BACKGROUND OF THE STUDY
It is wise to assert that no country in the would can sustain itself or survive without exchanging goods and services with other countries of the would. It is also wise to say that the economic growth and development of a country largely depends on how its imports exchange for its exports.
In view of the above assertions. I have deemed it very necessary to embark on a research work or project on the impact of foreign trade on the Nigeria economy”. This is an attempt and effect to draw the attentions of many Nigerian scholars and professionals to certain silent questions which may be relevant to knowing the impact of foreign trade on the Nigeria economy. These questions are:
STATEMENT OF THE PROBLEM
· How far has our country advanced in the production of goods with export quality?
· What are the things necessary for the industrial development of Nigeria?
· How much has Nigeria’s exports competed with her imports?
If we are able to give answers to these very relevant questions, and if we are able to identify the problem we encounter in the process, also if we are able to give solutions to these problems both, individually and collectively, then we will be able to solve these pressing problems which have hindered the overall economic growth and development of the Nigeria economy. And Nigeria will grow to become fully industrialized as many advanced countries of the world.
A developing economy as that of Nigeria is basically characterized by a high degree of subsistence production, with a very low application of modern technology. These have resulted into a very high volume of importation against manufacturing and tertiary industries are relatively low and the agro- based industries are common but, in low capacity.
Foreign trade should be highly encouraged but, there should be a balance of trade that is the aggregate imports should equal the aggregate exports, so as to have a balanced economy and good exchange rate.
OBJECTIVE OF THE STUDY
The objective of this will be summarized as follows:
1. To find out the effect of foreign trade on Nigeria economy.
2. The objective intends to compare the rate at which Nigeria import and exports goods and services.
3. To find out the impact of certain bilateral and multilateral trade relationship which Nigeria has made with other countries over the years.
4. To find out how foreign trade has helped Nigeria economy
5. To find out whether Nigeria has invested on industrial projects.
6. To find out how industrialization should be embraced by Nigeria in other to develop and in order to be able to compete in the international market.
SIGNIFICANCE OF THE STUDY
In as much as Nigeria has benefited from foreign trade, it has also felt a negative impact of foreign trade. This is because of the fact that, Nigeria is not industrialized, hence Nigeria imports much more than it exports. This has caused and advance balance of payment (B.O.P) This study will help to a large extent to
a. Boost the production capacity of small and medium scale industries. The resultant effect being the increase in output for increased export.
b. Initiate large –scale industrial projects
c. Spell out the need for more allocation of the economy
d. Increase the capacity utilization of small scale manufacturing industries hence, encouraging demand for foreign goods
e. Discouraging too much importation, especially, on consumer goods.
LIMITATION OF THE STUDY
The main limitation of the study of this project work is the failure or inability to gather adequate and current information concerning Nigeria’s foreign behaviour from the federal ministry of foreign affairs and the regional office of the central bank of Nigeria (CBN) .Again, the various changes in governments during military rule necessitated different foreign policies, thereby, resulting into changes in Nigeria’s foreign trade. All these made it difficult for the easy gathering of information for this project.
Finally, there were inadequate resources or fund available for transportation and other logistics for free movement during the research process.
DEFINITION OF TERMS
There are certain terms used in this work, which need to be briefly explained. They are:
· B.O.P. Balance of payment this entails the equilibrium of import and export receipts
· Boundary. A dividing line that separates countries.