The Problem of Financing International Trade in Nigeria
CHAPTER ONE
PURPOSE / OBJECTIVE OF THE STUDY
The purpose of this study include the following:
- To examine international cash flow in trade.
- To analyze the risk factors in international cash flow.
- To trace the major problems of financing international trade.
- To have a look at trade restrictions and government polities and its effects on trade.
- To overview SAP in non-oil financing sector.
- To find the major important of international trade.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
According to kemp DS of April (1990) Price are link to the various economic factors irrespective of the convertibility of national currencies.
Secondly international mobility of capital resources are linked with interest rate on credit facilitates financial assets and investment by permitting countries to finance current account in balance of payment this link provided channel of international transmission of inflationary disturbance of international financial management in 10, October (1994) the reduction in normal domestic rate of interest. Irrespective of increase in inflation rate and how foreign interest rate would include capital outflow.
Foreign investment and foreign exchange especially through deflation of external reserve and where the reduction heads relatively lower real interest rate compared with the interest rate prevailing outside the country.
According to International Corporation one is being an appraisal of a given project by not expecting cash inflows attendants to the project the determination of the flows in the international firms’ creation.
However, cash flow in the international setting is more complex than the typical domestic project analysis it become ever more pertained when an economy is open.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the problem of financing international trade in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the problem of financing international trade in Nigeria
Summary
This study was on the problem of financing international trade in Nigeria. Three objectives were raised which included: To examine international cash flow in trade, to analyze the risk factors in international cash flow, to trace the major problems of financing international trade, to have a look at trade restrictions and government polities and its effects on trade, to overview SAP in non-oil financing sector and to find the major important of international trade. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from CBN in Lagos. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
In this effect it does not entail contracting many problems to trade; they are also analysed taking into consideration import of trade on general welfare.
He incentive fashioned out by the federal government of Nigeria to help attract investors into this sectors much welcomed.
However the various constraints especially the issue of this body in all he trade especially with regards to the numerous restrictions well also analysed it is the opinion of numerous restrictions in trade by countries will not only affect industries.
There is no gain saying the fact that proper consideration and implementation of the above recommendation will not only see the successful oration of international trade but also help forestall the problem of international trade.
Recommendation
The high of findings and limitation of this study it is necessary to offer some recommendations and suggestion which may prove invaluable not only to the future researchers but also to the international business merchants, Nigeria banking industry bank customers the government and the general public.
The recommendations are as follows for a country embracing import substitution with an adjustment gramme trade should be as free as possible
Secondly government should improve on the export guarantee credit this will provide a catalyst for improving export in the country; government should also consider it stand on the issue of the value of Naira.
When this is done not only will the investment posture of Nigeria improve. It will go along way in balance of payment and terms of trade deficits should be handled. Government should induce such countries with huge balance to buy from Nigeria. This However will only be possible when investment climate in Nigeria is improved.
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