THE EFFECT OF MULINATIONAL CORPORATION ON THE NIGERIA ECONOMY
A CASE STUDY OF ANAMBRA MENUFACTURING COMPANY (ANAMMCO) ENUGU NIGERIA
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1.1 Background of the study 4
1.2 Organization of the study 5
1.3 statement of problem 6
1.4 Purpose of study / objective 6
1.5 Research question 7
1.6 Research hypothesis 8
1.7 Scope and limitation of the study 8
1.8 Significance of the study 8
1.9 Definitions of term
LITERATURE REVIEW 10
2.1 Origin of multinational corporation 16
2.2 A review of pre colonial Niger 19
2.3 The origin of Multinational Corporation in Nigeria 21
2.4 Classification of Multinational Corporation in Nigeria 24
2.5 Review of indigestion programme in Nigeria 28
2.6 The evaluation of indigestion decree in Nigeria 32
3.1 Research Design 36
3.2 Sources of data 36
3.3 Questionnaire design 37
3.4 Data treatment techniques 38
3.5 interview question 38
PRESENTATION ANALYSIS AND INTERPRETATION OF DATA
4.1 presentation and analysis of data 39
4.2 Techniques applied 49
4.3 hypothesis testing and proofing 49
FINDINGS CONCLUSION AND RECOMMENDATION
5.1 Summary of findings 56
5.2 conclusion 57
5.3 Recommendation 58
- BACKGROUND OF THE STUDY
Based in part on the development of modern communications and transportation technologies, the rise of multinational corporation was totally unanticipated by the classical theory of international trade as first developed by Adam Smith and David Ricardo. According to this theory which rests on the doctrine of comparative advantage each nation should specialize in the production and export of those goods that it can produce with highest relative efficiently while importing those good that other nations can produce relatively more efficiently.
Underlying this theory is the assumption that white good and services can move internationally factors of production such as capital labour and hand are relatively imniobile furthermore the theory deals only with trade in commodities; it ignores the role of uncertainty economies of scale and technology in international trade and is static rather than dynamic.
Contrary to the postulates of smith and Ricardo, the very existence of multinational corporation is based on international mobility of certain factors of production. Capital raised in London on the Eurodollar market may be used by on wise based pharmaceutical firm to finance the acquisition of equipment by a subsidiary in Brazil. It is the globally world innate allocation of resources by a single centralized management that differeciate the multinational enterprise from other firms engaged in international business. Decision regarding market entry strategy, ownership of foreign operations and production marketing, and financial activities and made with an eye to what is best for the corporation as a whole. The true multinational corporation can be characterized by its emphasis on group performance rather than of its individual components.
At the center of the debate on globalization one the multinational corporations giant actors who think and act globule. Their exetence is often associated with the phenomenon of globalization itself. These actors have gained power visibility and influence at all levels, and one determinant to the setting and implementation of the “ global agenda”. MNCS have created a massive wealth and propelled high technological development. However, their global role their increased economic and political power especially felt in developing countries of which Nigeria is among ) their strong influence in shopping international rules and their lack of transparency and democratic control has put them under severe scrutiny.
Infact the mention of multinational corporation usually elicits mixed reactions. On the one hard, MNCS are associated with exploitation and ruthlessness. They are criticized for moving resources in and out of a country as they strive for profit without much regard for the country social welfare Varity Corp a Canadian multinational firm. Was criticized for its action in 1991 to relocate its headquarter from Toronto to the united states (Buffalo) in order to take advantage of U.S Canadian Free Trade agreement. “For a long time India referred MNCs as agents of neocolonialism.
On the other hand MNCs have power and prestige additionally they create social benefit by facilitating economic balance. As explained by Miller “with resources capital, food and technology unevenly distributed around the plannet and all in short supply, an efficient instrument of quick and effective production and distribution of a complex of goods and services is first essential.
According with the UNCTAD (United Nations conference on trade and development) more than two thirds of the world trade involve at least one multinational half of which occurs within the same multinational around the world. The worlds 44,508 MNCs manage some 280,000 affliates all over the world.
With regards to Nigeria economy there some 3,000 of them having their foreign direct investment either in manufacturing or service industries. Their emergency with regard to Nigeria economy dated back to the history and activities of the Royal Niger company. Of which today in Nigeria they have increased much more in number. These multinational corporations while Nigeria in a way opportunity of gening what they did not have from foreign country, but the issue is that did they create opportunity with some part of the produce of Nigeria industry employed in a way in which Nigeria have greater advantage.
- ORGANIZATION OF THE STUDY
This project is organized in five chapters. Chapter one is an introduction to the study covering such issues as:
- Background of the study
- Organization of the study
- Statement of problem
- Purpose of the study