Manner in which FDI Is Being Impacted in Nigeria due to International Laws - Research Proposal Example

Introduction The manner in which international laws are being developed and governed undermines the business management strategies which are being pursued by organizations. Nigeria which has a population of around 150 million provides an avenue for cheap labour as cheap business environment will provide an impetus for growth. The manner in which international laws have impacted the flow of foreign direct investment (FDI) is an area which needs to be researched and policies need to be developed so that more and more people agree to come together and look towards accomplishing the different task. The rick mineral base and abundant natural resources provides an impetus which should look towards attracting more and more FDI with better laws so that the overall growth and prospect of the people and area increases. Despite different evidence which should look towards attracting foreign investors Nigeria is being continuously being deprived of the required investment due to some or the other reason. Some of the major reasons which have been identified is poor investment reforms considering the international laws which are prevalent in other countries, lack of infrastructure, poop policies and violence. The prime reason for carrying out the research is to provide the readers with an understanding of the reason which has resulted in poor FDI and to examine whether the incentive reforms which have been developed are as per the international laws and standards so that better governance and strategies can be developed through which better investment opportunities are created. Significance of the Research The significance of the research is that it will create a perspective for both the readers and investors who are looking at examining the manner in which Nigeria is able to attract FDI and the laws which have been developed keeping in mind the international laws. The research will further look at using the different key FDI indicators through which the international laws which are able to attract investors will be determined in the international market. To ensure better research and information the research has been further streamlined and will look to narrow down the operation for the Mobile Telecommunication Industry in Nigeria. This will thereby help to improve the focus on will look at examining the manner in which different dynamics and fundamentals of the research look at developing the manner in which international laws impact international business management. Research Question The research which focuses on the manner in which FDI is being impacted in Nigeria due to international laws will look at addressing the following questions Is the FDI environment in Nigeria developed as per the changing external international laws and does it provide an incentive for the investors to consider the productive pool through which resources will be allocated so that they are able to stimulate the Nigerian economy? The impact international laws has made on FDI in the Nigerian economy so that the investment climate is developed in Nigeria? The future recommendations which needs to be followed and carried out so that they are able to develop the investment climate in Nigeria through which better reforms can be developed? Relevance of the Research The relevance of the research further increases as it will help to provide useful insights regarding the foreign direct investment policy which has been developed keeping in mind the international laws. This will thereby serve as an important benchmark through which policy recommendations will be developed so that the investment environment is developed through which better future attraction towards the environment policy can be developed. The relevance and importance of the research further improves as it will look towards determining the manner in which international laws have impacted the policy towards attracting investors and the manner in which international business management has been impacted due to it. The findings based on it will serve as a reference through which different information can be gathered regarding the FDI investment in Nigeria and will create the path for future research so that research can be carried out in the future. Structure of the Thesis The entire research has been divided into 5 chapter and comprises of the following details Chapter 1 is the introduction which introduces the topic, provides information pertaining to the research question, the importance of the research, the significance of the research, the manner in which the research will help in the future Chapter 2 provides the literature review which looks to gather data from past studies and research so that a framework can be developed regarding the direction which the research will take Chapter 3 looks into the methodology and highlights different areas like data collection method, sample space, the methodology used for collecting data, the ethical consideration and other aspect which will help to improve the relevance and importance of the research Chapter 4 looks into data analysis and results by carrying out the research so that basic information can be gathered and the manner the study is able to answer the research question will be understood Chapter 5 will look to make the conclusion by providing recommendations, action for the future and chalk out the path based on which future research can be carried out Literature Review This aspect looks to highlight on the past studies and research and looks at gathering data and information from published sources. This helps to improve the overall relevance of the research and provides a basis framework based on which useful direction and the manner in which international laws impacts business management in the global arena can be understood. Jones et. Al (2006) stated that foreign direct investment is the corner stone through which the domestic industry is able to develop its business and improve its chances of being successful but the manner in which international laws are being developed impacts different regions and economies differently. Helled (2011) highlighted the same from the perspective of micro economic aspect and showed the manner in which overseas business gets impacted by the international laws which governs business practices. Moosa (2002) highlighted on the fact that most of the international trade which takes place between nations occur entirely due the motive of profits as foreign direct investment helps to develop the business and the economy. This is in contrast to the fact that despite the manner in which business and economy will be able to grow the laws which governs and determines the manner in which foreign direct investment flows in the country is largely limited and will require introspection and looking into areas through which correct policies can be developed. Anura (2006) argues on the fact that foreign direct investment helps the economy as it provides an avenue through which infusion of technology takes place through which the hidden knowledge of the economy is used. The relevance and importance of the same will increase if policies are developed which looks towards strengthening the flow of foreign direct investment and nor curb it. This will require relaxation of international laws to a certain extent but at the same time ensuring that economies don’t undergo extra risk. This has to be matched by the fact that the international laws have to be moulded and crafted in such a manner that it provides an impetus and opportunity for developing the economy through the process of better infrastructure. Nigerian Foreign Direct Investment Environment United Nation Conference on Trade & development (2009) indigenization started in the year 1972 where the Nigerian economy allowed foreign direct investment up to 60%. This meant that hundred percent foreign holding was not allowed which limited the foreign direct investment. This was due to the difference between the international laws and the law which governed the Nigerian economy. In 1995 the government made changes in their international laws and worked in tune with the international standards by allowing investment up to 100% in different industry expect a few like arms, drugs and petrochemicals. This provided an opportunity through which the basic framework and structure was developed and ensured that the economy could make major changes so that the overall benefits increased. Investment Reforms in Nigeria Till 1995 the international law which was prevalent in Nigeria for foreign direct investment was one of a closed economy and the economy didn’t allow investment in the domestic economy. The change in the international laws with regard to foreign direct investment helped the Nigerian economy to ensure that they were able to attract more and more investment which has helped them to grow their business. This has created an environment where they were able to take corrective actions by making changes in the international laws thereby helping to develop a path through which better business management policies were developed. The official website of Central Intelligence Agency (2010) clearly highlights the manner in which changes have been developed in the international laws have helped to attract foreign direct investment. This has become possible due to the different reforms and policies which were changed so that it fits the international requirements and has thereby helped to strengthen the manner in which business working was carried out. Methodology This chapter will look towards highlighting the manner in which the research will be carried out and will highlight the overall perspective through which the research will be carried out. Research Design The research is divided into primary and secondary research so that different information can be collected and supported properly. The secondary information looks at using published sources, referrals, journals and other authentic information. The primary source look towards carrying out an online survey for different telecommunication company in Nigeria so that the opinion regarding the manner in which international laws are impacting foreign direct investment in the telecommunication sector can be identified. Population The population sample for the research comprises of all major mobile telecom companies that are operating in Nigeria so that their opinion regarding the manner in which international laws is impacting foreign direct investment can be understood. The research will be carried through a survey where the information will be collated, inter/extrapolated and juxtaposed so that the objective of the research can be achieved and the manner telecommunication sector is impacted can be identified. This will be then supported by secondary sources so that the overall relevance and significance of the research multiplies. Sample Size The information will be collected from 10 companies where they will have to participate in online surveys which will be mailed to them. The surveys will be sent to the employees from different companies so that their opinion and the manner in which international laws have impacted the telecommunication sector can be understood. Survey Design The survey will be divided into two parts. The first part will look at finding out their views and opinions regarding the foreign direct investment on a general basis and the manner in which international laws have impacted the flow on foreign direct investment in the economy. The second part will then focus particularly on the telecommunication sector and will look towards highlighting the manner in which different measures are identified. This will help to find out the opinion regarding the manner in which international laws have impacted their organization and will help to develop the framework regarding the manner in which the business has been impacted. Time Span & Schedule The research is estimated to be completed within a period of six months where the first few months will be aimed towards gathering information based on secondary research which will be followed by the survey and then finally the analysis of the information. The research further needs to be collated and compiled so that maximum consideration is given to the research question and corrective and correct factors can be identified which has impacted business management due to stringent international laws Validity & Reliability The validity refers to the truthfulness of the research so that all the assessment are made based on subjective opinions and judgements. This will thereby look towards avoiding ambiguous questions and will look towards following patterns so that no preconceived results is established. Care and attention will be given to ensure that the literature searches are appropriate and provides corrective results. Ethical Consideration The research will further be carried on ethical grounds and care has been taken to ensure that no information is leaked or manipulated. Further, the research will look towards obtaining permission from the concerned authority before using any information so that the research provides corrective variables and the impact it has on business management. In addition to it care has been taken to ensure that all the information which is collected is form reliable sources and every aspect related to the research is given equal importance Data Analysis The research will help to find out the views and opinions regarding the manner in which foreign direct investment is being affected in the telecommunication sector. This will also look at answering the manner in which international laws have impacted the degree of investment from abroad and the steps which needs to be taken. The research will also provide conclusive evidence regarding the different variables and the impact it has on business management for the telecommunication sector. The research at the end will help to answer the research questions which has been identified and will thereby help to determine the manner in which changes and developments have to be made so that the overall productivity for the telecommunication sector improves. References Anura, W. (2006). Determinants of the factors Affecting Foreign Direct Investment flow to Sri Lanka and its impact on the Sri Lankan Economy. [On-Line- Document]. Master‟s thesis. University of the Thai Chamber of Commerce. Heledd, Straker (2011). Understanding the Global Firm. Review of Macro level theory of FDI and the Micro level theory of Multinationals enterprise. Jones, Jonathan & Colin (2006) Foreign Direct Investment and the regional Economy. Ashgate Publishing Group, Brookfield Moosa, A. (2002) Foreign Direct Investment: Theory, Evidence and Practice. Palgrave Macmillan: New York. UNCTAD (1999) World Investment Report: Foreign Direct Investment and Development, Geneva: United Nations Website of CIA (2010). Investment Climate in Nigeria. [On-line-Document] Retrieved 24th June 2014. Available at http://www.state.gov. Read More