Problems of International Trade. Case Study: Nigeria

3181 Words Jan 3rd, 2013 13 Pages
International trade is the exchange of goods and services among countries for money. This involves the importation and exportation of goods and services. Many countries in the world are faced with problems engaging in international trade successfully. However international trade is one of the major determinants of a countries economic growth. Ideally every country should export more goods and services than it import goods and service. This differs on the natural resources, technology and labour force.
Nigeria is Africa’s most populous country with a population of over 150 million people. It is one of the largest oil producers in the continent creating huge inflows of foreign income. Without question it holds enormous
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Free trade makes a great deal of theoretical sense, but it is ignored in practice by virtually all countries. Despite some obvious advantages, nations are in dined to discourage free trade instead of promoting it. The temptation to protect one's interests is the cause for this trade myopia.
Governments in many countries distort trade and welfare arrangements to gain economic and political advantages or benefits. They use a combination of tariff and nontariff methods. It is impossible to list all marketing barriers, because there are simply too many of them. And governments continually create new import restrictions or adjust the ones currently in existence.
Klare and Volman (2012) Compared Africa with the Middle East. Africa possesses a relatively modest share of the world’s petroleum reserves: about 9.4% of proven world reserves, compared with 61.7% for the Middle East. Nevertheless, the world’s major oil-consuming nations, led by the USA, China and the Western European countries, have exhibited extraordinary interest in the development of African oil reserves, making huge bids for whatever exploration blocks become available and investing large sums in drilling platforms, pipelines, loading facilities and other production infrastructure.
In the area of security Several African countries have also
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