The Impact of Foreign Loan and Foreign Investment on the Nigeria Economy

The Impact of Foreign Loan and Foreign Investment on the Nigeria Economy

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Chapter One of The Impact of Foreign Loan and Foreign Investment on the Nigeria Economy

INTRODUCTION OF THE STUDY

In a word where nation are unequally endowed with human natural, financial resources, a high degree of interdependent do exist. No nation can therefore operate as an Island for survival may be impossible.

This interpendent is so vital that it cuts across ideological and potential political lines. Hence we see, for instance trade between the Eastern and Western blocks despite their strong ideological differences.

STATEMENT OF PROBLEM

Owing to such inequalities and independence, there is a constant flow of international resources from one country to another, particularly from surplus to deficit areas. There resources are transferred through many methods that sis foreign loans and investments both of which bring about economic development if well directed and utilized.

PURPOSE OF THE STUDY

i. To examine critically the aids of foreign loans and foreign investment giving to developed countries and developing countries.

ii. To find out the reason behind foreign loan and foreign investment in economic an industrial development of Nigeria.

iii. To appraise the impacts of foreign loans and foreign investment in economic and industrial development in Nigeria.

iv. For stimulation of employment.

SCOPE OF THE STUDY

Although foreign and foreign investment taking as dictionary of business and management defines advance to be banking loan. It goes further to define loans itself as a business transaction between two legal entities whereby one party (the lender) agrees to lend finds to the developing countries.

PLAN OF THE STUDY

The plan of the study is to examine the prospect and impact of foreign loans and foreign investment in economics and industrial development in Nigeria.

To achieve this, the granting of foreign loan and foreign investment in economic must be given to the developing countries more than given to developed countries in other to be productive and effective.

It is necessary to determine which percentages of loans given out will yield and appreciable revenue and its impact and effect on general price level index. Based on the findings, additional recommendation of any will be towards efficient and effective collecting foreign loan and foreign investment.

LIMITATION OF THE STUDY

The study is expected to cover the research aspect, however due to time visit more banks and financial constraint of the research been due to the non-availability of some required materials to conduct the research work. in spite of these constraints, an attempt had been made to solve processes involved to the best of our knowledge.

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