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PROJECT TOPIC: THE IMPACT OF EXCHANGE RATES FLUCTUATIONS AND BALANCE OF PAYMENT (EXPORT POSITION) IN NIGERIA

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CHAPTER ONE INTRODUCTION The historical development of international trade can be dated as back the period of world war 1 (1914-1918). Though world trade was heavy during world I, that world depression of the 1930’s greatly brought a decline in world trade.  The actions of several governments aggravated the from in the level of the world trade. After world war ii era, the long run trend has been toward a relaxation of trade barriers (Solomon, 1976). International trade sprang up in both century courtesy of mergers, acquisitions, consolidation and formulation of new companies and various types of securities issued by co-operations from survival of expansion following the development of financial management system, international trade was accelerated (Ndu, 1991). International financial developments are having an increased  effect on people because all parts of the world are now more closely linked together than ever before. Communications throughout the world take place within a matter of minutes or even  seconds (Weston and Copeland, 1986). Trade and other economic contracts between countries have expended greatly in modern time, the mass movement of commodities often over great distance has made available many articles, which could nor be enjoyed, hitherto and this has raised standard of living. As a result of international trade rule now have both a greater amount and a greater variety of goods to consume. The growth of international trade has gone hand in hand with technological improvements in productions and with development in transportation. These advances have made possible the large increase in the volume and variety of goods produced and traded factories turn out large quantities of commodities which are not only consumed locally, but are immediately distributed to different parts of the world improvement in transportation and the expansion of world markets have made possible this large and economic production.  Before the advents of oil exploration in 1958, Nigeria was an exporter of some agricultural product such as palm oil, cocoa, palm kennel, groundnut. Rubber etc the exchange earner for the country was also the greatest employer of labour.the importance of Agriculture can be best appreciated when it is realized that if accounted for greatest proportion of our Gross Domestic product (GDP). In the immediate post independence years, Nigeria had about 72 percent of its total working population engaged in Agricultural sector.  


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