A Review on the Impact of Globalisation on the Cocoa Industry in Nigeria

2014 dissertation for MSc in International Business Management. Selected by academic staff as a good example of a masters level dissertation. PURPOSE OF STUDY: Globalisation in its current form is seen in developed countries as a certain positive effect for the development of developing nations. However, these viewpoints on the positive impact of globalisation on under developed countries have also been argued. The Nigerian economy has so much dependency on imports and oil revenue, the country makes so much profit from their Agricultural sector and oil, yet it’s still suffering from setbacks. Therefore in order to find out the major reasons for its setbacks despite the fact that globalisation it’s supposed to contribute immensely in the nation as a whole, the cocoa sector has been chosen to review the benefits on its industry. The cocoa sector was chosen because it involves international trading and globalisation it’s supposed to have a direct impact on the development of this sector. METHODOLOGY AND APPROACH: Due to the dependency of this report on secondary data, the data were obtained using reliable sources of information such as: Government statistics reports, statistics reports from industry associations and statistics reports from intergovernmental organizations, Annual company reports and company filings, School Business databases, Business journals, Business newsletters, articles and books. Therefore, my methodology is essentially a review and synthesis of other literature and secondary data. RESULTS: Findings from this research study proved globalization to rub off on the decision makings to improve the cocoa sector. These decisions are however not seen as portrayed; therefore globalization cannot be given full credit to have a major impact on the Nigeria cocoa sector because of the setbacks affecting the development of the industry. There is a need for adequate infrastructure, well-being of the farmers and price stability of the produce for globalization to be fully accredited as a major impact in this sector. ORIGINALITY: A review of new evidence together with older studies was analysed for the conclusion and recommendations. Even though globalisation is regularly seen a positive impact on under developed countries. From my findings it will be seen that the case of Nigeria has been exceptional to benefit from its influence and support viewpoints on this theory. However, if there will be a stable government and less corruption, Nigeria as a country will to a large extent benefit from globalisation due to presence of numerous natural resources