Nigeria and the Oil Industry Essay Example | Topics and Well Written Essays - 1250 words

Nigeria and the Oil Industry - Essay moralThe paper also includes governmental policies with honour to oil industry. care Theory The companies do not inevitably mountain to take advantages of the difference in their production and manufacturing capabilities but also to get benefit of the increase returns. International trade has emerged over a period of time to be recognised as a key comp nonpareilnt in a nations growth and to enhance its economic performance. The in the buff trade theory as introduced included a concept of interindustry trade. This allowed the trading practice amid various industries belonging to different economies (Menipaz & Menipaz, 2011). The trade theory also states that the government of the nations can adopt essential measures in developing the economic conditions of the citizens. The government of Nigeria is needed to take necessary steps involving the international trade practices (Bergoeing, 2003). A company is said to have achieved absolute advanta ge if it is capable of producing more goods than its competitors with the utilisation of same amount of resources or manufactures same quantity of goods with the utilization of minimum resources compared to its competitors. In this context, it is worth mentioning that Nigeria being matchless of the largest reserve nations of natural resources could have gained this advantage but due to the lack in advanced comforts and structures, and adequate law enforcement, the nation is deprived of this advantage (Bergoeing, 2003). In the era of international business, economic as well as social importances of international trade have played their role as the ancestry theories influencing the international trading business (The thrift Watch, 2010). The Nigerian oil industry is facing instability with respect to declining condition of Niger delta adversely affecting the national economy and the sustainable growth of the related industry. Nigeria is included among the come about ten nations that are considered to have richest reserves of oil or natural resources. The main problem of Nigeria is that it has indisputable lacking in terms of advanced technology and infrastructure related to oil industry. As one of the major impacts of globalisation, the industry is facing tremendous competition from the outsiders (Foreign competitors). As stated by Adolor Uwamu, CEO of Seawolf Oilfield Services, the drill for oil and hired gun is being carried out by the foreign companies in Nigeria and this has been a factor for the chivalric 40 stratums (CNN, 2011 The Economy Watch, 2010). Participation of Nigerian Oil Industry in International Trade Nigerias international trade and export is significantly dependent on the oil and natural gas industry. After the introduction of economic reforms which was in the year 2005, the government of Nigeria has paid adequate attention in diversifying the nations export related profile. Oil and natural gas are considered as the primary(a) pro ducts that are being exported of Nigeria. The nation is noted to export about 2.327 million of barrels daily, according to statistics of the year 2007 (The Economy Watch, 2010) as illustrated in the below figure Nigerias Export Volume Source (The Economy Watch, 2010). Globalisation and Regionalisation Nigerian government has taken necessary steps to reduce the exploitation of oil of Niger delta and downfall of oil