Impact of Trade Liberalization on Business Performance of Selected Multinational Corporations a Case Study of Mtn
CHAPTER ONE
Objectives of the Study
The aim of this study was to evaluate the impact of trade liberalization on business performance of selected Multinational Corporations a case study of Samsung Mobile and Blackberry. The specific objectives are as follows:
- To evaluate the impact of trade liberalization policy reforms in Nigeria on the turnover, employment figures and wages structure of Multinational Corporations.
- To evaluate the impact of trade liberalization policy reforms on how issues related to economic empowerment have been addressed together with foreign ownership.
- To evaluate the impact of trade liberalization policy reforms on the import and export initiatives of Multinational Corporation.
CHAPTER TWO
LITERATURE REVIEW
Introduction
The chapter deals with literature review on the concept of impact of impact of trade liberalization on business performance of selected Multinational Corporation a case study of Samsung mobile and Blackberry. This involves the benefit of trade liberalization, the nature of trade liberalization in Nigeria, organizational performance, the review of empirical studies, theoretical review, theoretical framework and summary of literature review.
Conceptual Review
In this section, the basic relevant concepts were reviewed. These include trade liberalization, organizational performance, among others.
Trade Liberalization and World economy
Liberalization is a process whereby a state lifts restrictions on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government regulations are relaxed. Recent decades have seen rapid growth of the world economy. This growth has been driven in part by the even faster rise in international trade. The growth in trade is in turn the result of both technological developments and concerted efforts to reduce trade barriers. Some developing countries have opened their own economies to take full advantage of the opportunities for economic development through trade, but many have not.
Integration into the world economy has proven a powerful means for countries to promote economic growth, development, and poverty reduction. Over the past 20 years, the growth of world trade has averaged 6 percent per year, twice as fast as world output. But trade has been an engine of growth for much longer. Since 1947, when the General Agreement on Tariffs and Trade (GATT) was created, the world trading system has benefited from eight rounds of multilateral trade liberalization, as well as from unilateral and regional liberalization. Indeed, the last of these eight rounds (the so-called “Uruguay Round” completed in 1994) led to the establishment of the World Trade Organization to help administer the growing body of multilateral trade agreements.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter covers the methodology of this study. Key issues discussed includes; data collection, sampling technique, instrument for data collection, method of data analysis among others.
Research Design
The research design used for this study is survey. It is used as an assessment tool to provide information on which to base sound decisions. It also serves as a foundation for more investigation. The data gathered in a survey are usually answers to predetermined questions that are asked of respondents. This research method was adopted because it offers opportunity for the collation of facts and information from a wide spectrum of respondents without much expense, hence it is expedient for this research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Introduction
In this chapter, the researcher tends to deal with the analysis and presentation of data collected in the course of this project. A total of 96 copies of questionnaire were administered in the area under study and 96 copies were retrieved from the respondents. This represents 100% return rate.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
This chapter deals with the summary of this study, conclusions from the findings and recommendations which can be used for policy making.
Summary
This study assesses the impact of impact of trade liberalization on business performance of selected multinational corporations, a case study of MTN. The study is in five chapters. In the first chapter, a general background of the study was undertaken. In view of the background, the problems of study were identified and stated, the research questions, the objective, scope, justification and significant of the study were outline and discussed.
Chapter two was divided into three parts- the conceptual, theoretical and empirical literatures. The conceptual framework, reviewed the concept of the benefit of trade liberalization, the nature of trade liberalization in Nigeria. The empirical review,
In the third chapter of this work, the research design, population of study, sample size, sampling techniques, instrument for data collection, method of data collection, validity/reliability of instrument and method of data analysis were all discussed.
In the fourth chapter, data collected (primary) were presented and analysed to answer the research questions. Based on the various findings, the three questions were answered. After the analysis, the findings are as follows:
- Trade liberalization policy reforms in Nigeria have significant impact on the turnover, employment figures and wages structure of Multinational Corporations.
- Trade liberalization policy reforms have significant impact on how issues related to economic empowerment have been addressed together with foreign ownership.
- Trade liberalization policy in Nigeria have significant impact on the import and export initiatives of Multinational Corporation.
Conclusion
This study has underscored the impact of impact of trade liberalization on business performance of selected multinational corporations, a case study of MTN. Findings from this research uncovered that trade liberalization is an effective tool for Multinational Corporation success. Hence, organizations can only work effectively if liberalization policy favours it. This result reinforces the study carried out by This result reinforces the study carried out by Olaifa et al (2013) which revealed that economic growth had a long run relationship with trade liberalization. A significant structural break was also identified from 1986 to 2012 (the SAP period) implying that the free trade policy was a significant policy in the Nigerian economy. This was further reiterated in the findings of Alesina, spolaore and Wacziarg (2000). The results illustrate that free trade has a positive relationship with growth. Thus, in the light of the foregoing, this study reliably concludes trade liberalization has a positive impact on business performance of Multinational Corporations. Trade liberalization will lead to advancement of the economy, technological transfer.
The findings of this study have clearly shown that trade liberalization is a work activity that can make a very significant contribution to the overall effectiveness and profitability of an economy. The effectiveness and success of a Multinational Corporation therefore lies on the nature of trade policy. Thus, for any Multinational Corporation to succeed, proper trade liberalization techniques should be vigorously pursued and made compulsory.
Recommendations
On the strength of the observations and findings made in this study the following recommendations have been made.
- Trade liberalization policies should be implemented to favour Multinational Corporations in the country.
- Existing trade policies should be reviewed and new ones enacted so as to aid business performance of Multinational Corporations.
- Empowerment initiatives should be ensured to aid Multinational Corporations.
Limitations to the Study
In the course of carrying out this study, a number of limitations were encountered. Notable among them was the constraint encountered in sourcing for information, time constraints, location of case study however recommendations is valuable for policy implication.
Suggestions for Further Studies
This study has researched on the impact of impact of trade liberalization on business performance of selected multinational corporations, a case study of MTN. Further research can be done on the following:
- The influence of trade liberalization as a pre-requisite for wholesale operation.
- Impact of trade liberalization on economy of Nigeria.