Foreign Employment: Class 10 Economics Notes | Unit 5 Chapter 4 SEE Guide Nepal

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Unit 5 Chapter 4 Foreign Employment

Class 10 Economics

Unit 5 Chapter 4 Foreign Employment

For SEE board exam preparation: Complete theoretical notes and fully solved exercise questions on Foreign Employment

Welcome to the complete study guide on Foreign Employment under Nepal’s Economy. This is Chapter 4 of Unit 5 for Class 10 Economics students in Nepal preparing for their SEE board exams.

Here you will find structured theoretical notes on the concept, importance, negative impacts, and measures to reduce the negative impacts of foreign employment — along with fully solved textbook exercises.

Explore our complete study list here: Class 10 Economics Notes.

1. Theoretical Concepts

Introduction

Foreign employment has become an important means of employment and income generation for developing countries like Nepal. As sufficient employment opportunities are not available within the country, the trend of people going abroad for work and income is continuously increasing. In this chapter, we will study the introduction to foreign employment, its importance, its negative impacts, and measures to reduce those negative impacts.

(A) Introduction to Foreign Employment

When a citizen of one country goes to another country to work for the purpose of employment and income generation, it is called Foreign Employment. A person going for such employment intends to return to their home country in the future. People go for foreign employment either because employment opportunities are not available at home, or because they wish to earn more even when some opportunities exist. Workers going abroad for employment must obtain labour permission (work permit), regardless of whether the work is in the public, private, or any other sector of the destination country.

With globalisation, the trend of Nepalis going abroad for work — to India and various developed countries around the world — has been steadily rising. Foreign employment has become one of the primary means of earning foreign currency for Nepal’s economy. The income received through foreign employment is called Remittance. In the context of Nepal, foreign employment has made a significant contribution to reducing poverty and improving the living standard of individuals and families. According to the Economic Survey 2081/82, as of Falgun 2081, Nepal has opened 111 countries for foreign employment. In recent times, the number of Nepali workers going for foreign employment has been increasing day by day.

(B) Importance of Foreign Employment

The importance of foreign employment in the context of Nepal can be presented in the following points:

(a) Improvement in Living Standard: Foreign employment has improved people’s standard of living. It has become a major source of income for low-income households. It has helped families meet their basic necessities such as food, clothing, healthcare, and education.

(b) Minimising Unemployment: Foreign employment has helped — at least to some extent — in reducing the unemployment problem. It has helped reduce the disguised or semi-visible unemployment that exists in the country’s agriculture sector. It has also provided employment opportunities to young people who could not find work in other sectors within the country.

(c) Improvement in Education and Health: Foreign employment has also brought improvement in the fields of education and health. As income increases for low-income families, their access to better education, healthcare, and medical treatment has improved.

(d) Increase in Saving and Investment: Foreign employment increases people’s savings and investment. A portion of the income earned through foreign employment can be continuously saved and then invested in productive sectors. This also supports capital formation and helps generate additional income in the future.

(e) Transfer of Technology and Skills: Foreign employment has helped in the transfer of technology and skills. People returning from foreign employment do not come back alone — they bring with them the new knowledge, skills, and technology they learned abroad. The possibility of using that knowledge, skill, and technology at home to develop entrepreneurship has increased.

(f) Earning Foreign Currency: Foreign employment has also contributed to the earning and accumulation of foreign currency reserves. The remittance received through foreign employment can be used to import goods and services, for study and travel abroad, and for foreign employment purposes itself. Remittances have increased the country’s foreign currency reserves, supplied the foreign currency needed to pay for imports, and helped improve the Balance of Payment.

(g) Access to Housing and Transportation: The income received from foreign employment has visibly increased the ownership of immovable property — including houses and land plots — among ordinary people. Access to means of transport and other physical assets has improved. It has helped make life easier and more secure by enabling the purchase of modern amenities and household goods.

(C) Negative Impacts of Foreign Employment

In the context of Nepal, foreign employment has established itself as a good alternative for employment. Because sufficient employment opportunities cannot be created within the country, most unskilled and semi-skilled Nepali workers have had to go abroad for work. These days, the attraction of Nepali workers towards countries like South Korea and Japan — destinations known for high wages — is growing. Foreign employment has provided the general public with access to improved living standards, healthcare, education, housing, and other services. However, it has equally significant negative and adverse impacts. Foreign employment has adversely affected the workers who go abroad, their families, society, and the mobilisation of resources and production. Some of the negative impacts of foreign employment are as follows:

(a) Economic and Human Insecurity: Foreign employment has increased economic insecurity. If the destination country faces political instability, a pandemic, or similar crises, thousands of workers who went for employment may become unemployed. In such a situation, economic problems such as being unable to repay loans taken from various sources or unable to manage household expenses can arise. Similarly, due to hazardous work in foreign employment, the number of workers dying in workplace accidents or becoming physically disabled has also been increasing.

(b) Effects on Children: Various studies and research have shown that children of families whose members have gone for foreign employment experience negative effects on their behaviour and socialisation. Children of parents who go for work abroad lack protection, love, and affection. When parents are not present during the growing and playing years of childhood, it negatively affects the psychology of children. Loneliness and depression among children has increased. A trend of children dropping out of school before completing their studies has also appeared.

(c) Family Disagreement: Foreign employment has increased misunderstanding within families. When one of the spouses — husband or wife — goes for foreign employment, it leads to family imbalance, mutual accusations, growing doubts and suspicions, lack of trust, and in some cases even divorce. Such misunderstandings or disputes within the family damage the family environment. In some cases, children may be left without parental care.

(d) Effect on Mental Health: Foreign employment has adversely affected the mental health of workers. Going to a new place for work after leaving one’s own family leads to homesickness; not receiving the wages one expected reduces work motivation and enthusiasm; and having to endure discrimination and mistreatment can all have adverse effects on mental health.

(e) Shortage of Workers in the Home Country: As the number of people going for foreign employment continuously grows, the supply of workers within the country may decline. In particular, there may be a shortage of workers in the agriculture sector. In recent times, not only unskilled and semi-skilled workers but also skilled workers from Nepal are increasingly going abroad. This brain drain of skilled, capable, and able workforce can create a situation of worker shortages even in the industry and service sectors.

(f) Consumerism Culture: A large portion of the income received through foreign employment is spent on the consumption of goods and services. The tendency to imitate others, spend excessively on luxury items, and waste money has increased. A consumerism culture has developed in which people prefer to enjoy current consumption rather than invest in productive sectors.

(D) Measures to Reduce the Negative Impacts of Foreign Employment

Some measures that must be adopted to reduce the negative impacts of foreign employment are as follows:

(a) Labour Agreement: A labour agreement is the primary condition for foreign employment. The government must control the practice of sending workers to countries other than those with which a labour agreement exists. Through embassies and labour counsellors, the government must coordinate and facilitate with employer countries regarding the rights, interests, and entitlements of Nepali citizens in foreign employment. A system must be established whereby permission to go for employment is granted only after the prospective worker has acquired the necessary language skills, work-related competencies, and training for the destination country.

(b) Labour Permit and Contract: Anyone going for foreign employment must mandatorily obtain a labour permit and a contract. They must verify whether the destination country is on the approved labour permit list. All required documents — including visa, insurance, and health examination reports — must be prepared and a labour permit must be obtained from the Department of Foreign Employment before going abroad. Before going for foreign employment, the worker must carefully study everything mentioned in the contract — including the destination country, the type of work, the benefits and services they will receive, working hours, and overtime provisions — and sign or give consent only when fully satisfied. A photocopy of the contract must be kept by the worker themselves.

(c) Document Security and Contact with Supporting Agencies: Anyone wishing to go for foreign employment must keep all necessary documents securely. It is also essential to have the contact numbers of supporting agencies. After arriving in the destination country, if any doubts or difficulties arise, one must contact relevant bodies such as the embassy or migrant centre.

(d) Safe Working Environment: Anyone going for foreign employment must be aware of the measures to keep themselves safe. All rules and laws applicable at the workplace must be strictly followed. In situations where the risk of accident is high, one must be knowledgeable about emergency risk measures. Safety equipment must always be used when operating tools, machines, and instruments.

(e) Harmony and Trust: A person going for foreign employment must maintain family harmony and trust. Regular contact must be kept with parents and children. This strengthens family closeness and creates an environment of trust by removing doubts and suspicions. The family at home must also treat the person abroad with love, goodwill, and affection. The money sent home from abroad must be used wisely. In the absence of one parent, the other must pay special attention to managing the education, health, and nutrition of the children.

(f) Proper Utilisation of Remittance: The income received from foreign employment must not be wasted on unnecessary expenses — it must be used only for essential needs. The habit of saving — even a small amount — must be developed. Savings provide investment opportunities and help in building a secure future. The tendency to imitate others must be discouraged, and the habit of investing in productive sectors must be developed. By using small amounts of money to purchase primary shares, opening savings or fixed deposit accounts in children’s names and regularly depositing, taking insurance, or using such funds to start a small business or enterprise — there would be no need to go abroad again for income in the future.

2. Exercise (With Solutions)
Very Short Answer Questions [1 Mark]

a. Define foreign employment.

Answer: When a citizen of one country goes to another country to work for the purpose of employment and income generation — with the intention of returning home in the future — it is called Foreign Employment.

b. What is the income received from foreign employment called?

Answer: The income received from foreign employment is called Remittance.

c. How many countries have been approved for foreign employment so far?

Answer: According to the Economic Survey 2081/82, as of Falgun 2081, the Government of Nepal has approved a total of 111 countries for foreign employment.

d. Write any two benefits Nepal can gain from foreign employment.

Answer: Two benefits Nepal can gain from foreign employment: 1. Earning foreign currency (remittance). 2. Reduction of unemployment within the country.

e. Give one example of human insecurity in foreign employment.

Answer: A worker dying in a workplace accident or becoming physically disabled due to hazardous work in foreign employment is one example of human insecurity in foreign employment.

f. What is consumerism culture?

Answer: The tendency to waste income earned from foreign employment on the consumption of luxury goods and services by imitating others — rather than investing it in productive sectors — is called Consumerism Culture.

g. What documents must a person wishing to go for foreign employment keep securely?

Answer: A person wishing to go for foreign employment must keep the following documents securely: visa, insurance, health examination reports, labour permit, and the contract paper.

h. Give one example of the proper utilisation of remittance.

Answer: Using small amounts of remittance to purchase primary shares, or starting and running a small business or enterprise, is one example of the proper utilisation of remittance.

3. Short Answer Questions [5 Marks]

a. Write the importance of foreign employment in point form. 5 Marks

Foreign employment is of great importance for a developing country like Nepal. Its importance can be written in the following points:

— Improvement in Living Standard: It has helped raise the living standard of low-income families by fulfilling their basic necessities.

— Minimising Unemployment: It has provided employment opportunities for youth who could not find work domestically and for those invisibly unemployed in the agriculture sector.

— Earning Foreign Currency: The remittances received through foreign employment have increased the country’s foreign currency reserves and helped finance import payments.

— Transfer of Technology and Skills: New knowledge, skills, and technology learned abroad are brought home by returnees, helping develop entrepreneurship within the country.

— Access to Education, Health, and Housing: Remittance income has increased the general public’s access to better education, medical treatment, and home ownership.

b. Present any five negative impacts of foreign employment. 5 Marks

Five negative impacts of foreign employment are as follows:

1. Economic and Human Insecurity: When instability arises in the destination country, workers may face unemployment, and the risk of death or disability from hazardous work at the workplace is always present.

2. Effects on Children: Without the presence of parents, loneliness and depression among children increases, and a tendency to drop out of school midway has been observed.

3. Family Disagreement: When a husband or wife goes abroad, doubts and suspicions grow within the family, leading to disputes and even divorce.

4. Shortage of Workers at Home: As young and skilled workers leave the country, a severe shortage of workers has been created in Nepal’s agriculture, industry, and service sectors.

5. Consumerism Culture: A culture of spending hard-earned money on luxury and wasteful consumption — rather than productive investment — has developed in society.

c. Describe any two measures to reduce the negative impacts of foreign employment. 5 Marks

Two key measures to reduce the negative impacts of foreign employment are as follows:

1. Thorough Study of Labour Permit and Contract: Before going abroad, a mandatory labour permit must be obtained from the Department of Foreign Employment. The conditions stated in the contract — regarding the type of work, wages, working hours, and overtime provisions — must be read carefully, and the document should be signed only when fully satisfied. A copy of the contract must be kept securely by the worker themselves.

2. Proper Utilisation of Remittance: The money earned and sent home from abroad must not be wasted on luxury goods and consumerism. Instead, the habit of saving, investing in children’s education, and channelling funds into productive areas such as entrepreneurship or shares must be developed — so that the compulsion to go abroad again in the future is eliminated.

4. Long Answer Questions [8 Marks]

a. Why is foreign employment necessary in the context of Nepal? Explain on the basis of its importance. 8 Marks

Because sufficient employment opportunities and industries are not available within the country, foreign employment has become a primary and often unavoidable option for income generation for the citizens of developing countries like Nepal. Foreign employment has become almost indispensable for reducing poverty and keeping the economy functioning. Its necessity and importance can be explained on the following bases:

1. Solution to the Unemployment Problem: Every year, hundreds of thousands of young people enter Nepal’s labour market but cannot find work domestically. Foreign employment has provided these young people with job opportunities, thereby preventing economic crisis and social unrest that could otherwise occur in the country.

2. Primary Source of Foreign Currency: Nepal’s economy is heavily dependent on remittances. The foreign currency flowing in through foreign employment is what sustains the country’s import trade and helps improve the Balance of Payment situation.

3. Poverty Reduction and Improvement in Living Standard: The purchasing power of families with members in foreign employment has increased. They have been able to access quality education, better healthcare, and secure housing — contributing to an overall reduction in the national poverty rate.

4. Savings, Investment, and Skill Transfer: The income earned by working abroad is being saved and invested in businesses and enterprises back home. Moreover, the modern technology and work competencies learned abroad, when brought back, have a long-term positive effect on the country’s development.

Therefore, until sufficient industrialisation takes place within the country, foreign employment is extremely necessary to sustain Nepal’s economy and improve citizens’ lives.

b. List the negative impacts of foreign employment and describe measures to reduce them. 8 Marks

Foreign employment has not only provided benefits — it has also caused serious negative impacts on Nepali society and the economy.

List of Negative Impacts of Foreign Employment:

— Economic and human insecurity (workplace accidents and deaths).

— Negative effects on the psychology and upbringing of children.

— Increase in family misunderstanding, disputes, and cases of divorce.

— Mental health problems among workers (depression, stress).

— Severe shortage of young workers in domestic agriculture and industry.

— Growth of a consumerism and luxury-spending culture in society.

Measures to Reduce Negative Impacts: To reduce these serious impacts, the following measures are necessary:

1. Labour Agreement and Skills-Based Training: The government must send workers only to safe countries with which labour agreements exist. Before departure, workers must be given complete training in the destination country’s language, rules, and work requirements.

2. Document and Contract Security: Workers must keep their visa, passport, insurance, and a copy of their contract safe. If any problem arises after reaching the destination country, they must immediately contact the Nepali embassy or a supporting agency.

3. Knowledge of Safe Working Environment: Workers must be well aware of the safety standards to follow at the workplace and emergency rescue procedures before departure. Safety equipment must be mandatorily used when doing hazardous work.

4. Family Harmony and Trust: Regular communication and contact must be maintained between the person abroad and their family at home. Both sides must reassure each other, and the parent at home must pay special attention to the care of the children.

5. Proper Utilisation of Remittance: The hard-earned money sent home from abroad must not be wasted on unproductive areas such as imitation spending and luxury. Instead, it must be saved and invested in productive sectors like business, entrepreneurship, or shares — so that in the long run the person can become self-reliant at home and not be compelled to go abroad again.