Full Project – The impact of globalisation on textile industries

Full Project – The impact of globalisation on textile industries

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Globalization is a multi-facetted process that defies a single acceptable definition. Different scholars emphasize different views about the causes and effects of globalization partly because of the differences in the concept focus and differences in ideological predisposition, about the process itself.

Globalization has been described as process or a form of a cluster interconnected phenomena, document or the product of vast invisible global forces producing wide spread changes world-wide, which have been viewed from two major perspectives.

From the liberal school, Globalization is a greater integration or interdependence of nations for the benefit of all. For this school of thought nations should open up their economics through deregulation and removal of national barriers to international trade and investment. These will lead to exchanges of goods and services and affects development opportunities in the process, i.e government remove all constraints.

On other hands, the radical school of thought sees globalization as the

universalization of capitalism through international economic policies with the sole aim of further incorporating the periphery and making it more dependents on the metropole.

The colonialist came to Africa and put in place a system of government and trade that replaced the organized procedures and principles of the African people (Obsfeld, 2000). The need for the expansion in production possibility frontier of an economy in order to exploit the benefit associated with international trade, business firms have to operate in order to produce the necessary output to exploit such benefits (Krugman and Obsfelfd, 1999).

As a result of the process of globalization, today local shops and supermarkets are well stocked with varieties of goods from a complex network of economic relations stretching across the world. These goods could be in form of food items, textiles, agro chemicals, automobiles, stationeries, and electronics etc,

Similarly, via the international communication media such as the internet, satellites and telephone it is possible to get connected to any part of the world in a matter of seconds.

Ninsin (2000) observed that globalization is about an increasingly interconnected, and interdependent world, international trade, investment, finance that have been growing faster than national incomes. It involves technologies that have transformed people ability to communicate in ways that would have been unimaginable a few years ago. Furthermore, it offers new opportunities for workers in all countries to develop their potentials and support their families through jobs created by greater economic integration.

The policy direction of industrialization strategy was provided to the newly established firms to enable them operate successfully by producing at lower unit cost of production in relation to their fully established rivals in the develop countries and had been declining, even through the decline in the textile sub-sector of manufacturing is not as severe as for the overall manufacturing sector.

Complete economic deregulation as adopted and implemented in with the developmental experience of newly industrializing countries, especially in south Asia that many developing countries most owe their success, manifested in spectacular   economic   growth rate to   guide deregulation   and periodic governmental intervention and regulation that facilitated their present export competitiveness and supremacy in textile prior to globalization (Jerome, 1998 and Stein, 1992).

In an attempt to reverse the negative economic decline resulting from the mono cultural orientation and spuriously negative external balance to ensure proper   and   efficient   resources   allocation,   reduce   wasteful   governmental expenditure and provide a base for long term growth, the neo classical or neo liberal economic policy which has been implemented in Nigeria by General , Ibrahim Badamasi in 1986 as Structural Adjustment Program (SAP), the major thrust of SAP is economic deregulation and liberalization. Though, several policy measures were showcased in the package with a view to address fundamental macroeconomic stabilization problems that bedevil the Nigerian economy (Obaseki, 1997 and Olisadebe, 1991).

From the early 1960’s to 1980’s governmental policy and objectives of industrialization are in separable from the need to solidifying import substitution and its perceived and its perceived benefit to the individual firm and the economy as a whole.

From 1986 to 2005, being twenty one years after the introduction of SAP in Nigeria anticipated improvements in production advocates of liberalization emphatically envisaged, tailed to materialized. Contrary to their assertion, production in the manufacturing sector in general had been declining, even though the decline in the textile sub-sector of manufacturing is not as severe as for the overall manufacturing sector (Umar, 2000).


This research will be directed at critically examining the impact of globalization on industrialization with particular reference to textile industries crisis which is deepened by the role of multinational corporations and the dominant rules of Bretton woods institutions brought about by SAP policies which recommend unilateral economic programmes and development agenda. The consequence of these roles placed Nigeria in a disadvantaged position thereby hindering its industrial development especially the textile industries. However these are associated with many problems in textile industries some of which include poor economic conditions in export markets and poor infrastructural facilities which led the textile industries to increasingly rely on foreign enterprises, which become more pronounced and aggravated by the Structural Adjustment Programme (SAP). The textile industries faced a lot of problems among which are the lack of poor legal right to guarantee property right and safety, lack of good governance, corruption, political instability and low access to investible funds due to under undeveloped long term capital market that matches industrial project needs. Constant power failure, insufficient protection as typified by the presence of smuggled goods in our market from China, high cost of foreign exchange, absence of institutional capacity to eliminate smuggling through effective border surveillance. Low quality of locally produced cotton at a higher cost, especially Funtua textile which was established essentially to make use of the cotton produce at Funtua akis, as a result of poor low and quality of cotton produce in the area this led the company to import cotton from other countries to remain in production.




  1. How does globalization affects the level of textile output in Funtua textile?
  2. What are the implication of China imported goods to the collapse of Funtua textile?
  3. What are the possible solutions to the problems of globalization on Funtua textile?


The general objective of this research is to examine the impact of globalization on textile industry with particular reference to Funtua textile industries in Katsina state which include:-

  1. To find out and examine how globalization affect Funtua textile.
  2. To examine the impact of China imported goods to the collapse Funtua textile industries.
  3. To proffer solutions to the problems associated with globalization of Funtua textile.


This research is significance as it aimed at providing possible solution to the problems of  Funtua textile industry which has adverse effect on Nigeria economy. It is also relevant to researchers, policy makers, practical statement, and students, in analyzing the effect of globalization on Nigerian economy particularly in the textile sector. However, it would also serve as a contribution to knowledge especially to those that would bridge the gaps that work did not cover.


This research is designed to investigate the problems of Funtua textile industries such as its effects towards the development and stability of Nigerian industrial sector.


         This research study cannot adequately give or present a complete or exclusive account of the impact of globalization for the whole Funtua textile, because of the limited time and financial constraint.


         This research is divided into five chapters. Chapter one contain general background, statement of research problems, research questions, research objectives, significance of the research, scope of the study, limitation of the study, research organization and research timeline. Chapter two consist of survey of related issues and concepts, empirical literature review, theoretical framework. Chapter three consist of hypothesis, operationalization, types and sources of data, study population, sampling techniques, method of data collection, method of data analysis. Chapter four will comprise of data presentation, data analysis, hypothesis testing, discussion of findings and implication. Chapter five will comprise of summary, conclusion and recommendation.



         I will endeavour to submit my chapter one in second week of first semester, my chapter two will be submitted in the fifth week of first semester where the remaining chapters of four and five will be submitted in first week of second semester.



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Full Project – The impact of globalisation on textile industries