the international market.
2. Develop Business Environment: To attract foreign investment, Nepal needs to create a business-friendly environment with strong legal and regulatory frameworks.
3. Improve Infrastructure: Adequate infrastructure is essential for Nepal to increase its competitiveness in the international markets. Investment in infrastructure such as transportation, communication, and ports can reduce the cost of doing business, thereby increasing exports and reducing the trade deficit.
4. FDI Promotion: Nepal should actively promote and attract more foreign direct investments (FDIs) through measures such as tax and other incentives. This will help inject capital and create more employment opportunities, leading to an increase in exports and a reduction in the trade deficit.
5. Tap Tourist Potential: Tourism has the potential to generate substantial foreign exchange and reduce the trade deficit. The government should focus on improving the quality of services and facilities in tourism hubs while promoting Nepal's tourism industry abroad.
hope it helps