THE PROBLEM OF FINANCING INTERNATIONAL TRADE IN NIGERIA

ABSTRACT

This research work tries to give an insight into the issue of the problems of financing international trade in Nigeria from the period (1990 – 1995) this study is aimed at analyzing Nigeria’s foreign transactions during and after (SAP) periods.

The work is organized into the chapters for easy comprehension and deduction.

One it deals with the introduction statement of problems objective of the study.

Two it involves a review of some related literature role risk.

Three it also treats some underlined issues towards the cash flow problems in Nigeria spanning through structural adjustment programme.

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

Chapter one

Introduction

1.1            Statement of problem

1.2            Rational of study

1.3            Significance of the study

1.4            Definition of terms

Chapter two

Review of related literature

Chapter three

3.1            Statement of hypothesis

3.2            Methodology of study

3.3            Sources of data

Chapter four

4.1            Data presentation

4.2            Data analysis

Chapter five

5.1            Summary

5.2            Conclusion

5.3            Suggestion/recommendation

CHAPTER ONE

INTRODUCTION

1.1            STATEMENT OF THE PROBLEMS:

As we have seen the transfer of capital from one country to another is a common process of international trade. Nations in a poor country may wish to borrow the savings of nations is a richer country nature industrial countries supply grants in aid to develop countries. Defeated countries have war been obliged to make reparation payment to victors corporation in one country may wish to augured more capital assets to setup subsidiaries in another in all these are transaction between countries all regarding the movement in and out funds at time these are not in currency fund but in the correct value of capital flow proper conversion rate and the fluctuating issue of fright currencies.

1.                 In my own I want to investigate how defeated countries have after war been obliged to make reparation payment to victors.

2.                 I also want to investigate how corporation in one country may wish to acquire capital asset or set up subsidiaries in another

3.                 I investigate on how the remittance lay introduced exchange rate risk into the transaction

1.2            RATIONAL OF STUDY:

The purpose of this study includes the following.

a.     To examine international cash flow in trade.

b.     To analyse the risk factors in international cash flow

c.      To race the major problems of financing international trade

d.     To have a look at trade restriction and government policies and its effect on trade.

e.      To overview SAP in one – oil financing sector’s

1.3            SIGNIFICANCE OF THE STUDY

This study is of enormous importance to various people of divergent walks of life.

Secondly; it is of great significance to the government as it will enable some to adjust government polices implementation on trade transaction this could in actual fact help in reducing the back long of deficit.

The individuals will benefit however the beneficial to the employees government and the banks. As and individual the applied to other institutions that work with and achieve result through people such as industrial harmony through workers satisfaction will serve as an independent.

1.4            DEFINITION OF TERMS

This is the rate at which various currencies exchange with one another. It is generally assumed that exchange rates are determined by supply and demand or some how controlled by the government the problem with exchange rate is that of its incessant fluctuation. Exchange rate is hardly constant and importers and exporters find this aspect in trade quite irreconcilable most international trade transaction have been ruined by venture of exchange rate fluctuations.

TARIFF

The tariff is a standard instrument for commercial policy. It is essentially a tax levied by a government on goods leaving a country and transit duty which is goods through out the country.

IMPORT LICENSE:

Here some specific commodities are placed on the number of people that will be importing the commodity well. As a result certain commodities can only be imported by those who have the License.

FOREIGN EXCHANGES CONTROL

This is used by the government to control expenditure on importers. This is done by distributing foreign currency for only those good which is necessary

EXCHANGE RATIONING

This involves the allocations offering exchange to some government authorities. These authorities in turn rotation the foreign exchange among the competing demands such rationing will give preference to the importation of goals and services which are essential to a country to some individuals not on the basis of the individuals or groups who yield the greater political influence give the biggest tribes to the official concerned

EMBARGO

This is an outright probation in the importation of some items the purpose of embargo Local industries and cut down on the use of foreign exchange as well as cutting down on harmful commodities like cocaine cigarette what Anyone caught importing this commodity will be punishable by the Law.

DEVALUATION

          This is an expenditure switching policy of the government to discourage import as well as export. When the government devalues the currency from its rate to other countries’ the prices of imported commodities increases.

INTERNATIONAL TRADE

From a broad prospective, international trade means transactions between a country and other countries of the world.

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