Understanding How International Trade Impacts Nigeria's Export Industry and Economy: A Simple Overview.

Nigeria should rather work on and improve domestic trade than focusing all resources on International trade. With domestic trade, goods and services can move easily and freely within states of Nigeria. For instance, goods can move from Lagos to Sokoto without any restriction or barrier, unlike from one country to another, it will be difficult due to immigration laws which can prevent free entry of people from one country to another.

For international trade, language can also be a barrier. For example a man from a French speaking country may not understand words in English, whereas in domestic trade, because of frequent interactions, people I'm different states of Nigeria have come to know how to communicate among themselves, even though pidgin English. No transportation cost or levies paid such as customs duties, import quote etc. 

There is trade imbalance in international trade, where imports is far greater than exports. Nigeria is a victim of such problem. Until some measures are introduced to remedy the situation, Nigeria will be in a very big trouble.

The federal government of Nigeria needs to encourage domestic trade and manufacturing in the country. Producers, manufacturers and workers should specialise in the production of those goods which have the greatest advantage over other countries. For instance, Nigeria is rich in crude oil, we also should be able to boost of agricultural produce, and other non-sector of the oil economy. Each Industry in Nigeria should specialise in that occupation of production of goods and services that will have great advantage over others.

Due to the high import of goods and services in Nigeria, this have led to a consumption habits in the country. International trade make it impossible for manufacturers and producers to enjoy the benefits of production. This can lead to stifling of local industries. The local industries will little or no capital equipment may be stifled. No protection.

Exploitation is prone to happen in international trade especially for African countries. Well advanced countries like China which is highly industrialised may use their advantageous position to exploit the less developed countries.

Nigeria dependency on foreign trade is outrageous. We depend so much on foreign countries, mostly in times of difficulties. We just become vulnerable by living according to the dictates or the whims and caprices of these wealthy countries. There is a need for protection of our local Industries. This will help build up productive power in the country. The infant industries are protected against exploitations. The federal government also need to preserve the available foreign exchange for the importation of raw materials needed to boost the development processes.