ABSTRACT
This
research work titled “Globalisation: The Role of Multinational Corporations in Nigeria” was necessitated by the controversy
about the role of multinational corporations in Nigeria. Hence, this study will attempt to resolve
this controversy by determining their contributions to the econ9omic and
technological development of the country.
The
research work is divided into five chapters.
Chapter one introduces the topic under discussion. Here effort was made at giving a brief but
general history of globalization, the activities, operations and roles of MNCs
in Nigeria. The problem of the study was stated as well
as the objectives. Also in this chapter,
the research questions were formulated and terms defined.
Chapter two
reviews some literature of relevance to the study. Chapter three discusses research methodology,
where the procedure for data collection and analysis were stated.
The data
collected from the field were presented, analysed and interpreted in chapter
four.
Chapter
five is the concluding chapter. Here,
the findings of the study were highlighted and discussed. A summary of the
study was given, recommendation was made and a conclusion of the findings
drawn. The suggestions for areas of further study/research was made.
TABLE OF CONTENT
Title page ii
Certification iii
Dedication iv
Acknowledgment v
Abstract vi
Table of contents vii
CHAPTER ONE:
INTRODUCTION
- Background of the study 1
- Statement of the Problem 7
- Objective of the Study 8
- Research Question 9
- Research Hypothesis 9
- Scope of the Study 11
- Limitations of the study 11
- Significance of the study 12
- Definition of terms 14
References 14
CHAPTER TWO: REVIEW
OF RELATED LITERATURE
- The Concept of Globalization 15
- Brief History of Multinational Corporations in Nigeria 17
- Inducement factors into Multinational Corporations 21
- Entry Strategies into Multinational Business 22
- Environmental Factors affecting MNCs 22
- Globalised Economic Environment
- Social and Cultural Environment 26
- Political and Legal Environment 29
- Technological Environment 31
- Application of Managerial Functions in Globalisation of MNCs 31
2.7.1 Planning in the MNCs 32
2.7.2
Organisation of the MNCs 33
2.7.3 Staffing of
the MNCs 33
2.7.4 Controlling
in the MNCs 35
2.8 Management
Policies and Strategies of the MNCs 36
2.9 Benefits
of MNCs to host countries
36
2.10 Criticisms
of Globalisation and MNCs in Nigeria 38
2.10.2 Summary of
the Review of the Related Literature 40
References 43
CHAPTER THREE:
RESEARCH METHODOLOGY
- Introduction 45
- Research Design 45
- Population of the study 46
- Sampling procedure 47
- Sources of Data 48
3.5.1 Primary Data 48
3.5.2 Secondary data 49
3.6 Data Presentation and Analysis 49
3.7 Validity of
Data 49
3.8 Reliability
of Data 50
References 51
CHAPTER FOUR:
DATA PRESENTATION AND ANALYSIS
4.2 Presentation of Data 52
4.3 Interpretation of Data 53-60
References
61
CHAPTER FIVE:
SUMMARY OF FINDINGS,
RECOMMENDATIONS
AND CONCLUSION
5.2 Discussions 63
5.3 Recommendations 65
5.4 Conclusions 67
5.5 Suggestions for further studies 68
Bibliography 70
CHAPTER ONE
INTRODUCTION
1.1 CONCEPT
OF GLOBALISATION
Globalization refers to the process of the intensification of economic, political, social and cultural relations across international boundaries. It is principally aimed at the transcendental homogenization of political and socio-economic theory across the globe. It is equally aimed at “making global being present worldwide at the world stage or global arena”. It deals with the “increasing breakdown of trade barriers and the increasing integration of World market (Fafowora, 1998:5). In other words, as Ohuabunwa, (1999: 20) once opined: Globalisation can be seen as an evolution which is systematically restructuring interactive phases among nation
ns by breaking down
barriers in the areas of culture, commerce, communication and several other
fields of endeavour.
Globalisation, according
to Ohiorhenuan (Ibid), is the broadening and deepening linkages of national
economies into a worldwide market for goods and services, especially capital.
As Tandon (1998B: 2) once opined, globalisation seeks to remove all national
barriers to the free movement of international capital and this process is
accelerated and facilitated by the supersonic transformation in information
technology. It is principally aimed at the universal homogenisation of ideas,
cultures, values and even life styles (Ohiorhenuan 1998: 6) as well as, at the
deterritorialisation and villagization of the world. Expanding this argument, Gordimer (1998), argued, that it is principally concerned with
the expansion of trade over the oceans and airspace, beyond traditional
alliances which were restricted by old political spheres of influence. Thus, it
presupposes the “making or remaking” of the world (Diagne and Ossebi. 1996) by
creating “a basic change in the way in which major actors think and operate
across the globe” (Biersterker, 1998). In other words, it connotes “the rapid
expansion through giant multinational companies of capitalism and their “blood
sapping principles” of “liberalisation”, “commercialisation”, privatisation”
and “undemocratic and property-based democratisation” to several areas of the
world including where it had hitherto been resisted or put in check” (Madunagu,
1999, 53).
Multinational Corporations
Oxford Dictionary of economics (2003:310) defines
Multinational Corporations as a firm conducting business in more than one
country, through branches or subsidiary companies. The Penguin Dictionary of
economics (1980:315) defines Multinational Corporations as a company, or more
correctly, an enterprise, operating in a number of countries and having
production or services facilities outside the country of its origin. A commonly
accepted definition of an MNCs is an enterprise producing at least 25 per cent
of its world output outside its country of origin.
The ways Multination
Corporations are conceptualised have important implications for the claims of
stakeholders. This is more so in view of the growth of huge multinational
corporations (MNCs) worldwide and the implications of their operations in
different jurisdictions. This work focuses on non-shareholding stakeholders,
employees and the community in particular; whose position in relation to the
corporation as this work demonstrates is
largely dependent on the conception of the corporation. The work examines the
role of MNCs in Nigeria
against the background of the dominant theoretical construct of the corporation
in the country. The work argues that because of their enormous economic power,
which has been a subject of considerable debate, the dependency of the economy
of the host country on their operations, their shareholding structure and
because of the nature of the resources they exploit MNCs cannot justifiably be
construed as private actors. This research further shows the consequences of
the conception on corporations whose home states is in the E.U and therefore
are largely construed as social institutions but when operating in an
environment like Nigeria
assumes a different role.
The Multinational Corporations take its principal decision in
a global context and thus, often outside the countries in which it has
particular operations. The rapid growth of these corporations and the
possibility that conflict might arise between their interest and those of the
individual countries in which they operate have provoked much discussion in the
recent years. While Multinational Corporations present some legal and
organizational problems, many firms find it worthwhile. It brings them closer
to the suppliers and the markets, they also take advantage of international
difference in resource and cost, the benefits and development can be spread
over wider markets, and it gives a wider spectrum of risks. Multinational operations also
improve their bargaining position in negotiating with national suppliers’
government, and trade unions.
During the
past three decades, the would had witnessed the growth of an economic
phenomenon. The Multinational Corporations (MNCs), hick and through one of exporting,
licensing, franchising, joint venture, foreign branch or wholly owned
subsidiaries.
While the MNCs
is not new, its importance, power and consequences have come to be appreciated
fully only recently. For instance, consider the role of Multinational oil
companies in the economic systems of the world in general and Nigeria in
particular. According to Megginsion, et al (1988:603), “MNCs are more than just
giant business firms, for they tend to have social, and even political effects
as well as economic ones in their host countries: Kinard (1985:490) could not
agree with this view more, when he said that, huge corporations like MNCs, play
not only economic roles but also, important political and social roles in their
environments.
For obvious
reasons multinational business has its own peculiarities. It involves different
countries. Hence, it is influenced by different environmental factors in these
countries. Therefore, international business management or multinational
management is equally peculiar and challenging. Multinational manager have to
formulate or device separate policies and strategies to survive in different
environments.
Though it is
the responsibility of a country’s government, like that of development, but
government’s resources more often than not, appear inadequate to discharge
those obligations, effectively. And Megginson, et al (1988) maintain that “MNCs
are more than just giant economic units. In many cases, they are nearly a
form of government, richer, and more
powerful than some of the countries in which they operate. For example in a
typical year, the combined sales of Exxon, general Motors and Royal Dutch and
Shell Group exceeded the GNP of most industrialized nations of the world”.
Hence, it is not out of place, for society to expect and press these MNCs to
assume a key role in the socio-economic development of their host countries. At
least if for nothing else, they should endeavour to live up to their corporate
social responsibilities.
These social
expectations and demands and other intricate issues in multinational business,
as stated earlier; pose great challenges to the management of MNCs. For
example, any disruption to their operations as a result of crises between the
company and the host country/community, like the Ogoni-Shell dispute, will be
detrimental to especially the interest of the company and the other interest
groups. Therefore, multinational managers have to strike a rather difficult
balance between meeting societal expectations and demands.
Multinational
corporations have been praised by many people as agents of social, economic and
technological development of their host countries. On the other hand, however;
other people feel and regard MNCs as instruments of exploitation in their host
countries. These two views are based on the extent to which the MNCs have met
the societal expectations and based on the extent to which expectation and
demands, in their environments.
There are many of such corporations operating in Nigeria. They are mainly American, European, or Asian corporations and they are into high technology areas such as Agriculture, construction, Mining, Manufacturing etc. some of them are Cocoa-cola, Mobil, Julius Berger, Pfizer, Shell ITT, Glaxo, Klm etc. Expectedly, there are diverse opinions regarding their impact or role in the country. Therefore, this research intends to present a clearer picture of their actual role Nigeria.
STATEMENT OF THE PROBLEM
GLOBALIZATION: THE ROLE OF MULTINATIONAL CORPORATIONS IN NIGERIA
