Political Science

The economic environment in most African countries has had an almost dramatic shift as the waves of globalization have come sweeping through the continent. Globalization has been responsible for the rampant changes in sectors critical to the economy such as export and import, technology, and manufacturing. In Nigeria, one of Africas leading economic powers and the most populous nation in the continent, the effects that globalization has been able to bring about can best be analyzed by considering the operations of multinational firms there like Shell, and institutions like the World Bank and the IMF. This is what is discussed in this paper, with a focus on the oil sector and the governments policies. There are also conclusions and recommendations that ought to be adopted to improve the situation.

The Concept of Globalization
Essentially, globalization is the transformation of a national and localized economy into an international one by opening up a countrys borders to foreign investments, both direct and indirect, and to allow for the free movement of factors of production including human resources, technology, and free trade (Gbosi 2007). It also entails the formation of trading blocs to enhance regional competitiveness. Economic globalization usually focuses on the integration through aspects like capital flows, direct foreign investment, migration, and trade. On a wider scope, globalization is a concept that might include the international movement of ideas and general cultural aspects of the people.

Globalization in Nigeria
Globalization has improved the oil industry in Nigeria by allowing firms like Shell to drill oil and natural gas, and others to support the country in its development endeavors. As one of the leading exporters of oil and gas and a member of OPEC, Nigeria is a strategic destination for foreign direct investments (Akpotor 2005). The World Bank and the IMF have in the recent past been leading economic reforms in the country, hence the country could do more to benefit from new trading partners and to open up its market for more investments. As a result, the GDP of the country has been fairly improving (West 2003). Nigeria has for a long time failed to convert its huge oil resources into meaningful economic development, making its per capita income one of the lowest. The two institutions are helping the country realize this goal through putting in place viable economic policies that are believed to be capable of bringing about sustainable economic development. Investment in the power supply sector, a key sector of the economy that has often lagged behind, is being given a priority.

The Impact of Globalization on Government Policies in the Business Environment in Nigeria
Owing to the high rate at which the countrys trade with other nations is growing, the policy of the government in Nigeria has been slightly altered to go in line with the current economic trends. There is a lot more focus on international trade with companies like Shell and other Western companies most of which are specialized in the oil sector. On its part, the country has stepped up efforts to allow in countries like China to invest directly in areas of their interest such as power generation.

China has become a leading investment partner in the country (West 2003). That aside, globalization has forced the country to open its borders to more foreign investors. Policies and legislation in the country are designed to favor regional cooperation (Gbosi 2007). As a result, businesses have had a chance to come up. However, there has been an influx of cheap imports that are posing a threat to local industries, and together with embracing the beneficial aspects of globalization, Nigeria is keen to have laws that ensure growth and protection of local industries and businesses.

Impacts of Multinational Companies on Nigerias Economic Development
The economic state of the country has been greatly influenced by its oil players, mainly Shell. This company has been drilling oil and exporting it on behalf of the government. Although multinationals like Shell ought to play a greater role in the development of the country, this has not really been the case as Nigerians continue to lag behind in development in spite of it being the second largest oil exporter in Africa. It seems Shell and the government needs to reconsider their relationship and agreements so that the wealth of the country may proportionally benefit the citizenry.

Conclusion and recommendations
Globalization has been playing a very important role in allowing into the Nigerian market new technologies and goods at a fair price. Owing to the way in which globalization is ushering in new players into the Nigerian Oil industry, there has to be measures to ensure all the income that come from the oil revenue is channeled to benefit all citizens, especially those in the oil-rich areas like the Niger Delta. The IMF, the World Bank, and other partners of the country ought to work with the government to help curb rampant corruption as this will improve the flow of revenue to the intended people. Multinational companies like Shell must do more to ensure the benefits they get from the country are also used to help the locals by initiating development projects for the local people. Since globalization is bound to leap on indefinitely, it is critical, that the government devises ways to formulate policies that will help check the issue of substandard products, and to help its industries grow. Only then will the country be in a position to effectively deal with the effects of globalization.