Trend of Globalization in Nepal Geographically Nepal is a small country sandwiched between two giant countries India and China

but economically it has its own history. It was never under foreign tenet, though southern neighbor were colonized under English regime. It has relied on the mixed economic system and it has been pursuing an open trading regime since 1950s. Both the public and private sectors are equally active in economic activities. During the 30 years of period ruled by single-party system (Panchayat system) till mid 1980s, economic distortions and inefficiencies fueled high fiscal and external sector deficits and inflations. After restoration of multi party system in 1990, Nepal embarked on a more comprehensive policy of trade liberalization. The reforms were designed to accelerate the process of economic and social development by national production and improved access to foreign markets. Industrialization in Nepal with regular attention of government began only after the country opened its border to the outside world in 1951. This step could be considered as the first step towards the globalization. As a result agro processing industries, construction material production companies and export oriented carpet as well as garment industries in the different sectors came into the existence. The service sector is now recognized as a prominent place in the national economy. Few important service sector that contribute in Nepalese economy after 1990s are hotel, travel, tourism, banking, financial services, insurance, entertainment, education, health care, and consultancy. Tourism (fastest growing and world's largest industry) is one of the major industries of Nepal. Tourism industry has a significant role and place in the Nepalese economy. Likewise, financial sector is one of the most contributing sectors in the Nepalese service sector. The trade and service sector in Nepal has been playing a very influential role in imports, exports, and domestic market. The trading and service firms are major players in the total distribution chain. Some of the famous export products in the country are woolen carpets, ready-made garments, leather and leather products, pulses, handicrafts, tea and coffee, and indigenous paper products. In order to increase the contribution of industrial sector to the national economy through enhancement of industrial production and productivity, formerly said His Majesty's Government of Nepal has promulgated Industrial Policy in 1992. The policy is aimed towards increasing the contribution of industrial sector to the national economy by encouraging industrial production and productivity. The emphasis is given on the development of export-oriented industries and industries using local resources, more than this an important element of the policy is to reduce unemployment and under employment in the agriculture sector. Similarly, Foreign Investment and One-window Policy 1992 as a supplementary policy of Industrial Policy 1992, has been issued to build a strong and dynamic economy by generating additional opportunities for income and employment through expanding productive activities. It also aimed to increase participation of private and public sector to mobilize the internal skills and

resources. The major objective of export policy is to boost quality of exportable products, assortment the exportable products, utilization of existing manpower, and to export hydroelectricity of the country. Nepal government has endorsed and issued different acts and policy with amended version (if needed) for the smooth operation of industries in different sectors to create the opportunities of employment and income, to provide better health services and to uplift the living standard of Nepalese people as mentioned above. Its contribution is significant in employment generation and foreign exchange earnings. But the implementation of policy has been hampered by the political situation and movements, weak institutions and Maoist insurgency (around 10 yrs) which resulted brain drain, capital flight and youth migration.