ABSTRACT
The
main focus of this research work is to examine the influence of multinational
companies in the economic development of Nigeria. In this project, the
objectives of this work is to ascertain the extent of involvement of
multinational companies in the economic development of Nigeria using indices
like employment provision, transfer of technology and to determine the
political, social-economic implications of their existence in Nigeria. All
these were discussed in chapter one. In chapter two, related literatures were
reviewed. The literature encompasses of people’s view on the activities of
multinational corporations. Chapter three consists of research design and
methodology. The sources of data used were primary and secondary sources. The
primary sources include the use of oral interview and questionnaire while
newspapers, journals, textbooks, symposia were source of secondary sources. In
chapter four, the information collected were presented and analyzed and the
hypothesis were equally tested in which it was discovered that the MNC’s are
not interested in Nigeria economic development but are interested in exploiting
the Nigeria’s economy. In chapter five, the recommendation made is that Nigeria
should develop her own indigenous technology that will aid her in her search
for economic development.
TABLE OF CONTENTS
Title Page
Certification
Dedication
Acknowledgement
Abstract
Chapter
One: Introduction
1.1
Background to the Study
1.2
Statement of the Problem
1.3
Research Questions
1.4
Objective of the Study
1.5
Statement of Hypotheses
1.6
Scope of the Study
1.7
Significance of the Study
1.8
Limitations of the Study
1.9
Operational Definition of Terms
Chapter
Two: Literature Review
2.1
Introduction
2.2 Schools of Thought about Multinational Company
2.3 The Moderates School of Thought
2.4 Economic Effect of Multinational
Corporations
2.5 The Negative Effect
2.6 Political Implication of Multinational
2.7 Summary of the Review
Chapter Three: Research
Methodology
3.1
Introduction
3.2
Research Design
3.3
Population of the study
3.4
Sample and sampling technique
3.5
Instrumentation
3.6
Method of data collection
3.7
Method of data analysis
Chapter Four: Data Analysis,
Interpretation and Discussion
4.1 Introduction
4.2 Data Presentation and Interpretation
4.3 Data Analysis and Hypothesis Testing
4.4 Discussion of Findings
Chapter Five: Summary, Conclusion
and Recommendations
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
References
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Over the years, Multinational
Corporations (MNC) has been a source of controversy ever since the East India
Company developed the British taste for tea and a Chinese taste for opium
(Stopford, 1998). A typical multinational corporation (MNC) normally functions
with headquarter that is based in one country, while other affiliates are based
in locations in other countries.
In some circles, a multinational
corporation is referred to as a multinational enterprise (MNE) or a
transnational corporation (TNC) (Tatum, 2010).
They enter host counties in different
ways and different strategies. Some enter by exploiting their products to test
the market and to find whether their existing products can gain sizeable market
share for such firms, they rely on export agents. These foreign sales branches
or assembly operations are established to save transport costs because there is
a limit to what foreign exports can achieve for a firm owing mainly to tariff
barriers and quotas and also owing to logistics on cost of transportation. Most
of the firm are encouraged by the low wage rates and other environment factors.
To meet the growing demands in the foreign countries the firm considers other
options such as licensing of foreign direct investment which are critical
steps. Some continue with export even when they have settled for the FDI
option. The idea of multinational corporations has been around for centuries
but in the second half of the twentieth century multinational corporations have
become very important enterprises.
There is a risk that multinational
corporations facilitate patronage problems in resource rich countries,
exacerbating the resource curse. Multinational Corporations (MNCs) in service
industries have given this sector large and growing impact on the global
economy (Goerzen & Makino, 2007). The Marxists view the emergence of the
multinational corporation as a historically progressive aspect of capitalism in
the process of developing, at international level. The nature or objective of
MNCs is maximization of profit at the lowest possible cost. Actually it is this
feature that gave rise to MNCs, so the idea of investing in foreign land is not
to better the lot of the host nation but to exploit as much as possible in
order to develop the home country (Ozoigbo & Chukuezi, 2001).
These multinational corporations are
very rich in all ramifications because of the profit they make in Nigeria. For
instance, Nigeria is one of the largest producer of oil in the world which
accounts for over 80% of her income since this sector of the economy is
effectively controlled by multinational corporations who make enormous profit
from the industry, one expects that that should spearhead the developmental
process of Nigerian.
But unfortunately, the reverse has been
the case. Most multinational companies have been fingered on several occasions
playing active roles in the underdevelopment of Nigeria.
1.2 STATEMENT OF THE PROBLEM
The multinational company is an agent of
development in the sense that they constitute the source of capital investment,
employment for the people technological transfer etc.
It has been observed that multinational
corporative have not contributed to the economic development of Nigeria. They
have been seen as agent of economic distribution as well as economic bodies.
Most of their activities in Nigeria have not led to the development of Nigeria
because their interest is not to make Nigeria self dependent but to exploit the
economy of their advantage. Thus, multinational corporative have adopted newly
strategies to achieve this goal. There is significant relationship between
government policy and multinational companies to economic growth but to what
extent that has been achieved is yet to be determined.
1.3 OBJECTIVE OF THE STUDY
The main objective of this study is to;
1.
Find out if multinational companies
contribute to economic development of Nigeria.
2.
To ascertain if there is any
significance relationship between government policy and multinational companies
to enhance economic development of Nigeria.
3.
To highlight the consequences of
ignoring the motion of multinational co-operation in Nigeria.
1.4 RESEARCH QUESTIONS
The study will determine the following
questions;
1.
Does a multinational company contribute
to economic development of Nigeria?
2.
Is there any significance relationship
between government policy and multinational companies to enhance economic
development of Nigeria?
3.
Does multinational corporations in
Nigeria has political and socio economic consequences?
1.5 STATEMENT OF HYPOTHESIS
Hypothesis One
Ho:
Multinational companies
have not contributed to development of the Nigeria economy
HI:
Multinational companies
have contributed to the development of the Nigeria economy
Hypothesis Two
Ho: There is no
significance relationship between government policy and the multinational
companies to enhance economic development of Nigeria.
HI: There is significance relationship between
government policy and the multinational companies to enhance economic
development of Nigeria.
Hypothesis Three
Ho: Multinational
corporation (MNC) operating in Nigeria have no political and socio economic
consequences.
HI:
Multinational
corporation (MNC) operating in Nigeria have political and socio economic
consequences.
1.6 SCOPE OF THE STUDY
This study generalizes the role played
by the different multinational companies but will focus attention on Guinness
Nigeria Plc to enable the research have accurate and careful examination of the
study. This study will also go a long way to highlight the parts played by
multinational companies by studying how they are financed, how they make their
profits and how the profits utilize the extent they have transferred their technological
skills to the host country.
How they have helped in solving
unemployed and other social responsibilities problems in Nigeria.
1.7 SIGNIFICANCE OF THE STUDY
Since 45 years after political
independence, Nigeria still remains a mono product export economy exporting
only raw materials and crude oil.
Since Guinness Plc aim is to develop the
country, how far has it achieved this aim?
How many people acquire the
technological skills which its claims to transfer to Nigerians. This study will
expose to the policy makers and economic planners both at private and public
sectors the negative and positive effects of the company’s activities.
It will also help the government to
re-structure their relationship with multinational corporations.
1.8 LIMITATIONS OF THE STUDY
One of the problems encountered was the
attitude of the respondents towards the research, some misinterpret the
exercise thinking it was a set up, in short, there was lack of co-operation
from the respondents, the researcher had to implore total loyalty so as to
obtain the desired information.
The researcher had problems in obtaining
relevant data. The company did not give enough data and relevant information.
Another problem encountered by the
researcher was that he had to combine full time academic study with the research
and this slowed down the pace of work
1.9 OPERATIONAL DEFINITION OF TERMS
1.
Multinational
National Enterprises (MNE): This is a cross border
national business organization or aggregate of organization that are
characterized mainly by the disposal of their managerial ability among several
nations.
2.
LDC’s:
Less
Developed countries of the world
3.
Trans-National
Company: This is a multinational organization managed and
owned by person of different nationalities.
4.
Supernational:
This
is a transnational firm that is legally denationalized by firm that is legally
denationalized by firm that is legally denationalized by becoming incorporated
through an international agency.
5.
Parent
Company: A parent, which owns and control foreign direct
investment.
6.
Head
Office: The central organization of the firm as posed to the
foreign subsidiaries.
7.
Foreign
Subsidiaries: This is the corporate form, which
represents the foreign direct investment.
8.
International
Division: This is the part of the head office with a foreign
geographical responsibility.
9.
International
Management: The used of executive from any country
operating away from their own.
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