PROJECT TOPIC- EFFECT OF MULTINATIONAL CORPORATION ON THE NIGERIAN ECONOMY
This project is designed basically to examine the “Effect of Multinational Corporations on the Nigerian Economy”. The major objective of this study is to determine the extent to which the activities of these economic agents have made a positive or a negative impact on the economic growth and development of Nigeria. The researcher recommends that the Nigeria Government should pay more attention to developing its human resources, so that they can be more technologically capable to fit these multinationals. Technological backwardness which is till date attributable to the MNCS has compelled the Nigeria government to look for a way out of this unfortunate circumstance, through a system referred to as the import substitution industrial strategy. This serves as an eye open to the Nigeria economy.
- Background to the Study
A multinational company is a company that has the whole world as its market from which it purchases raw materials; source for funds, manufactures its products and which it further projects for sales. Some people associated multinational companies with non – colonialism, the Europeans America Nations described multinationals as the engine of growth in the underdeveloped countries.
Different schools of thought gave their approach to this issue by suggesting an evolutionary process of international to multinational, transitional and super national organization. A multinational company has designs of its production facilities around the world. Onimode (1985) in his example using Ford said it “was jointly designed by European and the U.S. teams and is sold with only minor variations in dozens to foreign markets”.
Ford makes and sell other cars in Europe that are never seen in the United States, Ford cars are designed, produced and sold or individual markets wherever they are and without regard for national boundaries. Multinational companies though spread its activities worldwide produces specifications to suit individual nations. Multinational companies are otherwise called multinational corporations (NNC’S) or multinational Business.
The multinationals came into focus after the World War II and gained attention by mid 1950s and became highly conspicuous by the end of 1960s (Vemon 1971). The tremendous growth and spread of global enterprises during the twentieth century infringed and reduced national boundaries fading ink to foreign presentation. The spread of multinational corporations in addition to the huge financial wealth and economic power has created fear and confusion in international politics and analysis.
The fear is in two areas firstly is MNC an independent actor in world policies or as agent of parent country foreign policy. Secondary, do MNC’S autonomous actors posses political and economic power equal to or greater than the majority of foreign states?
- Statement of the Problem
The Nigeria nation existed with all the natural resources she was endowed with before coming in touch with the Western World. The contact with the white men resulted into a trade which marked a doom for the Africa nation at large due to an imbalance of the trading pattern.
The aim of this study is to look at the impacts of these multinational corporations on the Nigeria economy which falls into the positive impacts and also the negative impacts and how this can be curtailed to create a more enabling economic condition for the Nigeria society.
The problem is in the area of economic exploitation which started as a result of the contractual agreement signed by African Nationalists who schooled abroad on demand for self rule. The actual implication of the contract signed was that the European were extending their rules over Africa but this time using Africans who in the word of Franz Fanon (2004) were referred to as ‘Black Skin, White Masks’.
- Research Questions
- Which are the multinationals in Nigeria?
- Do their activities have positive impact on the Nigeria Economy?
- Is there any government action to check this?
- Objectives of the Study
The specific objectives of the study are:
- To investigate the role of multinationals on Nigeria
- To ascertain ways Nigeria could maximize the benefits from the multinational corporations and minimize their negative and anti-development objectives.
- To find out the effects of inadequate performance of the multinationals on Nigeria
- To examine the positive impacts of multinationals on the Nigeria economy and make recommendations on findings.
- Statement of the Hypotheses
- The presence of multinational corporations will help enhance productivity in the Nigeria
- The benefits and minimal of negative and anti-development objectives will not help to develop the Nigeria
- Knowing the positive impacts will help in the development of Nigeria
- Scope of the Study
The research work covers the impact of the activities of the multinationals on the Nigeria economy with a view of the positive impact, negative impacts and also controls of these multinationals.
- Significance of the Study
The reason for this research work is to look into the challenges faced by the Nigeria economy as a result of the presence of these multinationals on our economy.
- Limitation of the Study
Due to the following constraints, there were limitations to the researcher could go with this research work. These constraints include:
Inadequate materials, journals, periodicals and other documented materials relating to this research topic.
Financial problem – the high cost of materials, cost of mobility to and fro location of research (field) and also high cost of obtaining research materials.
Time – time factors was also another constraints as it was really hectic combining this research work with lectures, assignments, tutorials seminars and other extracurricular activities like church meetings.
Poor network – where it would have been helpful to source for data online via the internet, our network providers were in no way helpful.
- Operational Definition of Terms
Multinational Company: A multinational company is one that has the worldwide market as a place where it buts raw materials, borrow money, manufacture its product and to which it sells its product.
Foreign Direct Investment: It is defined as acquisition of assists which generate income by institution or individuals in one country in another foreign country.
Less Developed Countries (LDC): These are the third world nations of the world.
Neo-Colonialism: The control or domination by a powerful country over weaker ones by the use of economic pressure, political supervision and cultural difference.
Labour: Is the productive service embodied in human physical effort, skills, intellectual power etc. it is a production process.
Economic Development: This is a state of being employed or having work to do; work in this regard refers to all human activity aimed at producing or contributing to the production of commodities that generate income for the person who is employed.
Technology: This refers to skills, methods or technologies used in improving quality of goods and the production function technique that ensure reflection n the cost of production and improvement in the quality of goods and series based on certain combination of input.