StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Impact of Foreign Investment on Nigerias Economy - Dissertation Example

Cite this document
Summary
From the paper "The Impact of Foreign Investment on Nigerias Economy" it is clear that political instability and lack of governance are still big problems in Nigeria. Many foreign investors are reluctant in investing in Nigeria because of their concerns about political and social problems…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
The Impact of Foreign Investment on Nigerias Economy
Read Text Preview

Extract of sample "The Impact of Foreign Investment on Nigerias Economy"

Download file to see previous pages

Nigeria is the most heavily populated country on the African continent. It is one of the rapidly developing economies in Africa along with South Africa. Moreover, Nigeria is blessed with immense oil and other natural resources. However, technological advancements in Nigeria are not so good. As a result that, it is incapable of exploiting natural resources properly. Being the most rapidly emerging economies in the world, India and China can help Nigeria immensely in streamlining its economic growth.

Plenty of Indian and Chinese companies are currently operating in Nigeria in different sectors such as agriculture, oil, mining, refining, automobile manufacturing, banking, retailing, etc. These countries are helping Nigeria to exploit its natural resources judiciously. This paper analyses the impact of foreign investment (with reference to China and India) on Nigeria’s economy and how Nigeria as a developing nation can promote Foreign Direct Investment (FDI). Table of Contents 1.0 Introduction Globalization is a process through which the activities done in one part of the world affects people in other parts of the world (Reich 1998: 5).

According to Lieber and Weisberg, globalization helps people all over the world in the creation of a stronger and stable world (Lieber and Weisberg 2002: 274). Huge changes are taking place in this world after the introduction of globalization and liberalization. Some of the underdeveloped economies such as India, and China are currently emerging as the most rapidly developing economies in the world, mainly because of their ability to exploit the opportunities provided by globalization. These countries were successful mainly because of their readiness to open up their domestic market for foreign direct investments.

The importance of free market and private enterprise in promoting economic globalization was explained by many scholars (Ghai1997: 1) The economy of the world keeps improving and keeps becoming more integrated as most countries want to play/contribute to a role in the economy of the 21st century. Globalization keeps increasing as countries try to identify their competitive advantages and use their available resources to secure profits for themselves. Trade has now been expanded compared to the past, services and cross-border flows of financial resources and people.

Countries all over the world have realized that domestic resources alone may not help them much in streamlining economic growth. As a result of the majority of the countries have already opened up their economies and liberalized the rules and regulations to attract more and more foreign direct investments or FDI. FDI is the investment of foreign capital in domestic goods and services. According to Dicken (2007, p.36), direct investment is a kind of investment intended to gain control over the activities of another firm.

FDI is the investment across nations. “The flow of FDI and portfolio investments across countries generates a very large amount of investment incomes going in the opposite direction” Letto-Giles 2002: 27). On the other hand, Adina (2011) mentioned the training effect of FDI. In her opinion, FDI may help a country to modernize techniques and technologies, increase production and supply of goods, improve quality and competitiveness, create new jobs and grow the quality of life (Adina 2011: 148).

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Impact of foreign Investment(with reference to china and india) on Dissertation”, n.d.)
The Impact of foreign Investment(with reference to china and india) on Dissertation. Retrieved from https://studentshare.org/business/1483473-the-impact-of-foreign-investmentwith-reference-to
(The Impact of Foreign Investment(with Reference to China and India) on Dissertation)
The Impact of Foreign Investment(with Reference to China and India) on Dissertation. https://studentshare.org/business/1483473-the-impact-of-foreign-investmentwith-reference-to.
“The Impact of Foreign Investment(with Reference to China and India) on Dissertation”, n.d. https://studentshare.org/business/1483473-the-impact-of-foreign-investmentwith-reference-to.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Impact of Foreign Investment on Nigerias Economy

MTN Nigeria Managerial Approach

sOverall, MTN Nigeria claims to have a robust three-dimensional approach to CSR (Goodluck, 2010): Good corporate governance Value-addition to society through their products and services Corporate social investments through MTN Foundation Their initiative, through MTN Foundation, has made a huge impact and has become a model for corporate citizenship, according to their own version (Goodluck, 2010)....
29 Pages (7250 words) Assignment

Nigerian Oil Industry in International Trade

The economy of the nation is highly dependent on its oil industry.... It is observed that this sector contributes maximum amount in the economy of the nation.... In the era of international business, economic as well as social importances of international trade have played their role as the deriving theories influencing the international trading business (The economy Watch, 2010).... The Nigerian oil industry is facing instability with respect to declining condition of Niger delta adversely affecting the national economy and the sustainable growth of the related industry....
5 Pages (1250 words) Essay

Multinational Corporation in Nigeria: Shell Petroleum Development Company

This paper will discuss the impact of an SPDC to the economy of Nigeria.... Like any other oil company, SPDC influences the Nigerian economy both in the positive and negative sense (Ozoigbo & Chukuezi, 2010).... Impacts of SPDC on the economy of Nigeria Multinational's impact on the economy of a country can never be overemphasized.... This partnership between SPDC and the Nigerian government has impacted on her economy both positively and negatively....
7 Pages (1750 words) Coursework

What Are The Effects of High Oil Prices On The Economy of Oil Exporter, a Case Study of Nigeria

The oil prices and how they affect the economy of Nigeria has been discussed.... Oil has made Nigeria a rich nation and the economy is growing fast.... At present, foreign companies are exploiting the oil reserves.... This paper tells that oil has placed Nigeria as one of the top ten oil producers in the world....
20 Pages (5000 words) Essay

Profitability of Microfinance Institutions in Nigeria

The adage that ‘the rich keep getting richer, while the poor keep getting poorer' rings true today throughout much of the globe.... In consideration of this reality, it is.... ... ... As many of these individuals reside in countries that lack the financial fortitude to accomplish this feat on their own, microfinance organizations are increasingly Such organizations are able to grant small micro loans to members of the lower class who can both demonstrate a need and a means to pay back the loan....
200 Pages (50000 words) Thesis

Port Privatisation in Nigeria

A weak and slow developing economy with a weak structure led to port reforms that brought about port privatisation (Obed & Emeghara, 2012).... Economic development is the progress in the economy which usually involves the change of policies, adoption of new technologies and improvement of living standards....
13 Pages (3250 words) Essay

The Drivers of Chinese Businesses Strategy for Expansion into Nigeria

On the other hand, Nigeria benefits when the Chinese involve themselves in foreign direct investment.... The broad purpose of the research proposal "The drivers of Chinese businesses strategy for expansion into Nigeria" is to explore the drivers of Chinese business strategy for expansion into Nigeria....
4 Pages (1000 words) Dissertation

Multinational Corporation Expansion: Citigroup Company Investment in Nigeria

This is because the country has a promising economy owing to its relative political and macroeconomic stability.... "Multinational Corporation Expansion: Citigroup Company investment in Nigeria" paper argues that the company should be improving its corporate governance and transparency.... hese portray the monetary and macroeconomic relations between investment partners.... The market is affected by the international and local market forces that impact on the demand of the company's services (Hill, 2009)....
6 Pages (1500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us