CHAPTER
ONE
1.0
INTRODUCTION
This project writ – up, “The role of
Banks in international Trade”, is written to provide a guide sufficiently
instructive in scope to meet the need for Banks, Economist in International
Trade.
Among the important topics examined
are if there are various relationship, role that exist between banks and
international trade in Nigeria, nature of international economics,
international trade, difference between international trade and internal trade,
problems facing international trade in the banks sector.
1.1 BACKGROUND OF
THE STUDY.
Nigeria before and even since the
British Colonialist of our country has been engaged in international trade. But
it was obviously spelt out during the British Colonialist that was in the 15th
century termed legitimate trade.
This was until 1960 during which
Nigeria got its independence. This means that, Nigeria was no longer controlled
solely by the dictates of the British Government Ever since then legitimate
trade to the Nigerian was changed to international trade of which Banks has a
major role to play in it.
Nigeria since the oil boom in the
early 70’s has been enjoying Nigeria and across the country. Diversifying its
economy.
Apart fro international trade, and
as a result of climatic factors, Nigeria needs international trade to
diversify, accelerate its economic development in the country.
International trade ensures export
expansion and import contraction coupled with the fact that it stimulates
foreign exchange earnings, international recognition and the provision of
employment opportunities for the teeming population.
International trade is synonymous
with the production of goods and services for the benefit of trade across the country.
Thus we have the banking institution, the food processing export/import trade
and the sugar, tobacco export/import trade and that of petroleum export trade
is not left behind. Therefore, international trade or external trade is a trade
between two or more countries.
Example. Trade between Nigeria and
USA as well as Ghana, India, Britain, Japan etc. trade between two countries is
called bilateral trade, while trade between many countries is called
multilateral trade.
International trade does not mean
the exchange of goods and services within a country. The exchange of goods and
services among the people of the same country is called home or internal trade.
Example, all trading activities which take place within Nigeria in a home or
international trade.
External trade is established for
the purpose of stabilizing nation’s economy standard if living.
External trade has been proved
beyond doubts as very important for a nation’s survival therefore it is peevant
that we explicably manifest how the role of banks can be employed for the
development of these trade. In doing this, we will limit our study to short and
long term scale institutions which are very important to the economy.
Short term scale institutions ad
defined by the central bank credit guidelines is, any service enterprise whose
annual business turnover does not exceed N500,000.00 (five hundred thousand
naira).
There is no definition for long term
scale institutions as these did not attract the direct emphasis of the CBN.
The role of banks in international
trade development of Nigeria, could be seen through the various services which
these banks provide for the sustenance of international trade in the country.
These services include the provision
of capital for these exporter/importers in the business inform of loans, such
as short term loans, medium and long term loans, which the traders could use to
finance their business goals.
The banks also provide overdraft
facilities, which are necessary to finance the working capital of the business.
An overdraft could be defined as an
arrangement whereby the banks allow their customers to over-draw his account up
to a credit position at the end of the period, while short term loans refer to
loans granted for periods between one to five years. Then medium and long term
loans are granted for periods between five to ten years, even ten years
respectively.
Apart from granting loans and over
drafts facilities, there are still other roles which banks could play in
international trade development in Nigeria. These roles include professional
advice, opening of documentary letters of credit (L/CS), bills for collection
and negotiation/open account and bills of exchange, foreign exchange example
travelers cheques and foreign currencies, information on trade and exchange
restrictions, collection and transfer of funds status enquires, etc. above all
the determination of the actual external funds required by an export/import
borrower. There are accepts of such services which help international trade
growth or expansion.
It is not for fetched that the
exporters/importers of international trade suffer their own bank problems,
which should be analyzed and solved to ensure international trade development.
These problems such as the problem of corruption in banking parastatals,
obtaining capital from and operational problems which are coursed by the
dictates of the Nigeria environment and society.
The irrational problem of manpower
requirement and the poor knowledge of trade across of these external traders
help to compound the general problems of international development of which
bank services can be gainfully employed for the purpose of solving them.
Addition to the problems is lost of
trust ship among the members or cooperators of the trade 4, 1, 9, problem among
members.
In all, these problems the worst is
the problems of unstable political contradictions.
These problems should be totally
exterminated by the government, and the society entirely to ensure the steady
growth of this important sector of the business of the economy.
It has been noticed that the level
of banks institutions financing has been vary poor compared with is obtained in
developed nations such as America (USA), Germany but few. The central bank of
Nigeria (C. B. N) should step up their moral suasion policy so as to make these
banks especially the commercial banks to increase the level of their financing
of exporter/importers members.
In increasing this level of their
financing emphasis should be placed on medium and long term loans to enable these
traders concretize their investments for better results in its outputs; though
the commercial banks borrow short from their deposits, the commercial banks who
also declare excess profits at the end of each year should expand a lading
pattern for medium and long terms loans without adversely affecting their
liquid ratios.
With the funds available from the
banks, international traders should be made to judiciously invest them and with
other important a sound, solid firm and concrete foundation must be laid for
the international development of the country.
1.2 STATEMENT OF
PROBLEM
The Nigerian Banks plc is a pillar
in the roles contributed to international trade in Nigeria. The Nigerian banks
have various established institutions that enhance the growth of international
trade.
Commercial banks, merchant banks,
development banks, are one of the banks instrument that hold a vital role in
external trade and has been branched all over Nigerian states. The contribution
of the above banks to international trade has been a satisfactory type. Most
importers and exporters dances to tune of these banks.
Why has these very banks so
appetizing to the society and the world at large? Is the success as a result of
the banks efforts in it’s operations?
Why do importers/exporters prefer it
to other financing institutions?
1.3 OBJECTIVES OF
THE STUDY
- To find out if commercial banks play any role in international trade in Nigeria.
- To find out if merchant banks play any role in international trade in Nigeria.
- To find out if development banks play any role in international trade in Nigeria.
- To find out if commercial banks play any role in international trade.
- And equally to find out if people’s bank play any role in international trade in Nigeria.
1.4 RESEARCH
QUESTION
- What role do commercial banks play in international trade?
- What role do merchant banks play in international trade?
- What role do development banks play in international trade?
- What role do community banks play in international trade?
- What role do people’s bank play in international trade?
1.5 ASSUMPTION OF
THE STUDY
It is assumed that in this research
the secondary data collected is correct and reliable.
The procedure and method used is
correct and reliable.
1.6 SCOPE OF STUDY
Area of coverage
The role of banks in international
trade in Nigeria .
Banks method of contribution to
international trade in Nigeria.
Why international trade in Nigeria?
Advantages of international trade in
Nigeria.
1.7 SIGNIFICANCE
OF THE STUDY
Today, the government parastatals,
banking sectors and the society are all hands on deck to enhance the
international trade development and growth of Nigerians economy.
The research study will be of high
benefit to banking sectors, importers/exporters and to the society in general
to embark of the effectiveness of their business, which inturn will change of
the society. Also the study will determine the census and problems of banks
role in international trade in Nigeria and thereby should be taken as a
corrective measure.
Through this investigation,
therefore, the banks and the society will then know their weak points and
willingly adopt measure aimed at enhancing it’s business effectiveness.
The government will be in the
position to adopt the right strategies to enable the society achieve it’s
business expectations or goals.
1.8 LIMITATION OF
THE STUDY.
Limitation encountered by the
research work is finance and incorporation attitude of respondent: – Some
respondents were out rightly hostile and very impatience to entertain genuine
requests. There was also bureaucratic bottle – neck that some official
documents. However, these constraints did not destroy the ingredient of this
research.
1.9 DEFINITION OF
TERMS.
(a) International
Trade: As described by the Author, Norbert M Ile in his
published test “Economics of business studies” (1999, P. 278) defines an
international trade or external trade as “a trade between two or more
countries; it is the exchange of goods and services between two or more
countries”.
(b) Banking
Institution: We can define a bank as any organization that
handles people’s money. It is a dealer in debts, but indebtedness has a
correlation to wealth and hence, a bank can be described as a liquefier of
wealth.
(c) Role: It
is defined as “actors in a play; persons task or duty in undertaking.
(d) Foreign
Exchange: This is a process by which a country
exchanges it’s goods/services to another country’s goods/services.
(e) Overdraft:
This is a system whereby a customer drawns more money then he has to his credit
in a bank.
(f)
Economy: It is a system of control and management of the money goods and
other resources of a society.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following
instructions and information if you will like to order/buy our complete written
material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount
into our bank Account below, send the following information to
08140350866 or 08058580848
(1) Your project
topics
(2) Email
Address
(3) Payment
Name
(4) Teller Number
We will send your material(s)
immediately we receive bank alert
BANK ACCOUNTS
Account Name: AKINYEMI OLUWATOSIN
Account Number: 3022179389
Bank: FIRST BANK.
OR
Account Name: AKINYEMI OLUWATOSIN
Account Number: 2060566256
Bank: UBA.
OR
Account Name: AKINYEMI OLUWATOSIN
Account Number: 0042695344
Bank: Diamond
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria,
people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided
“table of content and chapter one” of all our project topics and materials in
order to convince you that we have the complete materials.
Secondly, we have provided our Bank
Account on this site. Our Bank Account contains all information about the owner
of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank
Account as a means of payment, because Bank Account contains the overall
information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our
materials on this website WORD-TO-WORD. These materials are to assist, direct
you during your project. Study the materials carefully and use the
information in them to develop your own new copy. Copying these materials
word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and
we will not be held responsible for it. If you must copy word-to-word please do
not order/buy.
That you ordered this material shows
you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08058580848, 08140350866
YOU CAN ALSO VISIT:
www.achieverprojectmaterial.com
www.acheiversprojectmaterials.com
www.achieversprojectmaterials.com
www.naijasplash.com
www.achieversprojectmaterials.blogspot.com
www.achieverprojectmaterial.blogspot.com
www.acheiversprojectmaterials.blogspot.com
www.archieverprojectmaterials.blogspot.com
www.acheiversprojectmaterials.blogspot.com.ng
www.archieverprojectmaterials.blogspot.com.ng
www.achieversprojectmaterials.blogspot.com.ng
www.achieverprojectmaterial.blogspot.com.ng
www.achieverprojectmaterial.wordpress.com
www.achieversprojectmaterials.wordpress.com
www.acheiversprojectmaterials.wordpress.com
www.archieverprojectmaterials.wordpress.com
No comments:
Post a Comment