Challenges and Competition in International Business

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Determining challenges, barriers and competition that country and faced and regional trading
bloc with neighbouring countries ................................................................................................1
Analysing the steps that country has taken to overcome the challenges.....................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International business refers to trade and transaction of goods, services, technology
across borders at global level or transnational scale (Ansoff, 1991). It include the business of
physical goods such as finance, banking, insurance and it also evolve in the name of
globalisation. In this report Nigeria country has taken which is officially the Federal Republic of
Nigeria is a Sovereign country comes in West Africa. The topic covered in this report are the
challenges, barriers and competition that country faced to trade with two neighbouring countries
like Benin, Chad and regional trading bloc with this two countries has been studied. Apart from
that evaluating some steps and determine the initiatives that country has taken to confront some
challenges and issues that it has been facing for longer period.
MAIN BODY
Determining challenges, barriers and competition that country and faced and regional trading
bloc with neighbouring countries
Challenges while doing trade in international business are depend on many factors and
overall political stability of particular countries who were trading across the borders.
International trade challenges could include problems related to small domestic markets. High
transport and transit cost, low productivity and infrastructure and difficulty in operational
activities and issues in attracting foreign investment and many more (Barney, 1991). If country
has efficient in international trade and able to overcome the issues than its shows that country has
effective political stability and good relation with its neighbouring nations. Developing countries
were now focusing on increasing their international business and trade to enhance their domestic
growth. Under developed countries used to face more problems than developing and developed
countries as they were facing many internal issues and lack of other facilities. Nigeria is
underdeveloped countries with lower per capita purchasing power that is on average $1,181. It
has faced some challenges during its international business with other countries. In 2019, Nigeria
recorded a growth of 2.2% according the IMF which is quite low from other nations. Some of
issues has confront by the country are as follows-
 Corruptions- This is common factor that every country used to face while doing
international transaction with other countries and doing any business. This hinders the
process of trade and it exist within the country and when it is deep rooted then it become
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very difficult to any country to develop. In Nigeria, they believe that corruptions is
responsible in doing business in the country and that was revealed by 85% adult
Nigerians in current survey (Barwise, Marsh, & Wensley, 1989). This corruption is
happened because of weak government institution and poverty in the nation. The
challenges from its neighbouring country like Benin and Chad has also being affected by
the corruption prevailing in Nigeria and comes out as negative image.
 Foreign trade restriction- Country must have friendly and positive attitude towards
foreign trade or business to gain opportunities to develop and establish better relations
with other countries. To developed faster and come out as strong nation, it must have
liberal and limited intervention of government authorities in trade practices and should be
provided with political friendly policies and rules (Brown and Eisenhardt, 1997). In
Nigeria, the government is taking maximum control over all trade practices and policies
that brings down the foreign investment and opportunities. The government used to put
strict rules over foreign nations who wants to trade with Nigeria and that put negative
impact on the countries.
 Lack of infrastructure- Countries should be well-defined infrastructure to attract other
developing and developed countries to investing as it facilitates them to trade. It is
essential for every nation to stable infrastructure to attract other to invest in their nations.
The infrastructure challenges that Nigeria faced with its neighbouring countries like
Benin is that, Benin has poor infrastructure than Nigeria and its import and export largely
depends on the Nigeria. In this process the infrastructure development has created cerain
issues related to its neighbouring countries like in Benin the lack in the infrastructure has
created challenges between Nigeria that who will overcome with the situation. With
Chad, this country is far behind the development of infrastructure and try to build the
sustainable growth in the economy by focusing on various methods and creates sense of
competition between Chad and Nigeria.
 Inconsistency in supply and demand of goods - This is main challenges that Nigeria and
its neighbouring is facing where, it closed its borders due to some security issues with
other countries and create big problem among other countries that is associated with
Nigeria. It adversely impact the business of both countries as it create big issue in the
development of their economy. With the Chad, Nigeria, this is facinng the issue of supply
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