Business in the 21st century has been able to expand its boundaries overwhelmingly, regardless of the geographical constraints. Nepal, a least developed country, has also been experiencing the waves of globalization that has smashed the traditional way of doing business.

Nepal became the 147th member of WTO after becoming the member of WTO Nepal also became part of the global trade.

Nepal practiced controlled economy. They were not efficient and competitive. Later on, after the initial years, business in Nepal began to realize their limitation as they were not geared to meet the challenges of global competition. As a result, companies in Nepal started to experience major adverse situations as companies from outside entered the native domain. Slowly, multinational companies started to capture the local market in Nepal.

For a landlocked country such as Nepal, chances of exchange of goods, people, knowledge, and ideas are opportunities that globalization has brought into Nepal. like many countries in the world, Nepal has to pay high price for globalization of trade and business. Companies in Nepal compete in a global environment without the facilities and infrastructure enjoyed by leading global players.

The Nepalese government adopted privatization policy in the mid-1980s due to the pressure imposed by the international agencies such as the IMF and the World Bank. However, due to the various structural constraints the government could not successfully implement privatization policy during the Seventh Five-Year Plan (1985- 1990). By 2008, the government had

already privatized 30 enterprises, and 36 are still in the government’s hand.

1. Bhrikuti Paper Factory Ltd. 19922. Harisiddhi Bricks and Tile Factory Ltd 19923. Bansbari Leather and Shoes Factory Ltd.

1992

With this more than 30 other public enterprises were privatized by 2008 A.D.

IN THE CONTEXT OF NEPAL

• Shifting the economy from Government control to the market

• Nepal adopted the policy of economic liberalization after the restoration of democracy in 1990

• With this various sectors such as monetary, financial, and legal have been reformed and public enterprises have been privatized.

Reduce Budget deficit Increase in competition Efficient use and Allocation of Resources The Resource Mobilization by the

Government in other sectors Increase in production

Mr. Shrestha, Rajendra Gopal, MR. Adhikari, Gyan Mani,Macro economics,Asia publication,2011

www.wikipedia.org http://www.darkseptemberrain.com/ideas/

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