CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

Globalization could simply be described as the integration of national economies through trade investment and financial interaction. The concept of globalization began to thrive shortly after the end of Second World War when the allies led by the united State decided to support a world wide opentrading and investment system. The collapse of the Soviet Union,the fall of the Berlin wall and anti-climatic end of the cold war aided the emergence of the ascendancy of the globalization trend. This resulted in the hurried marketizationand democratization of the former soviet states of Eastern Europe and selective absorption into mainstream western Alliance system of the hitherto to communist States. Beyond this however, globalization aided by supersonic transformation in information technology integrated the world through pushof free market economy as well as liberal democracy. (Olaleye, 2002).

Globalization has increased the volume of trade by the developing nations in general and that of Nigeria in particular. The continuous growth in. imports and exports is seen as evidence that countries are becoming independent on global markets.

Globalization has also brought about revelation, in technology. In fact one of the propelling agents is technology. There have been developments of new and improved method of doing traditional things otherwise called technological progress. The Banking sector more than any other sector is the hardest hit (Olajide, 2002).

1.2    STATEMENT OF THE PROBLEM

There is wide spread of trade around the globe thereby increasing the level of competition in the manufacturing industry globally. The domestic manufacturing industry in Nigeria is faced with the problem of competing with the developed countries who through globalization continue to improve and advance on daily basis in innovationand in information technology. The technological environments are moving at supersonic speed, Computers, Telephones, Televisions and wireless forms of communication now are merging into telecommunication both to create multimedia products and allow individuals in the developed world to communicate with others, hereby improving manpower skills, improving in method of production, efficiency and effectiveness of business organization. Globalization has helped these developed countries to achieve quality, quantity, price, durability, manpower skill, and etc. If the domestic manufacturing industries fails to heed the lessons of globalization it will be gradually whipped into line by the forces unleashed by globalization.

Therefore, it is upon this premise that a study of this nature is necessary in order to identify the effect of all afore mentioned factors on the development of domestic manufacturing industries in order for them to be able to compete globally.

1.3    OBJECTIVES OF THE STUDY

The main objective of this study is to examine the effect of globalization on the development of domestic manufacturingindustry with Dangote Flour Mills PLC as a focus. This, in order to achieve the above objectives, the following specific objectives will be our guide.

1.       To examine whether the development of domestic manufacturing industries have effect on prices of goods and services?

2.       To examine whether increase in the level of competition with globalization have effect on prices of goods and service?

3.       To examine whether organization output' in, domestic manufacturing industry affect price?

4.       To examine whether quality plays a role in the acceptability of goods and services of domestic manufacturing companies globally?

1.4    RESEARCH QUESTIONS

In order to achieve the objectives of this study, the following are the research questions:

1.       Does the development of domestic manufacturing industries have effect on prices of goods and services?

2.       Does increase in the level of competition with globalization have effect on prices of goods and service?

3.       To what extent does organization output in domestic manufacturing industry affect price?

4.       To what extent does quality plays in the acceptability of goods and services of the domestic manufacturing companies globally?

1.5    RESEARCH HYPOTHESES

To provide, answers to the research-questions the following hypotheses will be tested.

1.       Globalization has impact on the performance of domestic manufacturing industries in Nigeria.

2.       The development of domestic manufacturing industries has effect on prices of goods andservices.

1.6    SIGNIFICANCE OF THE STUDY

A study of this kind is expected to make theoretical and practical contributions to manufacturing companies in Nigeria. Thus, Nigeria is the most populous black nation in the world and the effect of globalization on the country could be generalized for other countries in the sub-Sahara Africa, so the effect of globalization process on Nigeria has a determinant effect on other countries in Africa.

Also, it is hoped that this stud' will provide manufacturing companies an incite on how organizations, can cope in the ever-changing, turbulent business environment in developing countries and how organization activities can be organized in order to cope effectively with opportunities and trend in the business environment.

Also, how to overcome industrial or economic recession changes in social variables increase competition and technological advancement. In addition, it is hoped that this study will help the policy makers to see need to invest more in technology in a nation like Nigeria that encourages small and medium enterprises scale (SMEs).

This study is also expected to prove to scholars and imminent researchers, that it is possible to manufacture quality product in a developing nation like Nigeria with Globalization.

Furthermore, for Business administration student who aspires to become Managers manufacturing industries, itis expected that this study win expose them on how products can be advertised and distributed in the global village without stress and with less cost, thanks to globalization

1.7    SCOPE AND LIMITATIONS OF THE STUDY

The basic premise on which this study is based is the effect of globalization on the development of domestic manufacturing industries in Nigeria with DangoteFlour Mills Plc as a case study. The study covers representative numbers of the generality of the workers in the organization. No special consolidation is given to sex, age and Nationality in collecting data from the respondents.

The first set-back encountered in the course of carrying out this research is the time limitation. The Nigeria academic environment has been largely infected by irregularities and uncertainties and as such abnormal academic calendar.

Another key limitation was that of finance. Since I do not have a computer system. of my own I haveto pay to get the research work typed out. Furthermore the fear of insincere response on the part of the respondents even when a questionnaire is administered on them.

1.8    DEFINITION OF BASIC TERMS

Globalization: Globalization could simply be described as the integration of national economies through trade investment and financial interaction

Manufacturing Industries: A manufacturingindustry is an industry where goods are produced and they prepare what is known as manufacturing account. A manufacturing account is basically a list of cost relating to the production of goods (i.e. factory relation expenses).