Effect Of Globalization On Industry In Nigeria

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Effect Of Globalization On Industry In Nigeria


Abstract


This research was carried out to primarily find out the effect of Globalization on service industry. It focuses on the globalization through trade agreement and market integration.

Concept and process of globalization and information technology and global interdependence and dynamic globalization.

The related literature was reviewed only in major area such as important and growth of service industry the achieving global synergies, trends in globalization of the world economy and implications for Nigeria.

In the process of the research, valuable information will be obtained by the use of questionnaire administer to the EYSEOMERS o f MTB also personal interview will be utilized in the process of gathering data.

Data was gathered with the use of the questionnaire and analyzed with some statistics tools like chi-square (x2) the simple percentage and mean method. The investigation revealed that globalization brought the increase in productivity and profit level, it also enable service marketing to render their job effectively and efficiently which brought customers satisfaction through being competition. The research also revealed that no nation or body can develop in isolation.

The study went on to discovered that Nigeria services industries have not yet exploited much in the globalization recess due to certain factors like economic instability, mismanagement, Naira devaluation e.t.c. Although the service industries are improving. In the light of this, therefore the research recommendation that service industry should try to exploit opportunities and compete more with the rest of the globe.


Chapter One


Introduction

1.1 Background Of The Study

Globalization means the whole world is becoming a global village, the world are coming together to be one in unity, things are happening generally people done produce to satisfy the market people around them, but they produce for the whole market. What is happening at Saudi Arabia, America, Europe etc is happening in Nigeria, Ghana and parts of the whole world it is globalization. Globalization is a new world order that emphasis global perspective of the whole universe in pother worlds that world market is tended towards a universal standard.

The world economy has undergone radical change during the past two decades, geographical and cultural distances have shrunk with advent of jet planes, fax machines, global computer and telephone, look ups, world television, satellite, broadcasts and other technical advances. This has allows companies to greatly expand their geographical market average purchasing and manufacturing. The result is vastly more complex marketing environment for both companies and customers. Today almost every company, large or small is touched in some way by global competition. From the neighborhood florist that buys its flowers from Mexican nurseries to the small new- York clothing retailer that sources its merchandized competing in its home markets with giant Japanese rivals to the large America consumer goods producer introducing new prompts and to emerging market s abroad.

Companies in various inequities are also developing suing a global assembly life. In addition to sourcing their components suppliers and good s from abroad marry us companies are trinity to sell their seduces abroad . bud they are recognizing that to do this well they cannot do it alone so they are for miry strategic alliances with competitors who serve as supplier or distributors, technological partners all of this means that we are seeing and will continue to see some surprising alliances between international competitors e.g. Ford and Nissan successfully designed a mini- van together and ford has also had a successful strategic alliances with Mazda for the past 20years.
General electric and SNECMA a French company have been making jet engines together since 1971. coca- cola and Schweppes run a large soft drink during bottling plant together that has brought both companies, tremendous cost saving. Toshiba suppliers line transmitter to JVC television.

What is internet: the internet is a collection of thousands of computer, networks of varying sizes millions of computer more than 30 million users who share a compatible mean for interacting with one another to exchange digital data. A system that connects computer system located throughout the world that willing to share resources. Internet has created a co- operate we society that forms a virtual community stretching from end of global to other.
There are factors that necessitate globalization as follows. International spread of technology sizes of investment require, reduction of trade barriers and all environmental demographically, psycholographical and behavioral factors.

Globalization through trade agreement and market integration. The success of trading blocks in the world economy depending on members having similar economic structures, being geographically close to each other experiencing a political commitment and solving evidence of trade compatibility (fanlike) 1992, shoot 1999 ).

The first erigeron refers to the need accommodate the redistribution of trade flows employment and income which would necessary arise from the integration of the economies.

Globalization through (GATT) The general agreement of tariffs and trade round of discussion completed and signed on 15th December 1993 in General and was launched in urged airy seaside resort of punted Est. in September 1986, the Uruguay

Round of trade talks was the most ambitions attempted to date involving more than 100 centuries liberation trade and standardizing trade and standardizing trade reels in remove as many invisible trade barriers as possible to encourage closeness of the global the most striking trend in business today is growing globalization of market would wide for good and services. This is true for every thing from air lines to automobiles, barking to burgers, clothing to computer detergent to disappears, electronics to elevator , soft ware booth paste to tacos .corporation whether of us. Japanese, European, or other national origin are drawing an increasing proportion of their sales from international markets are the 100 largest U. S. multinational derive 39 percent of their sales from operations overseas. Company such as EXX on 1BM, Co legate- palm olive CPC International and coca etc. draw more than 60 percent of their sales from operations over seas, international markets are critical for companies such as sniveler the Naylor- Dutch

Conglomerate, Philips, the electronics giant and nestle the Swiss food mammoth who have relatively small modestly markets vans multination expires re emerging whose sales volume is often greater than G.N.P OF of many country yet globalization is not confined to a large multination . A new breed of “mini action “is emerging opening factories research labs and sales units around the world, these are typically Mid- size manufacturing compiles with sales of N 200 million to N1 billion which target specially rich markets would wide in areas such as precision instruction medical equipment or computer peripherals .talking advantage of the operating up of markets and new technologies they are able to stereo customer firm a habited number of manufacturing bases and keep a clean co-operation profile to complete more effectively in would market Medtronic,” manufacture of pace markets has Europe for research and manufacturing to serves these markets and tap into new technology in micro- matching and miniaturization. Japanese and European companies have entered would markets and constitute a major challenge in many industries traditionally dominated by U.S.A. firms.

Many companies from the newly industrialization and developing economics are also beginning to special their wings and to assume increasing important in field such as electronics textiles ship building and sects. Further more the tend toward globalization is occurring not only down stream in end markets for consumers or industrial goods but also up stream in markets technology and other resources in many industrial ,global searching in the increase resulting in the development of complex logistical system designed to take advantage of differential labor, production and raw- material cost in different countries such as the increased efficiently in international transportation and communication networks. Thomson consumer electronics of franc for example, makes component in Malaysia and Indonesia that go into TV sets, assembled in its highly auto mated plant in Singapore.

Indonesia has now become a favorites place for making expensive owning shoes numerous, U.S, Japanese automobile companies are setting up operation in Mexico. ford is investing $ 750 in a plant in Chihuahua to manufacture two empires for north America mission is spending $ 1billion on a new assembly plant at Aqua cadences to make sentries, some of which are to be recuperated to Japan. Such development imply that all companies need to adopt a global perspective. In their strategic marketing planning, irrespectively of their interest in international markets need to identify the most attractively opportunities would wide to determine their global strategic or key compressively advantage and investment strategy relative to these markets. Even companies not considering international operations need to develop strategy with and eye to international operations need national development and potential entry of foreign completion into the domestic markets.

The Concept Of Globolization.

Globalization is a process of integrating economic decision making such as the strong and dominate globally. A new would order is being creating with clear international and result to the global market with the consumptions. consumptive, investing and saving process all across the would it is a process of creating a global market place in which increasingly all nations are forced to participate. Key elements of this process are the international of sovereign nations through trade and capital flows, horizontal of the economics riles that govern relation ships between these sovereign nation creating structures to support and facilities dependence and interconnection and creation of a global market place. Yet another perspective of globalization goes beyond the information technology has created in pact on almost all aspect of human life (culture religion and values are would all affected are people all over the would exposed more than ever before to system and the enthronement of western style common culture. The fear of cultural in aerialist under scores a point that globalization would also be seen as a process of harmonization of different vultures and believers.

The more immediate and concrete impact of the technological advancement in communications has been the creation of global market place in which countries are increasingly being forced to participate, countries operating in separates take sovereign autonomous environments take decision which have bearing on others with the creation of a common global market place where autonomous units are increasingly succeed in globalization annals be defied as the process of shifting autonomous economics into the global market the systematic integration of autonomous economics into global system of production. This process is creating new strains in the global trading environment and placing new emphasis on international co-operation which calls for adjustment by all participating countries. on the positive side the process is providing the means for large expansion of world trade and increase nation a economic growth for countries in the position to benefits. Some elements of hype can be said to be associated with concept globalization.

There are the misconceptions that this process would eventually result in a boarders would. The world of separate nation state is said to ending if the process of globalization is allowed to run its global course. These are basically misconception . The fact that the process aims at increasing inter border relationships does not automatically means an elimination of the existence of nation states. Globalization is a process of expanding economic co-operation amongst states. and this does not necessaries borders. Seen from an economic perspective it does not even require harmonization or integration of social political systems. It is simply a process of intensified and broadened interdependence among nation. The process simply created a global market places which with the developing in communications technology can be accused by virtually any one from any location. Internal law of nation would still have to operate regulating how individuals and groups would be affected. The process opens up a world of opportunities for business. It links them to markets which were hither to unknown to them and provides protects for growth. Hype- extravagant or intensive promotion of product promote with hype (origin unknown).

Information Technology And Globalization

Information technology is playing a vital in the current process of globalization. Indeed, the current globalization process highly information based. It is there fore important to single out the role of information technology in the globalization process. Information technology combines progress in electronic, computing, and telecommunications to come up with a highly dynamic process of storing, processing, transmitting and presentation of information. Information technology is witnessing a phenomenal growth which has facilities new response mechanism countries are now in a better position to respond speedly to change in demand patterns and changes in international comparative advantages. For these countries with the domestic capacity more efficient production process have introduced in a bid to maintain a competitive edge within the changing global environment. DUC to scientific and technological break through in transistors semi conductors and integrated circuits or “clip” micro- electronic is having a profound influence on virtually every aspect of economy.

The result has been a drastic fall in costs and well as dramatically inn proved technical performance both within the electronic industrial and outside it, it is promoting the internationalization of production and markets which is antis to the globalization process, today information system developing are constantly being applied to wide areas of the economy. They are responsible for increase productivity quality and efficiency of a number of sectors. The emergence and rapid expansion of he information supper high way has brought to the door of people all over the would which has become a vital factors in daily decision making. Demote areas around the would are today covered by the communication range through technological advances in cyber space, in the computer and telecommunications field. This has serous implications for how business is done would- wide. Individuals and organization are now realizing that they do not have to be physical present in any particulars location in order to transact business.

The promotion of the fact that technology, managers can reach any part of the would from any given location. The manager can reach any part of would in just a little time. the integration of functions confers on information technology its ability to interpret preciously separate production functions. Information technology offers the opportunities for completely new ways of working through systems integration. Business however, involves more than information. The actual money of goods and services require more than information technology there fore combines with other process to define the scope of globalization. The pace of change in information technology is making the already observable growth in the interdependence of international reactions. These development covers not just economics, but also political and cultural fields

Global Interdependence Dynamics And Challenges.

Globalization on the basic of global interdependence. the current situation is that countries are now more interdependence than ever in the history of man. The structure of the would economy is such that resources recovery around the would has become initial for its growth and sustained global welfare. Structure of production and consumption are now structure of production and consumption are more dictated by global forces. No one country can clean that it can grow in isolation of the rest of the would. The would is witnessing a significant level convergence in development strategies as capitation gains acceptance in countries which up to recently had adopted central planning. The its successful penetration into part of the would hitherto considered hostile territories has created new structure for the would economy. The most glaring evidence of this current effort at spring massive flow of capital into Russia by the would bank, IMF an European countries.

The central planning has been abandoned in the former society anion and in Eastern Europe, making then fertile ground for capitalist expansion, in the face of policy failures through out lat in America, south Asia and the middle East, countries are reversing policies of carpool substitution designed to prevent the need trade, most country now accept the need to increase competitiveness in the would market as a means of sustaining growth. The pressure around. The would is for increase trade and opening up of previously closed economics. The emerging global structure of production requires free market, private capital based system. This development is most apparent in the area of trade politicizes since the mid- 1980s efforts at encouraging trade liberalization around the would have been yielding results. A large number of development country have reported unilateral globalization measures to the General Agreement on tariffs and trade(GATT).many have joined GATT, and more are in the process of joining its successor the would trade organization. Thus while in the past only the developed countries at different stages of development are presently actively involved in efforts at trade liberalization, although the process is still being easily dominated by industrial countries it has gained the interest of most countries. The process has been given a further push by the completion of the arguer round and with the enlargement of the north American free trade agreement (NAFTA) and the Europeans union

Dynamics Of Globalization

We have observed the changing structure of the world economy which has facilitated the growing trend of globalization. New we should examine the dynamic of the system as manifested and the globalization is an organization now is whether globalization process. The question now is whether globalization is an organic part of a natural process of world development or whether it is manifestation of the dominance of an ideological position in a apparent domination of the world economic system by the western capitalist economics the logic of capitalist expansion leads to the creation of a global market in which western capital plays a pivotal role. Western capital seeking more profitable outlets needs the ingression of the world laconically the first step towards the present trend of globalization led by the developed countries of the world started with rationalization the intention of rationalization was to provide a common market to the exclusion of other.

It was to protect the interest of domestic capital with in the region and confer on it advantages that would make it stronger the compute around the world to thrive the requires stability and harmonization of laws common markets however seem to have raced their limits for western capital so increasingly the focus has shifted to regional block 5 collectively doing business with the outside world. Initially this process was seen as contradicting to the free trade doctrine preached by the western world themselves. But it has now become clear that it is a strategy for breaking into a group regional blocks often tend to encourage common laws which enables business once it established in one country to gain access to all other in the block. The fact today is that it help pushing for greater trade liberalization which in most eases means opening up of new market in developing countries for western capital and goods new regional blocks are emerging. The is a deliberate strategy by the industrialization world to maintain their rage money over the new world order. This process of globalization has fundamental implication for the developing countries who on off the one hand are being asked to open while on the other find the world market place impossible to penetrate.

Globalization is a process of intensified interdependence which makes it impossible for any one country to isolate itself and expect to develop. The argue is that globalization makes it possible for all nation to benefit form interdependence entails amplified risk and uncertainty.

One major challenge to all countries but particularly developing countries within the context is how to manage this risk and handle the uncertainly.

The Challenges Of Globalization

We are all faced with age-old concern are rich countries getting richer while the poor getting poorer. And what is the role international integration in allowing the poorer countries to catch-up.

Globalization is a process of intensified interdependence which makes it impossible for any one country isolate itself and expect 60 development the argument is that globalization make it possible that all national to benefit form interdependence is maintained in the increasing economic linkage among countries through trade and financial flow. It has however been argued that interdependence entails amplified risk and uncertainty.

One major challenge to all countries but particularly developing countries within this context is how to manage this risk and handle the uncertainty we might conclude that companies are doomed whether they stay at home at home or go aboard. But companies selling in global industries have no choice but to internationalize their operations.

A global industries have is one in which the strategy positions of competitors in given geographic or national market are affected by their overall global operating in more than one country. Against research and development production marketing and financial advantages in its costs and reputation that are not available to be purely domestic competitors.

The global company sees the world as one market. It minimizes the importance of national boundaries and raises capital sources material and components and manufactures and components and its good where if it can do the best job. For example foods “world trust” brazil and imported to the united state for sale. Thus global firms gain advantage by planning operating and coordinating their activities on a world idea basis.
Because firms around the world are globalization at a rapid arte domestic firms in global industries must quickly before the window closes on them this does not means that small and medium size firms must operate can practice global niche mar ship but the world is becoming smaller and every company operating in a global industry whether large or small must access and establish its place in world markets.


1.2 Statement Of The Problem

Marketing operates within a dynamic global environment. Severe decades calls upon marketers to think freshly about their marketing objectives and practice. Firms banks inclusive are in era of complex marketing on their armcharire waiting for customers had gone. A company must be up to date technology and dynamic to environment factors.

Rapid changers can quickly made yesterdays winning strategies out of date e.g. general motors ears RCA. Each failed to understand its charging market place.

Today’s companies are wresting with increase global competition environmental define economic political and social problem etc.

However this study is embraced upon in order to find a lasting solution to certain global problems such as.

  1. How can bank render an effective and efficient banking services
  2. To know the effect of globalization has on the service industry.
  3. Whether it cause increase in customer patronage
  4. How banks are trying to build customer loyalty

1.3 Research Questions

This project will address the under listed issues.

  1. What are the effects of globalization on service industry?
  2. Is the service sector efficient and accurate with the adoption of modern equipment?
  3. What impact does the adoption of globalization have on profitability and customers satisfaction?
  4. How effective is cash flow around the global.

1.4 Hypothesis

Simply states in a testable form the relationship between independent and depend variables it is a point to know how the variable could be measured. It is stated in statement force. E.g motivation increase productivity hypothesis to be tested are.

  • Ho: That globalization has no effect on service industry negative
  • Hi: That globalization lead to efficiency in on service industry positive

In hypothesis we allow the system give it own result without any prejudice


1.5 Scope Of The Study

The research is basic on the effect on globalization on service industry. How it affects their efficiency accuracy and transfer of skills


1.6 Significant Of The Study

The relevance that this study will have is that firms must become customers oriented and markets driven in all that they do. It is not enough to be products or technology driven too many firms still design their products without customers input only to find them rejected in the market place.

More so the whole world are witnessing the era of unity and harmony (main economically) around the global. Further more the study will put more light on globalization it will enlighten those firms that are not up to date in modern technology also to contribute to the body of knowledge on marketing in the general global economic activities. Thus it can be used to serve as a frame work an reference point for other researchers.


1.7 Limitation Of The Study

The financial requirement of the research work coupled with the imitated time will serve as a limiting factors also the assumption that management to be easily assessable and in giving sensitive information regarding their company because of their suspicion of industrial competitiveness and security


1.8 Definition Of Terms

Various terms have been used to refer to marketing activities that take place on more than one country. In this work there are some world that are technically used. Therefore, the researcher wants to give the meaning so that all will benefit form the study.

Marketing:

As a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Service:

A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result and the ownership of anything.

Information:

The act of passing messages to one another

Technology:

The systematic application of knowledge to practical tasks in industry
Globalization involving the whole world global “warfare” comprehensive total

International marketing:

Refers to marketing activities in one or more countries out side of the domestic base of operations. Transactional and global management of marketing management attempts to ordinate and integrate operations across national boundaries so as to achieve potential synergies on a global scale.

Global Niche Strategies

While global segmentation strategies to leverage competitive advantages across country markets. Global niche players look for opportunities in multiple national markets that are not covered by other major competitors. Although global niche strategies do not appear to be very common as local nationally focused companies often fill niches such a strategy can provide an effects compete in a market dominated by two or three competitor work wide Cadbury Schweppes for example has pursued a global niche strategy in the soft drink market in order to avoid entering in to direct competition with coca-coal and pesi-cola which dominate the cola market world wide.

Source
  1. Global marketing strategy by Susan P Douglas C Samuel Craig.
  2. The new Webster’s Dictionary of English language international edition
  3. Philip Kotler six edition
  4. Global marketing strategy by Susan P. Douglas Samuel Craig C Mcgram hill international edition marketing and advertising series pg.3
  5. Class note
  6. C.B.N guideline 200-editon.

Globalization Terms

Global Squeeze:
One world is the world today?

Global squeeze being with the premise that a new force called globalization is sweeping across the land scope of the industrial countries threatening the economic basic of their civilization. Although he international of the world economy has progressed for over a century.

The new force is responsible for over a century.

The new force is responsible for stagnation of real wages the wanderings of wage and income equality the splitting of the middle class and growing job insecurity.

SOURCE: The Nigeria bankers vision 2010.

1. Global Phobia:

On the other hand represent a smaller group that tries to inject a note of realism in the form of common sense economic analysis into the debate

2. The Dile Mma Of The Global:

Global can be seen as “ the modern metamorphosis of free trade global important criteria is corporate planning which employs a world wide perspective and in partially allocates resources such as management. Other personnel company specific technology business expertise and funds on a global basis and foreign direct investment either in manufacturing or service industries in more than two countries sources international marketing by Stanley Ruliwade.


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