The study of the nature involves a lot of deep research and understanding of the factors, which creates the effects on the subject matter. Primarily, these factors were more economical than managerial as the case may be, on the understanding that this research work is being casual out under a management setting or department.
Just as the subject matter is, the impact of foreign direct investment on the Nigerian Economy with a case study of Nigerian Bottling Company Plc, it is based on the economic, social and entrepreneurial impacts created by these multinational companies like NBC Plc on their host societies.
Based on this, the objective of this study was to determine through quantitative and quantitative measures whether the benefits of multinational enterprises (MNE’S) out weigh the cost that results from their activities in the hose countries.
The first chapter of this work contains a general discussion (i.e. critics and defense) of FSI’s activities in host countries. Further the statement of the research problem was studied and the need for the study. The scope and limitation to the research work was finally looked into with the stated hypothesis which guide the researcher in his evaluations.
In chapter two, a number of part related literatures were examined as it relates to the impact of foreign direct investment to Nigeria as the case may be with particular reference to NBC Plc activities in Enugu Zone.
Chapter three treated the design of the study, the method of collecting data and the ways in which the questionnaires were distributed within the chosen population.
The data gathered from the research were analysed and interpreted in chapter four of this research report.
Finally, the summary of findings, conclusions on the research work and recommendations were given by the researcher all in chapter five.
It is believed that these recommendations made in this study will help both the multinationals in their relationship with their host communities as well as creating an enabling environment from the host country for their business to there.
Nigeria emerged from the colonial experience with an economy structured in accordance with the imperators of colonial economic relationship. The first National Development plan of (1963) was launched with the objectives of providing the framework for industrial take off and development. However, as the foreign investors were apprehensive of the nascent independent administration, efforts were made not only to alloy their fears of nationalism but also to attract more foreign investments through joint ventures with regional government then or the federal government. The first development plan as an open door regime saw an increase in the establishment of miscellaneous foreign enterprises in Nigeria, many of which are unincorporated branches of their overseas business.
However, just only about few years offer independence when the rest of the world including the erstwhile colonial master had hardly adapted to the realities of Nigeria’s attainment of nationhood or for the Nigerian government to articulate and plan its own economic policy, the country experienced its first military coup d’ et al in 1966. this was followed by the civil was which tested for three years hence necessitated the cohesion of resources towards the successful execution of the war. The period saw the introduction of various control measures of great significance. For the foreign investors, these include licensing, quotas, exchange control measures with two tier compulsory credit system for import payments, restriction on capital/individual transfer and the promulgation of the companies decree of 1968 which compelled all forms operating the country to be incorporated as Nigerian Companies subject to local regulations.
Foreign Direct Investment (FDI) refers to a movement of capital that involves ownership and control of a firm in another country for instance, the purchase of common chores in a Nigerian incorporated company by a French citizen involves ownership and an element of control. This is because all shares in an organisaiton have same voting rights.
For the purpose of this classification such is recorded as FDI if the shares acquired involves more than 10% of the outstanding common shares of the Nigerian company.
In this research and generally, Foreign Direct Investment is classified in the context of Multinational Corporations (MNC). The MNC is sometimes refered to as Multinational Enterprises (MNE) is Transnational Corporations (TNC) or Transnational Enterprises (TNE).
According to the chairman of BOD’s of Chemical Co, a multinational form in the united state origin “the emergence of a world economy and the multinational corporation have been accomplished land in land”. He sees multinational enterprises moving towards what he called “a global company”, a firm that have no nationality but belongs to almost all countries.
The phenomenon of the MNC can be explained only in a world of imperfect factor and product market characterized by differential taxation market power and share, positive information costs and the existence of pure specific revenue producing assistance. In such a world, the market mechanism is partially replaced by other organizational firms, which generates and transmits relevant information and which co-ordinates production and marketing decisions.
The MNC arises in other words in response to a particular kind of market failure caused by high differential costs of inter-nation transfer of market information and technology and of course, factors of production (Tour and Hirsil 1979). The key features of MNC are the, it provides the recipient nation with a package of knowledge, capital and entrepreneurship development. It may thereby create a positive contribution to economic growth and development in host countries.
Many multinationals corporations exist in the Nigerian economic settings these encompassed the manufacturing sector like Nigeria Bottling Company (NBC), constitution like Julus Berger Nigeria, Mineral Exploration like Shell Nigeria, banking etc, to mention but a few. It becomes pertinent that the manufacturing sector be given due cognizance for the purpose of the research work. In this sector, the Nigerian Bottling Company Plc will be a case study and a pointer.
The concept of Multinational Corporation and economic development has remained on the relationship between the MNC’s and the host societies and how development is appraised in these host societies.
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