ABSTRACT
International trade and other economic activities between nationalities have greatly expanded in modern times. Movements of goods and services over great distances have made possible the consumption of such goods and services even in place or countries where they are not produced. The implication being and improve the standard of living for many.
However, exporting countries and importing nations trace the enormous problems or exchange rates fluctuations. In this work an attempt have been made to examine the impact of exchange rates fluctuations and balance of payment (export position) in Nigeria. This is study was carried out through the use of a questionnaire, Oral, interviews and secondary data.
It was found that there is a positive relationship between foreign exchange earnings and volume of imports in Nigeria that the importers do not think favourable of the structural adjustment programme and some Bank do not pay interest on the delayed export proceeds of FEM deposit account. Based on the findings we re commend that government should intervene to the foreign regulation of the sharp fluctuations in the foreign exchange market by improving the real productive sector of the economy. The apex bank should punish severely banks who do not repatriate export proceeds
CHAPTER ONE
1.1 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