CHAPTER ONE

1.1 BACKGROUND OF STUDY

Globalization has benefited the advanced countries at the expense of the less

developed countries. To the Marxists this is not surprising as they hold that

globalization is a product of the capitalist. They argued that the capitalist system

epitomizes exploitation it involved class conflict and it is a system of unequal

relation marked by an unequal exchange. It is a system where one group must

benefit at the expense of the other. Thus globalization being of such a system is

bound to be exploitative. Several scholars has traced the origins of globalization in

modern times others trace its history long before the European age of discovery

to the new world. Some even trace the origins to the third millennium BCE. Since

the beginning of the 20

th

century the pace of globalization has intensified at a

rapid rate especially during the post cold war era. The term globalization has

being in use since the mid-1980’s and since the mid 1990’s.However the main

originators of globalization can be traced to the classical economists that showed

that trade can be beneficial to their nation. Globalization developed through the

Pre-capitalist era to the period of industrial revolution in England and evolved into

what we are seeing today. The above quote underscores the government

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especially in developing countries to know the manner they pursue domestic

economic policies. They should gear all the effort towards restructuring their

economy to global economic changes in such a way that they will benefit from

globalization.

In 2000 the international monetary fund (IMF) identified four basic aspects of

globalization: trade and transactions capital and investment movements

migration and movement of people and the dissemination of knowledge. Further

environmental challenges such as climate change cross-boundary water and air

pollution and over fishing of the ocean are linked with globalization. Globalization

processes affect and are affected by business and work organization economics

socio-cultural resources and the natural environment. The most

Drastic evidence of globalization is the increase in trade and the movement of

capital stocks bonds currencies and other investment from the period of 1950-

2001. The volume of world’s export rose by 20 times and by 2001 world trade

amounted to a quarter of all the goods and services produced in the world. In the

early 1970’s only $10 billion to $20 billion in national currencies was exchange

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daily by the early part of the 21

st

century more than $1.5 billion worth of yen

Euros dollars pounds and other currencies were traded daily to support the

expanded levels of trade investment which is as a result of globalization.

1.2 STATEMENT OF THE PROBLEM

One could say that the crises in Nigeria’s tertiary institution arising from

corruption mismanagement as well as the devastating effect of the defunct

structural adjustment. The present socio-economic and political condition of

Nigeria on ground suggests that we will have a long way to go in the global

competition of the 21

st

century. Also the Nigeria economy is made weaker by

mono-cultural dependence and unfavorable terms of trade in its export trade as

well as excruciating debt burdens. This problem can really make Nigeria not to

benefit from the ongoing globalization process. The challenge is for Nigeria to use

their enormous resources to build a strong consistent self sustaining economy

which will be competitive in the world market.

It is therefore questionable whether Nigeria has been able to reap the benefit of

globalization due to these weaknesses.

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1.3 RESEARCH QUESTIONS

1) To what extent will globalization affect our economy and relation to other

countries?

1.4 OBJECTIVE OF THE STUDY

1) To determine the impact of globalization on industrial growth

1.5 HYPOTHESIS OF THE STUDY

1) Globalization has no impact on the industrial growth of Nigeria

1.6 SCOPE OF THE STUDY

The study covers the growth of the Nigerian industrial sector and it has been

attested by globalization from the period of 1980-2010.

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