The Effect of Foreign Trade on Tthe Nigerian Economy

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THE EFFECT OF FOREIGN TRADE ON THE NIGERIAN ECONOMY Introduction Everyday, the need for foreign trade is on the increase as the needs of man is unlimited (Adams Smith).This is visible in the rise for consumer goods and services throughout the world especially with the increase in world population of over 6 billion people. Man with his advancement in social interaction and technology is able to visualize and perceive in his mind what he desires. This was obvious with the industrial revolution where production demand increased. With the location of raw materials in different geographical zones making them ubiquitous in some areas and scarce in others, the demand for certain goods is on the increase, which gave rise to the concept of…show more content…
1. Exposure to risk since they are transported either through the road, air, rail and sea. 2. Poor intermodal transport network in developing countries such as Nigeria. 3. Poor government policies on trade and industrialization. 4. Corruption and unaccountability. 5. Insurgence of terror groups globally acts as a threat to foreign trade. 6. Late payment for goods which results to demurrage and high port charges. 7. Language barrier slows foreign trade. FOREIGN TRADE IN NIGERIA The Nigerian economy before independence in 1960 was predominantly an agricultural economy. With a geographical land mass of about 923,768sqkm, Nigeria is located along the Atlantic coast line. The location of natural resources in almost every part of the country has attracted trade domestically and internationally.
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