Analysis about Foreign Trade

Every country should involve in foreign trade to buy necessary products or to sale products, foreign currency is very valuable for every country to buy foreign products as well as without maintain foreign currency quantity in central bank, cannot be maintained domestic currency value. It is played important role in all economy of any country. Then question is that, how can we sale our products to foreign highly price competition market, it is most thinkable matter around the world.

I am going to explanation by using example. In our country, there are so many fell down trees in jungle, as well as unemployed man power in country. By using those fell down trees and unemployed man power, we are able to make one bed, which cost price is Rs 25000, and transportation cost is Rs 2000 to reach foreign market, but same bed is available in foreign market Rs 24000. At that situation if we think in normal way, we can ignore to make bed in Nepal, but if we analyse it deeply, we should make it for getting benefit. Because if government subsidy by Rs 3000 per bed to purpose to sale foreign market, then we can sale our products in foreign market in Rs 24000, which played role to increase our national income by 21000, increase foreign currency, and employment as well. From every way, we can get benefit if we have available idle raw material and unemployed man power in country. This simple example can use all sectors of our country and we will be able to sale good to foreign countries by using idle manpower and available raw materials.