Country Analysis for Emerging Business

Running head: COUNTRY ANALYSIS FOR EMERGING BUSINESS
COUNTRY ANALYSIS FOR EMERGING BUSINESS
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1COUNTRY ANALYSIS FOR EMERGING BUSINESS
Executive summary
Every year Nepal approximately exports $661.2 million worth of juices, zinc sheets, woollen
carpets, polyester yarn, pulses, garments, and the agricultural items. The main imports of
Nepal are the products from Nepal, vehicles, machinery and parts, gold, medicines,
telecommunications equipment and the electrical goods. The other sector in which reflects the
commercial opportunities following the deregulation involving the civil aviation and the
telecommunications. This study analyses the present condition of Nepal and also identifies the
benefits the country is able to produce for the emerging business market in Nepal.

2COUNTRY ANALYSIS FOR EMERGING BUSINESS
General overview of the country or region
Nepal is considered as the landlocked country that is located in South Asia with the
annual Gross Domestic Product (GDP) of the roughly USD 19 billion. The total trade of Nepal
comprise of USD 7.92 billion and it is one of the smallest share in the global economy. Nepal
is located between India and China and the business market in Nepal is also attractive for the
foreign investment. The agriculture accounts for the 28.9% of GDP and reflects 65.7% of the
employment. There has also been the important rate of migration of people from the rural to
the urban areas and overseas. It has established the friendly laws for investment and the
regulations. The corruption, the laws which has limited the functioning of the foreign banks,
the practical limitations on the repatriation of the profits, the limited facilities for currency
exchange, monopoly of government over the crucial areas like the transmission of electricity
and the distribution of petroleum undermines the foreign investment in the landlocked nation,
Nepal. This study mainly draws light on the factors of the country that enhances the growth of
the emerging business. This study also discuses the opportunities that can increase the foreign
direct investment.
Political, Economic, Socio-cultural and Technological influences/benefits/ advantages
As per the record of the Bank doing business report (2013), Nepal ranked 105th out of
the 185 economies. Nepal is currently recovering from the political uncertain state by
finalizing the new constitution and updating the social structures with the developed countries
(Nightingale 2017).
The key objectives of the economic policy of Nepal is to encourage afair and the
transparent business environment for both the domestic and the foreign companies. Nepal has

3COUNTRY ANALYSIS FOR EMERGING BUSINESS
also established the competitive market economy system through the privatization of the
public enterprises and adopted the competition policy (Basnyat, Lovelock and Carr 2017).
However, the FDI policy are still very limited due to the high cost of doing business with the
limited investment opportunity and the political instability (Vij et al. 2018).
The socio-cultural environment of the Nepal has been changing drastically for the last
two decades with various changes in the society, culture, economic and the gender
composition of the workforce of the economy. The emerging, the unique changes in the class
structure has also opened up the new frontiers of both the economic and the business activities.
The factors reflects the widening base of the nation’s business sectors that are the middle class
house makers plays an active role in managing the household activities and the shifting in the
lifestyles the Nepal is currently facing the great challenges and paradigm shift in the diet of the
people (Wise and Darmstadt 2015). The urban teenagers who are from the middle and the
upper class of the society are now emerging and the teenagers from the urbanized parts
belongs from the middle and the upper class families have emerged as the sizeable and the
unique market segments. The socio cultural condition of Nepal attracts more and more
emerging business market.
The technological advancement have taken place in Nepal from the earlier condition
that is by the introduction and development of the ICT in Nepal and this has cause the increase
in the use of the telecom sectors. There has also been increase in the internet penetration of the
63% as recorded in 2014 – 2016. In the remote areas of Nepal also there has been the
introduction of internet and this reflect the successful formulation of the Nepal Wireless
Networking Project in 2002 and this has maximised the use of the ICT and improves the social