Income and the spending: A dissimilar varities or ways are applied for the measurement of the national takings and output. To know about or look about the total economic activities in the region or the country including the reckoning of net national income(NNI), gross National Product(GNP) and the gross domestic product. The approach for the total output of the nation to the total ratio of the people is receding there. The main source for the incomes are the employee reimbursement which includes wages, cost of fringe benefits. These were the ways of expenses of the French people. Now the approach for expenditure will be that firstly it is an output accounting approach. This method is so excitable and acceptable. (France Trade, Exports and Imports)
Major products and services produced locally: The first obsession which strikes our mind after consideration of the name of the European country France is class, style, croissants, berets. But beside this France has gone far more behind all this. It’s the hard working people and their culture which is being admired in the whole world. France is something like a fleeting image or the picture of class chefs and the beautifully and even stylishly dressed beautiful women in beautiful and costly dress. Main land features of France are hills, ridges, valleys, mountains and Plane Rivers. In France people can make money by manufacturing of cars. France contains stunning perfumes; it is the major industry of perfumes and style. The cultivation of France is very large. Each region of France produces its own cheese. It is even the leading producer of milk and cheese. The French trade symmetry was productive in 1961 for the first instance since 1927, but succeeding to 1961 imports rise at a superior pace than exports. Trade deficit generally improved until the 1990s. As of 1977 to 1985, the trade scarcity nearly tripled. Amongst factors held answerable was heavy familial demand for customer goods not widely shaped in France, slightness of the range of chief exports, and attentiveness on markets not mature for development of exports from France, remarkably the EU countries. In the subsequent years a growing alter in the trade equilibrium urbanized, and the deficit lessened appreciably in 1992. By 1995, France had a operate surplus of $34 billion. In all, France is the world’s fourth principal exporter of goods and the next largest provider of services and cultivation. France is the prime producer and exporter of ranch products in Europe.
Major export and import and volume: France has one of the largest trades in the world. It exports and imported the bottles. The major exports of the France have no one toward end like it. According to the latest album France exports machinery, transport equipment and aircrafts not only this plastics, chemicals and paramauticle product not only this iron and steels and beverages were some of its items for export. The total imported helped up to 532.2 billion dollars the important articles for import are machinery and equipments, vehicles and aircraft, plastic and chemicals and crude oils. The leading import partners are Germany Belgium Italy and Spain. Besides all this the French tourisms plays a major role in increasing the GDP. France rules this chart with the maximum number of tourists that is 82 million in number. Agriculture is the one of the strong points for France. The economy of France is not only one of the strongest in the Europe but also in the world. It is holding the fifth rank in the world at the place where economy is concerned. The standard and rules which regulates the import of the goods in France is quite stern and strict. It needs a huge quantity of raw materials for its various manufacturing industries. Precision tools are been needed by its high ends good manufacturing industry. Exporting goods from this country are another kind of profitable proposition. The products which are manufactured in France are a high demanding articles or things in the world. France is the trustworthy supplier of many essential and key items such as the submarines, jet-planes and the arms and ammunitions etc with the wide range of the manufactured products. One can easily find the buyers for the products of the French products not only in other European countries but also in Asian countries. It’s because many of the countries in Asia imports vehicles and other high-Tec equipments form France.
Major cultural aspects, cities and population: The culture of the French has been trimmed by the geography, by foreign and internal forces, profound historical events etc. France, particularly Paris has played an important role for the center of arts and the high decorative since the seventeenth century. France has always played an important role in the fashion, cuisine and cinema. The most important of French culture has waxed and waned over the centuries, depending upon its political, military and economic importance. The total population of France is 60,737,000 people with density of population 110 people per square km. its urban population is 76%. The main and the most popular cities of France are Paris with 10,500,000 population and Lyon with 1,600,000 population
ANS 2: NAFTA and EU: There are at present several opportunities regarding NAFTA that clearly foresee something further than a simple free trade area (FTA). Furthermore, there are analytical exercises in a relative point of view with the European Union (EU) that bestow the advantage of the hesitation on the suggestion of a North American Community. If we have the same opinion that the NAFTA is a segment in the creation and its objectives are apt to be overtaken by the dynamics of the area, we are in commerce. NAFTA stands for North American free trade agreement. It is the chiefly wide-reaching and influential treaties in this world. It pedals the entire band of the North American deal and it has on its ancestry hemispheric collaboration on a scale which has by no means seen before. The key benefit of this amalgamation is that the merchandise which is been shipped between the three NAFTA nations i.e. The United States Of America, Canada and Mexico have the labels in print in them in the three language French, Spanish and English. One other prime benefit of it is that the NAFTA agreement ostensibly has encouraged for the greater immigration between the three countries so in recent years. North America has turn out to be a real district for safety reasons, for financial reward and for political wellbeing. The peak is whether the NAFTA has it’s possess model or its development reveals skin common to the European skill. In synopsis, what the NAFTA wants is a hypothetical custom to debate its advancement as well as its obstacles, in arrange to study its environment away from simple unenthusiastic mixing and assuming that the district Integration Agreement entered among the nations like Canada, the United States and Mexico, might completely progress towards a society with a stronger institutional arrangement. NAFTA is just same as the political and economic union that European Union is that is EU. But it’s not hundred percent true that NAFTA and EU are same. It can be said so because NAFTA is like an union of economy that fosters cooperation and great trade between some of the countries whereas EU nations have common currency not only this European Union has a political elements and even a government of their own and NAFTA is deprived of all these thus it can be said that these organized unions are different in many respects. But ever since the establishment of the NAFTA and EU the countries involved in it have shown a tremendous profit in them and their nation. (What is NAFTA?)
Italy, Germany, France mutual collaboration: The reasons for the formation of these trade unions were to increase in the capability of the nations to trade by eliminating the custom duties on the trade related transactions between US, Canada and Mexico. And even on its parallel agreement related to the labor issues and the environment. Same was the purpose for the establishment of European Union’s so as to assume the free and easy trade between the European countries for the economic development of the countries. The main reasons for the establishment of the trade unions are to eradicate the custom barriers and to smooth the progress of cross border trade in merchandise and their services to assurance the surroundings for reasonable circumstances in the free trade sector for the increase in the investment policies among its member countries. Even the need for establishing this trade associations were to utilize the benefits of networking where one can learn different ways of trading which will directly help all the countries of the association. The main reasons for the establishment of the European Union were the reaction to the world war, a need for peace among the European countries who were enemies of each other. The other reason was the security against the rising threat of the Soviet Union after the Second World War. The political willingness of the European countries also was one of the causes for the formation of this union. The destruction of the economy of the European countries after the world war also gave a cause to create a free trade region for the economic development of the countries instead of competition they decided for the cooperation so this union got created which further provided to be a boon for the European countries and their development. Thus the main objectives for the creation for such unions are to create a free trade regime and even for the economic development of the country. (Global Marketing Basic Idea- Strategies, Evolution
Physical And Socio Economic Characteristics Of Nigeria Economics Essay
Starting from 1914 when Nigeria was created until the end of 1960 when Nigeria got her independence, and until the end of the first decade after independence. Nigerian economy has been agro-based. Agriculture has been the main source of income for the economy. During 1914-1959 when Nigeria was still being colonized by the British, it was stated that Nigeria was being exploited for its agricultural products. The country was known for the production of some main agricultural products like groundnut and cotton (produced in the North), cocoa (produced in the West), and Palm oil (produced in the East, which includes the Niger-Delta region). About 70 percent of the entire population was engaged in one form of Agriculture of the other. During the colonial era, railroads, roads and harbors were developed and market for consumer goods emerged as well with agricultural marketing board playing the role of NNPC today .
Exploration of oil in commercial quantity started in 1956 but did not play any major role until the early 1970s. According to Robinson`s report, in the early 1960s, revenue from oil accounted for less than 10 per cent of Nigeria`s revenue base which can be seen in 1963 and 1964 where oil revenues were only 4.1 per cent and 5.9 per cent respectively of the total revenue of the country. This means that Nigerian economy was formally not oil based, the majority of the country`s revenue during this period was from Agriculture, and more than 70 per cent of the people were employed in this sector. However, after the Nigerian civil war in 1970, the yield of oil began to increase and the dominance of agriculture in the country`s economy began to decline. Agriculture sector brought more than 50 percent of Nigeria national income before the discovery of oil but has now fallen to a dismal 20 percent .
According to the UN Food and Agriculture Organization 1987 estimate,¿½ there were 12.2 million cattle, 13.2 million sheep, 26.0 million goats, 1.3 million pigs, 700,000 donkeys, 250,000 horses, and 18,000 camels, mostly in northern Nigeria, and owned mostly by rural dwellers rather than by commercial companies. Fisheries output ranged from 600,000 to 700,000 tons annually in the 1970s. Estimates indicate that the output had fallen to 120,000 tons of fish per year by 1990¿½
The presidency of president Obasanjo from 1999 gave life back to the agriculture sector which now grows at a steady 7.5 percent annually and contributed to 41 percent of gross domestic product. This push was as result of new mechanized farming techniques alongside the relocation of some ex-Zimbabwean white farmers in Nigeria .
3.2 Discovery of Crude Oil in Nigeria
The discovery of oil in Nigeria to a large extent altered the nation¿½s economic landscape with its concomitant political consequences. As earlier as 1908, various oil explorations had started in Nigeria but it was not until 1958 that crude oil became officially a source of foreign exchange earner for Nigeria. Oloibiri in the present Bayelsa state of Niger Delta region was where oil was explored first in commercial quantity. Within this time, there was a daily output of 6000 barrel of crude oil. Let us note that all the oil exploration was at this stage being carried out by foreign companies such as Shell Petroleum Development Company (SPDC), Mobil, and Agip etc. It is crucial also to emphasize that it was only crude oil extraction that was taking place within this period as the capacity of refining the crude oil was not in place.
The impact of the oil exploration as a source of government¿½s income, at this time was not much as agriculture retained the primary source of national income. As Robinson pointed out, ¿½in the early 1960s, revenue from oil accounted for less than 10% of Nigeria¿½s revenue base¿½. This assertion becomes undoubtedly clear when it is considered that the period in question was the early stage of major exploration activities. We have noted earlier that prior to discovery of oil, agriculture was the main base of the nation¿½s economy as well as employing the most number of workers in the labour market.
However the prospect of large deposit and role oil would occupy in the Nigerian economy became evident starting from the early 1970s. The Nigeria civil war coincided with the rise in the world oil price, and Nigeria was able to reap instant riches from its oil production. Nigeria joined the Organization of Petroleum Exporting Countries (OPEC) in 1971 and established the Nigerian National Petroleum Company (NNPC) in 1977; a state owned and controlled company which is a major player in both the upstream and downstream sectors. From an insignificant 4.1% of the early 1960s, revenue from oil climbed to 98% within the first half of 1980 before dropping to 83.5% within the year 2000 and 85% in 2007.
Notwithstanding the endemic problems of civil unrest, political instability, border disputes, corruption and poor governance, international oil companies have always seen Nigeria as an attractive area for upstream investment. A number or reasons account for this among which are the quality of Nigerian Oil which is almost free of sulphur and the fact that Nigeria is well located in supplying oil markets in North America. The United State of America is currently the leading importing country of Nigerian oil. The Niger Delta, the Anambra Basin, the Benue Trough, the Chad Basin and the Benin Basin are where most of the oil exploration has taken place. The Niger Delta which includes the continental shelf and which makes up most of the proven and possible reserves retains the most prospective basin. Virtually all oil production from the earliest exploration time to current mining time has been concentrated in this basin.
3.3 Natural Gas
Natural gas is another confirmed fossil fuel Nigeria has in abundance. Unlike crude oil, its exploration has not peaked but it is estimated that Nigeria has around 3.5 trillion meters of gas reserves both oil and non oil related. Through the establishment of Nigeria Liquid Natural gas (NLNG), Nigeria has started an active exploration of natural gas as another major source of exchange earner. In fact it is being projected to be the major source of exchange earner for the nation above oil in few years. As in the case of crude oil, over 60% of the confirmed reserve is within the east of the Niger Delta. It is the of the world`s 7th largest confirmed gas reserve and largest in Africa. The biggest challenge in the gas sector is the damage to the environment through gas flaring. In Niger Delta flaring of gas is a constant phenomenon and occurs in all oil exploration locations in Nigeria. See some examples in figure 2 below. When crude oil is brought to the surface, the gas released in that process is called associated gas. Oil companies claim that this associated gas is flared for safety reasons because there are not infrastructures on the ground to bring it to the market. In developed countries, this practice has been curbed partly due to the recent rise in Natural gas prices.
Figure 2: Gas flaring in Farmlands near an oil well in Niger Delta
3.4 Other Natural Resources
Nigeria is equally endowed with other natural resources such as tin, iron, ore, coal, limestone, bitumen, lead and zinc. They have been confirmed to be in commercial quantities and have the potential of making significant impact on the nation¿½s exchange earning. Exploration of these aforementioned resources has not been maximally effective. A number of reasons account for either absolute neglect or under performance in commercially maximizing the potential of these resources. The resultant low share of these solid minerals in the nation¿½s GDP which is within 1% can be attributed to over dependence on oil and the underdeveloped nature of the sector, resulting from inadequate and inefficient policies for mineral exploration development.
However there is a renewed effort by the Nigerian government to reposition the mining industry. In that direction, Ministry of Solid Mineral Development was recently created to oversee and review the activities and proffer a more profitable way of harnessing the enormous wealth in the mining industry. For a long time, mining has been on an informal level and illegally carried out. This denies the government the relevant rents and endangers the environment as mining activities were not regulated.
3.5 Effects of Oil, Gas and other Exploration Activities on Nigeria¿½s Economy
The immediate effect of oil on the nation¿½s economy was an increase in the national income. The rise in world demand of oil in early 1970s increased the nation¿½s oil revenue. With this increase in the national income, the government embarked on a number of projects and took some steps to direct and plan economic growth and development. There was a progressive expansion of education with a view to reducing illiteracy and provide the necessary skills and labour for development. Nine additional universities were created in the 1970s and another sixteen in the 1980s in addition to five already in place in a bid to prepare the nation manpower for the envisaged economic development.
There was equally massive investment in the construction industry. Construction of road networks to link up the cities and rural areas were possible through the revenue accruable from the oil. In the major cities, there were big investments in construction of both residential housing and government offices as well as communication networks. Hydroelectric dams were built for electricity generation and secondary industries such as automobile assembly plants were established to create more employment opportunities for the growing population.
In a bid to position the industrial future of the country, there was a huge investment in steel industry such as Ajaokuta Steel Industry. This was established with a view to providing the local industries with the necessary tools needed for industrialization. The articulation was that for any economy to grow, steel industry is a condition that must be met. Hence, even against the advice of the World Bank, the Nigerian government proceeded with the help of the Russians in establishing the steel industry.
However, the effects of oil discovery are not all pleasant. One of the major tragedies of oil discovery in Nigeria is the collapse of the agricultural sector. There was, with the discovery of oil and a gradual dismantling of agricultural industry. Pre-oil Nigeria¿½s economy was powered by agriculture. According to Ugochukwu and Ertel, ¿½despite the rapid growth of oil industry during 1970s, agriculture still accounts for 40% of GDP and provides employment, both formal and informal, for a large majority of the population¿½
Exploration activities have been a major contributor in the environmental pollution and degradation since discovery of oil in Nigeria. Most of the areas hosting oil extraction activities are generally polluted hence making life difficult for both human and aquatic species. Gas flaring has been a source of concern to the environmentalists. For a long time until recently over 60% of gas production is flared. This obviously contributes in no small measure in the global warming.
There is the problem of social injustice in the sense that the Niger Delta region which hosts all the oil exploration activities is backward in terms of social and infrastructural developments. This has led to is the continuing civil conflict in a quest to address what is perceived as an injustice. The Movement for the Emancipation of the Niger Delta (MEND) began a wave of attacks and kidnappings of foreign oil workers in early 2006, knocking out close to a quarter of Nigeria’s oil output in a matter of weeks.
Continued bombings of oil pipelines and abductions of oil workers by armed gangs in the creeks, these activities have cut Nigeria’s crude oil output sharply over the past three years.
Many foreigners have been kidnapped since MEND began its attacks. Most hostages are later released unharmed, but oil production has dropped below 2 million barrels per day, compared to 2.4 million bpd before the attacks and a potential 3 million bpd.
The unrest has forced oil giants such as Royal Dutch Shell, ExxonMobil and Chevron to move all but their most essential foreign staff out of the region, while the drop in oil output has eaten into Nigeria’s foreign earnings, compounding the effects of the global economic slowdown. The Igbo effort to secede from Nigeria, which led to the 1967-70 civil wars, was deeply rooted in ethnic tensions and Nigeria’s colonial past; but the rebellion was encouraged by the presence of oil, and hence the belief that independence would be economically beneficial for the Igbo people.