CHAPTER ONE
1.0 INTRUDUCTION
Globalization remains one of the most controversial subjects of our time. Several authors and ideological applications. Globalization is the close interaction between national economics through trade investment and capital flows made possible by technological development and advancement in telecommunication world to a global village. Globalization has evolved over the years but its rapidly intensified after the end of the world war.
According to Giddens (1990) Globalization can be defined as “the intensification of world wide social relation which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice-versa, irrespective of the ongoing controversy and measures of ambiguity in its uses, it often depicts the transformation of the relations between states, institutions groups and individuals, it describes the growing economic, political, technological and cultural linkages that connects individuals, business and Government around the world.
Globalization slowed during the world war as a result of protectionist policies applied to defend ideological interest by the major protagonists.
The main driving forces of this process are technology, policy and competition and its subordinate domestic economics to global market conditions and practices. Developed nations are the beneficiaries of globalization as their share of world trade and finance has expanded at the expenses of developing countries. Thus, the process has worsened inequality between the world’s region and providing in the developing world. Nigeria has not benefited from globalization due to mono culture export, inability to attract increased foreign investment and huge indebtedness. But globalization can be domesticated in the county through diversification of exports debt reduction and expanded development co-operation with other countries. The Nigerian states also need to be strengthene as a bulwark against the dictates of foreign capital. All these accomplished, Nigeria could join the league of countries enjoying the benefits of Globalization.
1.1 BACKGROUND OF THE STUDY
Globalization is a system that confers benefits and posses challenges and risks to countries across the globe and has gained momentum from the last quarter of the twentieth (20th) century. It is the intensification of cross border trade and increased financial and foreign direct investments flows among nations, promoted by rapid advances in and liberalization of communication and information technology. Technology, polling and competition are the forces during globalization. This is attested to, for example, by advances in computing technology, which enables traders to meet their demands for financial instruments such as swaps and future with relative ease. Globalization constitutes a mega trend in global political economy and has assumed a new phase in contemporary international economic relations, given the merged socio-political and economic transformation as well as the technological economic transformation as well as the technological advancement in communication, information transportation etc. The process seems to be irreversible. Nations, states have indeed consistently intensified efforts towards engaging in business across national borders and constructing production and distribution network on a global production and distribution network on a global scale.
The international institution that overseen world trade and finance like the IMF, the world Bank, WTO play an increasingly important role in this era of globalization. Globalization has both negative and positive impacts, amongst the negative impacts are the rapid spread of diseases, crime, illicit drugs, terrorism and uncontrolled migration, which is one of the greatest problem facing Nigerian economy. The problem became more pronounced and aggravated by the structural adjustment programme (SAP) and more recently by globalization. Given the low level of industrialization and the SAP. Induced under utilization of industrial capacity in the Nigeria economy, globalization has translated into the restriction of Nigeria to primary production even with this the price of primary commodities is extremely determined. This transport Nigeria into a powerless situation where she lacks direct control over the crisis in her economy because her hands are tied by the terms and dictates of globalization.
The most drastic evidence of globalization is the increase in trade and the movement of capital stocks, bonds, currencies and other volume of investments from the period of (1950-2001). The volume of worlds export rose by 20 times and by 2011, 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 were exchange daily, by the early part of the 21st century.
More than $1.5million worth of ten, Euros, dollars, pounds and other currencies were traded daily to support the expanded levels of trade investment which is as a result of globalization.