UNIT:- TWO MACRO ECONOMIC ENVIRONMENT

The word ‘Macro’ is derived from the Greek word ‘Makros’ which means ‘Large’ and therefore macro
economic is concerned with economic activity in the large. It analyses the behavior of the whole economic
system in totality.

Dimension of the Economy

Dimension of an economy refers to the components of economy of a country. It is blend of various

factors which are as follows:-

 Income level

 Income Distribution

 Growth of Economy
Development of agricultural, industrial and service sectors

Level of employment

Balance of payment

Rate of inflation

Urbanization

Globalization and others

The dimension of economic may be

1. The economic dimension

2. The socio-economic

3. The industrial and agricultural dimension

4. The economic development dimension

Major problems and challenges facing Nepalese economy

There are three important sectors of the Nepalese economy which are as follows:-

Agricultural sector

Industry sector

Service sector
Overall Problems and Challenges of Nepalese economy

Some of the problems and challenges of Nepalese economy are given below;

 Lack of good governance

 Instable political system

 Higher cost

 Management problems of organization

 Unhealthy competition

 Inadequate infrastructure

 Small market size

 Low productivity

 Land locked country

 Problem of investment and finance

Employment Trends and Labor Market Issues

 Employment Trends

1. There is less employment opportunities.

2. The people are less interested on their traditional family business.

3. There is the practice of open competition and reservation in Government Agency while selecting the
employees.

4. Educated women are seeking out for employment opportunities.

5. Migrating to abroad for searching employment opportunities.

6. There are few establishment business houses in Nepal and the top management position has taken by their
own family members.
7. There is the practice of Nepotism and favoritism.

8. There is lack of fairness and transparent selection.

9. Out sourcing

 Labor Market Issues

1. There is large number if labor force remains unemployed, semi employed and seasonal employed but less
number of skillful labors.

2. Lack of performance based pay and incentive system.

3. Absence of sound labor relation.

4. Labor market is highly politicized.

5. Practiced of minimum wages system.

6. Practiced of social inclusion in labor market.

7. Most of the top level management/ highly skilled manpower are imported from India labor
market.

Thank You!!