Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Management (BBM)
Course Description
:This course consists of introduction to Foreign Trade, Nepal’s Foreign Trade Policy, Export and Import Procedures, International Trade Organizations, Trade Financing and Payment Methods, Foreign Exchange Management, Logistics and Supply Chain in International Trade, and Contemporary Issues in Foreign Trade. Learning Outcomes By the end of this course, students will be able to: Understand the fundamental concepts and significance of foreign trade in national and global contexts. Analyse Nepal’s trade policies, frameworks, and institutional mechanisms. Describe the procedural, legal, and documentary requirements for export and import operations. Evaluate the roles of international and regional trade organizations relevant to Nepal. Identify and apply different trade financing and international payment methods. Understand foreign exchange mechanisms and regulatory provisions affecting trade in Nepal. Explain logistics, supply chain operations, and terms in the context of international trade. Know contemporary issues impacting foreign trade such as protectionism, trade disruptions, and globalization, with a focus on Nepal.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Introduction to Foreign Trade
- Definition and significance of foreign trade
- Differences between domestic and international trade
- Globalization: concept, types, drivers and impact on foreign trade
- Nature of Nepalese foreign trade
- The role of foreign trade in economic development of Nepal
- Trend and major problems of Nepalese foreign trade.
Unit 2. Nepal’s Foreign Trade Policy
- Historical development of Nepal’s trade policy
- Current trade frameworks: Nepal Trade Integration Strategy (NTIS), trade policy 2015 and updates
- Export promotion measures and government incentives
- Role of the Ministry of Industry, Commerce and Supplies, and Department of Customs in foreign trade operations.
Unit 3. Export and Import Procedures
- Tariff and non-tariff barriers and issues
- Procedures for Nepalese exporters and importers
- Documentation requirements
- Use of ASYCUDA World system
- Customs clearance processes at major border points and dry ports.
Unit 4. International Trade Organizations
- World Trade Organization (WTO) and Nepal’s accession: positive and negative impacts
- United Nations Conference on Trade and Development (UNCTAD)
- Concept and need of regional economic integration/cooperation
- Forms of regional integration
- Regional trade agreements: SAFTA, BIMSTEC and their impact on Nepal.
Unit 5. Trade Financing and Payment Methods
- Concept, need and tools of trade financing, Letters of credit and banking systems in Nepal
- Bills of exchange and international payments
- Role of Nepal Rastra Bank and export credit insurance schemes.
Unit 6. Foreign Exchange Management
- Exchange rate mechanisms and Nepal’s fixed exchange system with INR
- Foreign Exchange Act and NRB guidelines
- Risk management in foreign exchange transactions.
Unit 7. Logistics and Supply Chain in International Trade
- Transportation modes and logistics challenges in landlocked Nepal
- Transit through Indian ports and use of dry ports
- Application of Incoterms in Nepalese trade
- Warehousing and inventory management.
Unit 8. Contemporary Issues in Foreign Trade
- Trade barriers and protectionism affecting Nepal
- Global trade disruptions and their impact ( geopolitical tensions)
- Digital transformation and its effects on Nepalese businesses
- Trade imbalances and export diversification strategies.
Suggested Readings:
Paul, J. International business. McGraw Hill Education. Cherunilam, F. International trade and export management. Himalaya Publishing House. Jain, T. R., & Ohri, V . K.Management of foreign trade. VK Global Publications Pvt. Ltd. Ministry of Industry, Commerce and Supplies. Nepal Trade Integration Strategy 2016. Government of Nepal. https://moics.gov.np/ Trade and Export Promotion Centre. Nepal foreign trade statistics 2075/76. https://www.tepc.gov.np Nepal Law Society. Landlocked states and access to sea. Kathmandu.