Laws pertaining to international business comprises of a set of conventions, treaties, rules and customs that govern commercial transactions in a global backdrop. This Business Law Assignment elaborates the legal systems of Nigeria in a matrix. This matrix involves a legal structure that encompasses the employment and agency law on torts and intellectual properties. The matrix explores legal concepts that apply over business transactions in Nigeria. Analysis of legal transactions in the scenario country is tallied in this Business Law Assignment as per the global perspectives.
Clarification of global perspectives: Nigeria maintains its global perspective in the businesses by creating opportunities to new issues, ideas as well as solutions. However, the current demographics conflicts, such as Boko Haram insurgency slows down the rate of widespread business development of Nigerian companies in international platforms (Omoye & Aniefor, 2016). Awareness towards global perspectives, such as extensive networking, customer relationship management databases and cloud based transactions are critical for creating business opportunities.
International laws for trade and commerce influences the processing of Nigerian companies of National Treatment principle and Favored Nation rule. Legal and commercial arrangements: Foreign Exchange (Monitoringand Miscellaneous Provisions) Act 1995 denotes pivotal agreements on tariff rates in import-export duties. It can be recommended for Nigeria to establish entry modes specific to the partner-countries. Another recommendation can be cited for international investors are that they obtain a thorough market analysis of Nigerian legal reforms prior to launch a venture in the scenario country. This is because; the recurring socio-political turmoils can create adverse impacts on the implementation of government legislation in business sectors. Adegbite (2015) comments entry mode can influence international expansion of a country's business prospects, in developed and emerging markets.
Economic integration: Association of Nigerian economy with international powers both in and out of Africa can confirm a 40% growth in its GDP ($377 billion). According to integration indices of Visa Africa, the scenario country is seen to have influential business with Europe, America and Asia. These observations explain the depth factor of economic integration on 26.1 against the gross regional growth at the rate of 9.6. Hereby, sensitivity towards economic regional integration is essential to understand the association of available resources on business ventures, in both local and overseas markets.
Official rate of international monetary exchange in Nigeria is 305 naira to 1 USD. However, lending rates among banks are different than the national rates. The case of International monetary system: Universal Trust Bank Limited & Ors v. Dolmetsch Pharmacy (Nigeria) Limited (2007) reiterates the conflict that has been a result of differentiating rates of interest and exchange in multiple Nigerian domains. Mark & Nwaiwu (2015) note a third exchange rate is also utilized by global money transferring companies, with highest rates of 380 naira available in black markets. As a result of discrepant exchange rates of currency, confusion occurs in international business platforms and import-export transactions.
Current trends: Despite problems in infrastructure and power, business appeal of Nigeria has undergone radical improvements through economic diversification. Shehu & Mahmood (2014) opine growth in telecom's contribute nearly 8.6% to GDP. Diversification has also lessened Nigeria's dependence on petrochemicals. Re-balancing economic sectors has predicted yearly increment of 8% in GDP, resulting in $1.4 trillion by year 2030.
Business environment: Commercial fluency is a major precursor to develop effective products and services in accordance to the cost relationships. A SWOT has been developed on Nigerian markets to understand its internal (strengths and weaknesses) and external (opportunities and threats) factors in the below section of this Business Law Assignment.
Table 1: SWOT Analysis of Nigerian markets
(Source: Given by Researcher)
As stated above in this Business Law Assignment, major strength of Nigerian markets in global platforms is the demand for its products and services. Nigerian Government has invested in large-scale infrastructures under Nigerian Investment Promotion Commission Act 1995, Chapter N117, and Decree 16 that has also given rise to international exchange reserve rates. However, issues like inflation and dissimilar exchange rates burden the national economy. External factors that influence the markets are commercial fluency from liquidity boosts, utilization of offshore bonds for corporate funding and sustainable financing. Nevertheless, market volatilizes can threaten the economy. Overall, global perspectives of Nigerian markets are open for innovations, despite recurring conflicts.
Potential trends and markets:
Table 2: PESTLE Analysis of Nigerian markets
(Source: Given by Researcher)
Elections can threaten existing contracts with the government, in case there is a change in the ruling party in Nigeria. Nigerian mono-economy with absolute petro-dependence has suffered a loss due to recent gluts in fuel markets. High borrowing rates have paved the way for inflation and an economical disturbance. 147.57 actively working population of Nigeria attract ample foreign investors in this nation. Advent of smart phones created 86.22 million users of internet that boosts awareness and opportunities. Companies and Allied Matters Act 1990 Chapter 59 stipulates 18,000 naira as minimum monthly wage (Federal Republic of Nigeria National Assembly, 2018). Progressive tax systems impose income tax at 30% for companies. The government protects ecology throughNational Environmental Standards and Regulations Enforcement Agency Act 2007. However, pollution rates are high due to lack of alternative power generation.
Recommended practice: International businesses are thereby exposed to multiple risks in this economy. Lack of appropriate communication and information systems can impose a negative effect on international business standards. Nevertheless, extension of global markets gives rise to opportunities in a rich human resource environment (Shehu & Mahmood, 2014). This can create implications in legal aspects and currency rates while entering the global marketplaces.
Research questions: The research question pertaining to this issue is given below. The focus of these questions is on the legal implications of international business that is conducted in association of Nigerian influence.
How has the legal system of Nigeria developed in consideration of agencies, contracts, intellectual property and employment legislation?
The researcher has chosen to review information obtained from various peer reviewed journals in descriptive and quantitative design. This research methodology has enabled the researcher to deduce the legal implications on socio-economic and commercial sector of the scenario country. Hussaini Rationale of research methodology: et al. (2017) state alternative methods that could have been used are primary or cohort-controlled studies. However, such a strategy would have increased the time and budget limit of the study. It would be exhaustive to collect primary information from Nigerian companies, as well as multinational organisations conducting businesses in Nigeria. Hence, the chosen methodology is justified for the research.
Business ethics in Nigerian backdrop caters to contemporary organisational standards of Ethical principles: Trade Union (Amendment) Act 2005 that governs behaviour of businesses. According to Ocheje (2018), businesses must be ethical in their transactions. The discrepant currency exchange rate acts as an antithesis to this ethical principle. In addition to this,Enterprise Promotions Act 1972 mandates the utilization of transparent communication while commencing overseas trade with multiple conglomerates. The moral positions of the multinational companies in Nigeria have a subtle inclination towards unethical working conditions. This is boosted by high unemployment rates and provision of cheap labor.
Normative ethics in a business settles model behavior in governmental legislation that enables their exhibition in a global platform. Moral-ethical reasoning: Investments and Securities Act 2007 mandates the incorporation of ethical reasoning to establish a moral ground for sustainable business growth in Nigerian economy. The case ofCob Bola Adelusola & Ors. V. Joseph Oladiran Akinde & Ors. (2004) recognizes need of business conduction through social responsibilities. Jointed incrementalism lays an expository foundation in domestic and overseas judicial authorities.
Hamilton & Webster (2015) confirms corporate social responsibility in Nigerian business context is embedded in localized and social constructs, multiple socio-ethical practices that are identified in Nigeria n firms anticipate the association of local and international markets. Corporate responsibility and socio-ethical business foundation: Corporate Social Responsibility Bill 2007 enunciates the need communicating to similar beliefs to understand business-society relationships in the scenario country.
