The statement, Nepal is small but resembles the world means that Nepal has similar characteristics with the rest of the world.
As a country, Nepal is large but in terms of the rest of the world, it can be regarded as small. The country although just a small part of the world is the same as the world.
Most of the things and features that make up the rest of the world can be found in Nepal too. It shares similar climates and weather with some other parts of the world. It contains some other geographic characteristics like other parts also.
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