ABSTRACT
This project work has
critically highlighted the compact of the Role of Banks International Trade in
Nigeria, the problems affecting the Role in Banks in international trade in
Nigeria have been identified and how they can be controlled is also includes in
the study and ways to solve them are inductive in the study. The work is
organized into chapters to easy comprehension and deduction. Chapter one deals
with the introduction, Background, statement of problems, purpose / objective
of the study, significance of the study, limitations of the study and the
definition of terms. Chapter two involves a review of related literature,
international trade, roles, risk factor in international trade, major problems,
trade restriction major and international trade problems. This chapter also
treat, the important of international trade, and some underline issues towards
the international trade problem in Nigeria. Chapter three deals with research
design and methodology, source of data, location of data method of data collection.
Chapter four involves summary of finding where we summarize everything in this
project. Chapter five examines the lapses and recommends some viable points (s)
that can also contribute to the image of the industry.
TABLE OF CONTENTS
CHAPTER ONE
Introduction
1.1 Background
of Study
1.2 Statement
of the problem
1.3 Objective
of the study
1.4 Research
Questions
1.5 Assumption
of the study
1.6 Scope
of Study
1.7 Significance
of the Study
1.8 Limitation
of the study
1.9 Definition
of
Terms
Reference
CHAPTER TWO
Review of Related
Literature
2.2 The
role of banks in international trade in Nigeria
2.1
Definition of banks and international trade
2.2
Types of
banks
2.3 Causes and problems of
banks role in international trade
CHAPTER THREE
RESEARCH METHODOLOGY
1.0 Source
of
Data
3.1
Location of
Data
3.3
Method of Data
Collection
3.4
Analysis of
Data
CHAPTER FOUR
2.0 Findings
Reference
CHAPTER FIVE
5.1 Summary
5.2 Conclusions
and Recommendations
5.3 Suggestions
for Further
Research
Bibliography:
CHAPTER ONE
INTRODUCTION
This project write–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 internal 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
prevent 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 as 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 these external
traders help to compound the general problems of international trade
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 fraudulent
acts 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 lending pattern for medium and long terms loans without adversely
affecting their liquidity 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 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 instruments that hold a
vital role in external trade and have 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 have 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
1. To
find out if commercial banks play any role in international trade in Nigeria.
2. To
find out if merchant banks play any role in international trade in Nigeria.
3. To
find out if development banks play any role in international trade in Nigeria.
4. To
find out if commercial banks play any role in international trade.
5. And
equally to find out if people’s bank play any role in international trade in
Nigeria.
1.4
RESEARCH QUESTION
1. What
role do commercial banks play in international trade?
2. What
role do merchant banks play in international trade?
3. What
role do development banks play in international trade?
4. What
role do community banks play in international trade?
5. 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.
1.9
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.
Department | Banking and Finance |
Project ID Code | BFN0253 |
Chapters | 5 Chapters |
No of Pages | 65 pages |
Methodology | Descriptive |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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