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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share ofgross domestic product (GDP). Industrialization, advancedtransportation, multinational corporations, offshoring andoutsourcing all have a major impact on world trade. The growth of international trade is a fundamental component of globalization.An absolute trade advantage exists when countries can produce a commodity with less cost per unit produced than could its trading partner. By the same reasoning, it should import commodities in which it has an absolute disadvantage. While there are possible gains from tradewith absolute advantage, comparative advantage that is, the ability to offer goods and services at a lower marginal andopportunity cost extends the range of possible mutually beneficial exchanges. In a globalized business environment, companies argue that the comparative advantages offered by international trade have become essential to remaining competitive.Globalization(orglobalization) is the process of international integration arising from the interchange ofworld views, products, ideas, and other aspects of cultureput in simple terms, globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation andtelecommunications infrastructure, including the rise of thetelegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. Though several scholars place the origins of globalization inmodern times, others trace its history long before the European age of discovery and voyages to the New World. Some even trace the origins to the third millennium BCE. In the late 19th century and early 20th century, the connectedness of the world's economies and cultures grew very quickly.The term globalization has been in increasing use since the mid-1980s and especially since the mid-1990s. In 2000, theInternational Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital andinvestment movements, migration and movement of people and the dissemination of knowledge. Further, environmental challenges such as climate change, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics,socio-cultural resources, and the natural environment.
1.2 STATEMENT OF THE PROBLEM
There are so many problems facing international marketing all over the world in general and Nigeria in particular from the recent happenings, we can decipher that those problems have been preventing international marketing from optimizing its goals of earning sufficient foreign exchange which enhances the per capital income and national reserve of the country.
When we look around the world, we can see the fast changing economic, political and social climate every country (nation) wants to succeed, to be heard, to be seen, to be involved in one reasonable thing or another, in order to succeed. We can see the former union soviet socialist Republic (USSR) disintegrating towards capitalistic reforms, south North Korea going towards industrial cum scientific revolution, South African founds transitional programme that will achieve good will and mutual understanding with the outside world and a lot of others. No matter how large or small, however, every nation in the world, including our own, must take very much into account what its own limited resources, it must gain their co-operation. There is needed to get other nations to know more about us, what we are doing and what we have to offer. In the face of the global economy today, it is on record that Nigeria, is rated to be thirteenth (13th) poorest country in the world the great “Giant of Africa most foreign countries are scared to do business with Nigerians. Again, we have the current “419” syndrome which is making us look dreadful to our foreign visitors and prospective business associates. The political instability in the country does not help matters. According to recent report by Sunday mail “overseas suppliers have reduce level of shipments of automotive component to Nigeria customers as far has gripped them that the present political crisis can lead to civil unrest.
1.3 OBJECTIVE OF THE STUDY
The main objective of this study is to evaluate the impact of international trade on the economic development of Nigeria.
The specific objectives of this research work include the following:
1. To determine the contribution of international trade in the economic development of Nigeria.
2. To examine the relationship between Nigerian economic growth and international trade.
3. To examine the problems of international trade in Nigeria.
4. To proffer possible solutions to the identified problems.
1.4 RESERCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: there is no contribution of international trade in the economic development of Nigeria
H1: there is contribution of international trade in the economic development of Nigeria
H02:there are no problems of international trade in Nigeria
H2:there are problems of international trade in Nigeria
1.5 SIGNIFICANCE OF THE STUDY
This study is intended to examine the impact of international trade on the economic growth of Nigeria. It is important to point out that on completion of this research work by the researcher, it would be of immense significance to the following:
RESEARCHERS: Other researchers on the same or similar topic would find this work helpful as it will form a base of review of related literature and also a stepping-shine for future researchers.
ECONOMY: This work will help to improve the national output and thereby national income. This is because of improvement in the international market and as well as the overall success of Nigerian Economy, which will be achieved through adequate utilization and management of this research work.
CORPORATION: The standard of corporations will be increased as a result of the knowledge acquired from this research work.
SHAREHOLDERS: The wealth of the shareholders will be maximized due to the adherence to the recommendations in this research work.
1.6 SCOPE AND LIMITATION OF THE STUDY
This research work cannot possibly treat all aspect of international trade because the field is simply too wide so only those relevant to the research study were dealt with as per the impact of international trade on the economic development of Nigeria. The researcher will restrict his work to selected financial institutions in Onitsha metropolis. Any other reference to materials, place, items, activities, periods is just for purpose of clarity and vivid understanding of the topic and not within the scope. The researcher encounters some constrain which limited the scope of the study;
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 DEFINITION OF TERMS
INTERNATIONAL: International mostly means something involving more than a single country. The term international as a word means involvement of, interaction between or encompassing more than one nation, or generally beyond national boundaries.
INTERNATIONAL TRADE: International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world.
ECONOMIC: Economics is a social science that studies how societies manage their scarce resources. Broadly, economics examines the production, distribution, and consumption of goods and services
ECONOMIC DEVELOPMENT: Economic development is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study
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