Friday, March 17, 2017

Microeconomics (2068Q4) What are the push and pull factors behind individual decision of poor Nepali worker's to go to foreign countries for employment?

Why Nepalese workers go for foreign employment? Reasons:

1.     Unemployment
2.     Poverty
3.     Political instability and conflict
4.     To pay back loans
5.     Desire to earn money
6.     To become self-reliant
7.     Desire to see new places
8.     To learn something new
9.     To fulfill family expectations

Pushing Factors

There are a lot of factors that compel the Nepalese workers to go foreign countries for employment. Some major pushing factors are as follows:-
1.     Wage rate / low pay
2.     Job availability / No guarantee
3.     Family expenses
4.     Favoritism
5.     Local agents

6. Insecurity
People who wants to work in home land they are suffering from insecurity of business and themselves too. Fearfulness of  demand of donation by political parties, unions and other groups has made difficult to work. The basic needs for work environment hasn't prepared by the government. So its insecure to work in homeland.

7. Political instability and conflict
The unstable political situation has made critical situation for work environment. Nepal Bandas, strikes by different parties, unions, groups has inversely effect the chances of employment in home country.

8. Poverty
9. Lack of basic foundations for working environment
10. Poor law and order
11. Lack of employment opportunities
12. To pay back loans
13. Desire to earn money
14. To become self-reliant
15. Desire to see new places
16. To learn something new
17. To fulfill family expectations

Pulling Factors

1.     Better employment opportunities
2.     Attractive salary
3.     Earning money
4.     Job guarantee
Information from partners working abroad

Microeconomics (2068Q3) How do prices of (i) goods and services, (ii) labour, (iii) capital, (iv) entrepreneurship, and (v) foreign exchange interact with each other? Inter-relate it.

The factors of production such as labour, capital and entrepreneurship resources are inputs to produce output goods and services. The changes on foreign exchange impacts to goods and services, labour, capital and entrepreneurship resources too.

i. Goods and services:
Goods and services are the output of production of any firm. The ideal combination of inputs like as land (fixed input) and variable inputs (labour, capital, entrepreneurship) can product optimum output. So, the efficient production of goods and services are highly dependent of factors of production.

If market prices rise, incentives are created for producers to supply more to the consumers. If prices fall, there are incentives to produce less. Similarly, with consumers, high prices create incentives to buy less, while low prices create incentives to buy more.

ii. Labour:
It is one of an important production factor. Skillful labour are needed to maximize the production. The skills, knowledge and talents of people can be improved or made more productive through education and training. Labour is directed proportional to output as well as cost of production. So, optimum number of labours should used for production.

iii. Capital:
Capital consists of tools, equipment, machines and buildings that producers use to produce something else. High capital leads high production and less need of labours.

iv. Entrepreneurship:
Well combination of entrepreneurship in business improve in high production in low cost.

v. Foreign exchange:
 Besides among factor, foreign exchange also impacts on cost of output and production cost of any goods and services. If native currency is cheaper then cost of production will low and vice versa. Hence if cost of production is lower, then market price of goods and services will also low that means the goods can compete in the global market.

Microeconomics (2068Q2) Q2. On the basis of your understanding why private transporters' syndication/controlling is thriving in Nepal?


Over the last decade, the syndication has emerged as the one of the most problem in domestic transport system affecting the private sectors and consumers. This syndicate lobby is such a powerful that it has knocked down each and every attempts of government to abolish the anti-competitive practices. The private transporters syndicate association has control prices, keep big price margins, have greater authority and claim big piece of the pie in the market. In a free competitive market, syndicates are illegal and lethal (घातक). Moreover, in Nepal, Competition and Market Protection Act 2063 recognizes that syndication as an anti-competitive practice, defining it as illegal and punishable.

Reasons that private transporters syndication / controlling is thriving in Nepal

1.     The government can't forcefully implement our laws and practices upon the private transporters syndication.
2.      The government hasn't any measures to counterpart the syndication of private transporters by transporting petroleum and LP gas by govt. and other party's tanks.
3.     The government can't pierce the powerful nexus of private transporters syndicate and private transporters syndicate is also back supported by some politicians.

Possible efforts to solve syndication:

1.     Government first should make alternative of private transportation of petroleum and LP gas. Then government must present strongly with private transporter to draw them into law and order.
2.     Politician shouldn't look after their personal/organization benefits. They must be aware upon the citizens problem and the national problems.
Consumers and the associations of consumers should alert, aware and consolidate upon these issues and should fight against the syndication by boycotting their petroleum products.