CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

In recent time, it is observed that the wave of globalization phenomenon has taken a centre stage as a dominant feature in the international socio-economy. It is inevitably a phenomenon that no country can escape. It is on this note that many countries are compelled to take strategic steps towards actualizing their economic growth and development in the circumstance, Nigeria is at liberty to either position itself and maximizes the benefits of this New World Economic order or be left away as by-stander or marginal player in the international economic configuration (Tandon, 2000). Putting this into consideration, the globalization of the world economic system has, however, forced many developing countries such as Nigeria to initiate policy measures and establish institutional frameworks aimed at accelerating their growth and development in line with current global economic trend.

Globalization constitutes a mega trend in global social economy and has assumed a new phase in contemporary international economic relations (Akinboye, 2008). Given the emergent socio-and economic transformation as well as the technological advancement in communication, information, transportation etc, the process seems to be irreversible (Yaqub, 2003). Nation States have indeed consistently intensified efforts towards engaging in business across national borders and constructing production and distribution networks on a global scale.

In reality, globalization is a new name for Laissez Faire economy and attempt to unify normative principle of organization for all the countries of the world by largely accounting for developed economies integrating with less developed economies by means of foreign direct investment, reduction of trade barriers and in many cases cross border immigration. Although the political, cultural, social and environmental aspects of globalization are no doubt important, the economic aspect is perceived to be at the heart of the globalization process (Obadan 2006). Economic globalization fosters the advancement of a global mentality and conjures the picture of a borderless world bringing growing tendency towards the universal homogenization of ideas, cultures, value and lifestyle through trade, banking, communication, transport etc (Akor et al 2012). Trade has been a vital issue in the economic relations of countries. It goes beyond exchanging goods and services and leads to the urge to improve and advance further through knowledge, skill acquisition which improves development, capital and ideas are employed leading to expansion and improvement of quality and quantity of output (UNCTAD, 2010). It has however, been argued that globalization entails amplified risk and uncertainty as developing countries in particular becomes vulnerable in the international market due to their poor nature.

1. STATEMENT OF THE PROBLEM

Nigeria is a member of and signatory to many international and regional trade agreements such as IMF, WTO, and ECOWAS etc. The policy response of such economic partnership on trade has been to remove trade barriers, reduce tariffs and embark on outward-oriented trade policies. However economic growth in Nigeria has been disappointing. Despite her large market size ranked 32nd position, which should give her significant economies of scales in production and attract investors, Nigeria still relies heavily on importation of consumable goods with level of poverty. The world economic forum using her Global Competitive Index introduced in 2004, placed Nigeria on 120th of 148th poorest nation, using 12 pillars of competitiveness namely- Institution, Infrastructure, Macroeconomic environment, Health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation. Food import-export gap has widened. BOP has been under pressure as a result of external debt service burden. Despite implementation of trade liberalization measures taken, reduction in external debt and debt services, some macroeconomic indicator show a poor performance of the economy characterized by infrastructure inadequacy, widespread corruption, inefficiency in the public sector, low degree of savings, low capital formation and capacity underutilization

1.3 AIM AND OBJECTIVES OF THE STUDY

The main aim of the research work is examine globalization and its impact on socio economic status of Nigeria. The specific objectives of the study are:

1. to determine the relationship between globalization and the socio economic status of Nigeria
2. to determine the extent to which globalization has affected the socio economic status of Nigeria  
3. to determine the forces of globalization in Nigeria
4. to investigate the factors affecting globalization and the socio economic status of Nigeria
5. to proffer solution to the above problem

1.4 RESEARCH QUESTIONS

The study came with research questions so as to ascertain the above stated objectives of the study. The research questions foer the study are:

1. What is the relationship between globalization and the socio economic status of Nigeria?
2. To what extent has globalization affected the socio economic status of Nigeria? 
3. What are the forces of globalization in Nigeria?
4. What are the factors affecting globalization and the socio economic status of Nigeria?
5. What is the solution to the above problem?

1.5 STATEMENT OF THE HYPOTHESIS

H0: there is no significant relationship between globalization and the socio economic status of Nigeria

H1: there is significant relationship between globalization and the socio economic status of Nigeria

1.6 SIGNIFICANCE OF THE STUDY

The study on globalization and its impact on socio economic status of Nigeria will be immense benefit to the Nigeria society and other African countries. The study will examine the place of the socio economic status of Nigeria with globalization. The study will determine the effect of globalization on socio economic status of Nigeria. The study will serve as a repository of information to other researchers/students that desire to carry out similar research on the above topic. Finally the study will contribute to the body of the existing literature on globalization and its impact on socio economic status of Nigeria.

1.7 SCOPE OF THE STUDY

The study on globalization and its impact on socio economic status of Nigeria will cover globalization in the private and public sectors of Nigeria. The study also covers on the place of the socio economic status of Nigeria with globalization.

1.8 LIMITATION OF THE STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

 1.9 DEFINITION OF TERMS

Globalization: Globalization or globalisation is the process of interaction and integration among people, companies, and governments worldwide.