The Effect of Globalization on International Trade: The Nigerian Paradox

Abstract

There is an increase in availability of goods and services that can be traded at the global market. There is also a significant increase in transport efficiency, due to innovations and improvements in the modes and infrastructures, bringing about ease and improvement in transferability of commodities. This paper seeks to look at the impact of globalization on international trade and how it affects the Nigerian economy. This research reveals that Nigerian political leaders need to develop the political will to break away from total dependence on the international capital system whose predominant interest is to continue in their Neo-colonialism of the country. Since independence Nigeria has without success, experimented with various models, with the aim of achieving sustainable development. However, Nigeria still pursues policies aimed at the general improvement of standard of living of her citizens, and one of such policy is that of globalization which Nigeria has pursued vigorously in line with the demands of the International Financial Institution of the World Bank and International Monetary Fund (IMF). This work critically examines the effect of globalization on international trade and the apparent effect of same on Nigeria’s economy. The main feature of the current economic situations in the contemporary world system is globalization, which is led by a new age of Information Technology (IT), contrary to the history of humankind. Countries have continually intensified various efforts towards engaging in business across borders and distributing networks and production on a global scale. Therefore, with these trends of political, economic, social and technological forces, the world is becoming a ‘global village’. Consequently, this work recognizes the existence of a global environment that is deeply embedded in interdependency and the necessity for Nigeria to minimize the negative effects of globalization while tapping its inherent benefits for national development and economic growth.

 

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