Dynamics of Foreign Trade and Trade Relation Problems: Policy Options for Nigeria

Abstract

Trade theorists recognize trade as a vital catalyst for national growth andoverall development. Yet international trade can be one of the most hotlydebated and contentious of political issues, both domestically and betweengovernments. This study appraises the causes of disagreement among thecombatants divided into developed and developing economies. Through the instrumentality of theoretical analysis and graphical/tabular exposition,findings reveal that the global trade configuration is imbalanced favouringnations of the North to the detriment of Southern nations, with Nigeriaamong the worst hit. As we bid farewell to the first decade of the twenty-first century, there has been a gradual shift in the balance of economic power as countries like Brazil, Russia, India and China (BRIC nations) have emerged as trade superpowers. There is therefore a need for Nigeria to lead the way for Africa in the quest for favourable trade transformation, given her enviable endowments and enormous potentials as this paper advocates. The route to actualizing this feat as put forward in this study is for the country to, among other things, redefine her trade policy objectives and targets, modify her growth strategies and reformulate her development plans and programmes to meet the challenges in the face of the fast and rapidly changing global environment. This in essence will aid the nation to perk up her trade performance, which all other things being equal, will guarantee the likelihood of consistent economic growth and sustainable development.