This study examined the effect of foreign commerce on Nigeria’s private sector development. The research population consists of 200 CBN, Uyo employees. The researcher utilized questionnaires as the data gathering instrument. Using a descriptive survey research design, this study was conducted. The study utilized 133 respondents consisting of economic consultants, policy officers, senior staff, and junior staff. The acquired data were tabulated and evaluated using straightforward percentages and frequencies.
1.1 Background of the study
According to Abebefe (1995), trade consists of the exchange of goods through market transactions. International trade is the exchange of goods and services across national boundaries between two or more nations. Samuelson and Nordhaus (2002) define international trade as the export and import of products, services, and capital among nations. International commerce encourages specialization and boosts productivity (Ingram and Dunn 1993, Samuelson and Nordhaus 2002, as cited in Samuelson and Nordhaus 2002), (Ezirim, Aloy, Okeke, Titus, Akpobolokerni and Patrick 20l1). Trade openness is defined as the orientation of the economy toward the outside or the inside. Outward positioning greatly capitalizes on prospects for international trade. While inward orientation refers to economies that are unable to capitalize on prospects for international trade. According to economic theory, open economies will result in higher economic growth, while closed economies will experience no growth. The essence of open trade was to protect and promote domestic production through the importation of capital goods at low rates, avert balance of payment problems, and increase the value of the Naira in order to expand the economy and alleviate poverty (Oyejide, 2001). The purpose of this study is to evaluate the influence of foreign trade on private sector growth in Nigeria.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, the rapid expansion of the private sector is hindered by the perceived disadvantages of international commerce. The primary objective of open trade was to promote national development, however the apparent influence on poverty reduction is elusive. It is anticipated that a liberalized trade system will alter relative factor pricing in favor of the more abundant factor. Therefore, more trade openness raises labor costs and raises the living standard of the populace, ultimately reducing poverty. If the re-allocation of factors is hindered, however, the anticipated benefits of freer trade may not materialize.
Since 1992, the rate of poverty appears to have increased. Poverty is regarded as falling below two-thirds of the average monthly household expenditure (Ajakaiye and Adeyeye, 2001). The poverty headcount index is the proportion of individuals living below this threshold. The challenge of the study is to evaluate the impact of international commerce on the development of the private sector in Nigeria.
1.3 PURPOSE OF THE STUDY
The primary purpose of the study is to analyze the impact of foreign commerce on the development of the private sector in Nigeria.
i.To determine the impact of foreign commerce on the development of the private sector in Nigeria.
ii To comprehend the effects of international commerce on the development of the private sector in Nigeria.
iii. To investigate the obstacles to private sector growth in Nigeria.
1.5 RESEARCH HYPOTHESES
The researcher formulated the following research hypotheses for the successful completion of the study:
There is no major impact of international commerce on the development of the private sector in Nigeria.
International commerce has a substantial impact on private sector development in Nigeria.
There are no obstacles to the development of the private sector in Nigeria,
H2: Nigeria’s private sector development faces obstacles
THE IMPORTANCE OF THE STUDY
The pursuit of international trade policy is motivated by the demand for a higher quality of life, economic progress, and expansion. The purpose of the study is to provide useful information to policymakers so that they may boost the economy with policies that promote international trade and raise the living standard of the populace.
SCOPE AND LIMITATION OF THE STUDY
The scope of the study is the effect of foreign commerce on the development of the private sector in Nigeria. The researcher faces a constraint that restricts the study’s scope;
a) AVAILABILITY OF RESEARCH MATERIAL: The researcher has insufficient research material, consequently limiting the scope of the investigation.
b) TIME: The time allotted for the study does not allow for a broader scope because the researcher must mix it with other academic activities and examinations.
Definition of terms
DEFINING INTERNATIONAL TRADE
International trade is the export and import of commodities, services, and capital across national borders or between nations.
DEFINITION OF TRADE TERMS
This is the exchange rate between the goods of one country and those of another.
The poverty line is considered to be two-thirds of the average monthly household expenditure.
TRADE OPENNESS DEFINED
Trade openness is defined as the orientation of the economy toward the outside or the inside. Outward positioning greatly capitalizes on prospects for international trade. While inward orientation refers to economies that are unable to capitalize on prospects for international trade.
CLARIFICATION OF INTEREST RATE
Interest rates are the rental payments borrowers make for the use of credit and the return lenders receive for parting with liquidity (CBN, 1997).
FINANCIAL PERFORMANCE DEFINED
This is the evaluation of a company’s financial returns or objectives using an evaluation method or financial indicators.
RETURN ON INVESTMENT DEFINED
The return on investment measures the effectiveness of a company’s capital utilization. This ratio is calculated by dividing net profit after tax by total paid-in capital.
CUSTOMER SATISFACTION DEFINED
surpassing customer expectations