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.
TABLE OF CONTENTS
1.1 Background of the Study
1.3 Purpose of the Study
1.4 Scope of the Study
of the study
1.7 Definition of Terms
impact of foreign direct investment on the growth of the host society
Direct Investment; how Ready is Nigeria
of Foreign Direct Investment
Investment and Welfare
3.1 Research Design
3.2 Area of Study
of the study
and Size Determination
of Data Collection
of the Instrument
of the Instruments
of Data Collection
Distribution and Retrieval
of Data Analysis
Data Presentation and Analysis
4.1 Data Presentation and Analysis
4.2 Summary of Results
conclusion and Recommendations
of the Research Findings
for Further Studies
1.1 BACKGROUND OF THE STUDY
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.
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.
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.
the purpose of this classification such is recorded as FDI if the share
acquired involves more than 10% of the outstanding common shares of the
this research and generally, Foreign Direct Investment is classified in the
context of Multinational Corporations (MNC).
The MNC is sometimes referred to as Multinational Enterprises (MNE) is
Transnational Corporations (TNC) or Transnational Enterprises (TNE).
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.
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
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
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.
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.
issue of contribution to development through social responsibility by the
business enterprise has become a topical issue in management decision and is
negatively favoured in these host societies.
have rounding argued that there has been gross neglect and lack of development
focus in their place or communities. It
is good to discuss the fact that some laudable developments have been directly
felt by these host societies in terms of revenue, employment technology
transfer and other benefits to the government.
It is a fact that Nigeria is a developing country and have the same
peculiar characteristics with other developing nations of the world such as low
standard of living with low savings and investment and lacks managerial know
how. This has placed Nigeria in a guest
for resources from other developed nations viz-a-viz international business
is also right to say that MNC’s like other business ventures has the objective
of profit maximization as their aim.
From the foregoing, this research work places premium on the critical
evaluation and examination of the impact
of foreign direct investment (MNC) activities in the Nigerian economy using
Enugu Zone which comprises Enugu North, Enugu South, Enugu East and 9th
Mile Corner on a bench mark. The
prospective here is primarily managerial and economic i.e. the dissension
focuses on the important part in the overall evaluation so, they are discussed
along with the above mentioned factors.