Foreign Trade In Nigeria Essay

INTRODUCTION

Sovereignty is an essential ingredient for a nation or a state any unit of a multinational company when operating in the territory of a sovereign state is also responsible for a flow of commands from outside including commands from parent company and commands of other sovereigns. Multinational companies are not accountable to any public authority. The home government of an MNC can interfere in the affairs of the host government by screwing nuts and bolts of the parents company. It is a challenge to the sovereignty of the host government through MNC’S Two of the most fundamental attributes of sovereignty is control over currency and control over foreign trade. This have been substantially diminished.

TRANSFER PRICES & LOSS

When goods move physically across frontiers, it is usually seen as being trade between the relevant countries, but it may also be intra-firm trade. As the logic of infra-firm is quite different from inter- country trade, government cannot clear expectations of the effects of their financial and fiscal policies of TNC’S. A company may respond to higher tax rates by changing its transfer prices to reduce the tax bills. Governments have great difficulty regulating international transactions it is possible to prevent direct import to export of goods. However there is no guaranteed method of preventing indirect trade from one country to

In November 1990, in Nigeria a massacre of some eight people accrued at Umucchem, after the shell called the mobile police force for the protection of their installation and personnel. Shell has also purchased handguns for Nigerian police. In Columbia, British petroleum admitted in September 1996 that it had been paying to the Columbian army to protect its installation in spite of the fact that Colombian army has notoriously had human rights record. British petroleum had also been accused for providing lethal training to the Columbian police through service of private British security