The classical economics hold that trading is good and essential for every human being. Relatively one is better of in concentrating in the production of these goods and services in which he has competitive and comparative and advantage and buy from others those goods and services which they can produce relatively more cheaply. This is applicable to everybody and countries alike.
Thus, through the market mechanism, in a market economy, a high level of output of goods and services is attained and shared to the benefit of all in the transaction. As with individuals, so with nation international trade has contributed so much to the country’s infrastructure and manpower development. Hence the need to look at merchant banks and their contributions towards financing trade in the country Nigeria is obvious. This research work is structured into five chapters.
The term international trade refers to a form of trading operation conducted beyond national boundaries, otherwise called import and export. Consequently, International trade may be defined as the exchange of goods and services among the citizen of independent
Sovereign states or countries. In Nigeria, the export growth rate has been perceived as a major obstacle to accelerated development and in order to avert this, export oriented strategies should be evolved. The import and export sector in any economy has to be natured, projected and promoted to enhance its positive and meaningful contributions to the survival of the economic system.
Foreign trade occurs because nations believe that there will be a gain in total productivity of factors if there is a measure of specialization by region in forms of production in which they have greater comparative advantage or least in comparative disadvantage, thus country will export those commodities in which its comparative disadvantage is the least. Comparative disadvantage arises because of the following factors, differences in climate national resources, geographical situation and efficiency of labour.
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