CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The term "globalization" refers to the process of bringing together national economies through trade, investment, and other forms of financial activity. A global commercial and investment system open to all countries was one of the key goals of the allies after the end of World War II. These events, together with an anti-climactic end to World War II, helped to spur the growth of globalization. Some of the former communist republics in Eastern Europe were integrated into the Western Alliance, while others in Eastern Europe's former Soviet states were hurried toward marketization and democracy. Globalization, aided by a free market economy and liberal democracies, has become possible due to fast advancements in information technology. It's a fact (Olaleye, 2002).
There has been an increase in the volume of trade between emerging nations such as Nigeria, thanks to globalization. Countries are becoming less dependent on the global economy because of the continual growth in imports and exports.
1.2 STATEMENT OF THE PROBLEM
The global manufacturing business is becoming more competitive as a result of the vast expansion of global commerce. Nigeria's indigenous manufacturing sector has the challenge of competing with industrialized nations that are constantly improving and progressing in innovation and information technology thanks to globalization. Computers, telephones, televisions, and wireless forms of communication are now merging into telecommunication in order to create multimedia products and allow individuals in the developed world to communicate with one another, thereby improving manpower skills, production methods, efficiency, and the effectiveness of business organizations. Computers, telephones, televisions, and wireless forms of communication. Since then, the industrialized nations have been able to improve on all of these aspects thanks to globalization. By ignoring the lessons of globalization, indigenous industry will be progressively whipped into line by the globalization forces unleashed.
Because of this, a research like this one is needed to determine the impact on local manufacturing sectors of all of the aforementioned elements in order for them to be internationally competitive.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is to examine the effect of globalization on the development of domestic manufacturing industry with Dangote Flour Mills PLC as a focus. This, in order to achieve the above objectives, the following specific objectives will be our guide.
1. To examine whether the development of domestic manufacturing industries have effect on prices of goods and services?
2. To examine whether increase in the level of competition with globalization have effect on prices of goods and service?
3. To examine whether organization output' in, domestic manufacturing industry affect price?
4. To examine whether quality plays a role in the acceptability of goods and services of domestic manufacturing companies globally?
1.4 RESEARCH QUESTIONS
In order to achieve the objectives of this study, the following are the research questions:
1. Does the development of domestic manufacturing industries have effect on prices of goods and services?
2. Does increase in the level of competition with globalization have effect on prices of goods and service?
3. To what extent does organization output in domestic manufacturing industry affect price?
4. To what extent does quality plays in the acceptability of goods and services of the domestic manufacturing companies globally?
1.5 RESEARCH HYPOTHESES
To provide, answers to the research-questions the following hypotheses will be tested.
1. Globalization has impact on the performance of domestic manufacturing industries in Nigeria.
2. The development of domestic manufacturing industries has effect on prices of goods and services.
1.6 SIGNIFICANCE OF THE STUDY
A study of this kind is expected to make theoretical and practical contributions to manufacturing companies in Nigeria. Thus, Nigeria is the most populous black nation in the world and the effect of globalization on the country could be generalized for other countries in the sub-Sahara Africa, so the effect of globalization process on Nigeria has a determinant effect on other countries in Africa.
Also, it is hoped that this stud' will provide manufacturing companies an incite on how organizations, can cope in the ever-changing, turbulent business environment in developing countries and how organization activities can be organized in order to cope effectively with opportunities and trend in the business environment.
Also, how to overcome industrial or economic recession changes in social variables increase competition and technological advancement. In addition, it is hoped that this study will help the policy makers to see need to invest more in technology in a nation like Nigeria that encourages small and medium enterprises scale (SMEs).
This study is also expected to prove to scholars and imminent researchers, that it is possible to manufacture quality product in a developing nation like Nigeria with Globalization.
Furthermore, for Business administration student who aspires to become Managers manufacturing industries, it is expected that this study win expose them on how products can be advertised and distributed in the global village without stress and with less cost, thanks to globalization
1.7 SCOPE AND LIMITATIONS OF THE STUDY
The basic premise on which this study is based is the effect of globalization on the development of domestic manufacturing industries in Nigeria with Dangote Flour Mills Plc as a case study. The study covers representative numbers of the generality of the workers in the organization. No special consolidation is given to sex, age and Nationality in collecting data from the respondents.
The first set-back encountered in the course of carrying out this research is the time limitation. The Nigeria academic environment has been largely infected by irregularities and uncertainties and as such abnormal academic calendar.
Another key limitation was that of finance. Since I do not have a computer system. of my own I have to pay to get the research work typed out. Furthermore the fear of insincere response on the part of the respondents even when a questionnaire is administered on them.
1.8 DEFINITION OF BASIC TERMS
Globalization: Globalization could simply be described as the integration of national economies through trade investment and financial interaction
Manufacturing Industries: A manufacturing industry is an industry where goods are produced and they prepare what is known as manufacturing account. A manufacturing account is basically a list of cost relating to the production of goods (i.e. factory relation expenses).
Development: Is a process of improving the economy of a country by increasing the amount of business activities.
Technology Development: It is a process of using advanced scientific mechanism in an industry to improve it productivity.
Manpower: All the people who are available to do a particular job or to work in a particular place.
Management: Is the art and science of getting done through other people using both human and non-human resources.
Performance: The degree of efficiency and effectiveness with which organizational objectives are achieved. Thus efficiency and effectiveness are the determinants of performance in the study.
Strategy: The unified comprehensive plan that the enterprise develops to achieve its objective.
Enterprises: This is any commercial undertake that is either publicly owned or controlled. The word is used interchangeably with organization in this study.
Company: Is an association of a number of person carrying on business for the purpose of a monetary gain, although there are other companies that are deliberately non-profit making.
Business Environment: This is the sum total of the physical and potentially relevant to the organization goals setting and goal attainment which are taken directly into consideration by members of the organization when making business decision and plans.
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