ABSTRACT
The method used in the collection of data for this research include information gotten from the responses of the questionnaires distributed. Also there were secondary data which are from books and magazines. There was analysis of the table involved. At the end of the study, some of the finding include that actually a remittance lag actually exists in the Nigerian financial system and that the fluctuating exchange rate has an effect on the country’s balance of trade.
The recommendation include that external borrowing by, Nigeria should be in different currencies so as to offset exchange rate risks.
There was also a recommendation that there should be the establishment of official help to reduce the variability and increase the incentives on exchange rates. In conclusion it was adjusted that Nigeria as a developing country and economy needs to grow and come out of the menace of chronic balance of payment disequilibrium which is one of the causes of inflation. This could only be achieved when there is adequate management of international trade and payment.
CHAPTER ONE
1.1 INTRODUCTION
The process of globalization which is in vague is the rapid integration of trade relation productive and investment decisions across the globe by economic agents who employ and move investment capital and technology around to take advantage of environments where their competitive edge can manifest in high returns.
This process which came about with Marshall plan for Europe after the second world war has greatly expanded trade and economic contact between nations. The mass movement of commodities often over great distance have raised the standard of living world wide. International trade has made available a greater amount and a greater variety of goods for consumption. International trade has gone hand with technological improvements in production and with development of transportation, obviously this advanced in volume and variety of goods produced and traded. Factories turn out quantities of commodities large and small, which are not consumed locally but are promptly distributed to different parts of the word.
Virtually improvements in transportation and the expansion of world markets have made possible this large scale of economic production. The world is now a ‘global village ‘ because of the continuous flaw of goods in and out of nations and the dependence by every nations upon foreign sources for variety of goods, which are of special importance. These nation economics, financial and cultural activities have boundaries. Trade between nations was formerly carried out by private individuals, however in recent times government has increasingly engaged in international trade transactions directly with each other on the basis of governmental decisions.
