1.1 BACKGROUND OF THE STUDY
For Quite a long period in the history of banking the foreign business function was relegated to the background yet the provision of a wide range of bank service to bank customer had always involved some aspect of foreign business.
Foreign business implies exchange of goods and services among the citizen of sovereign state or countries.
This research is an appraisal and evaluation of the role of banks in facilitating foreign business finance and the case study is First Bank Plc. The research is looking at the approach of the First bank to foreign business finance that is promoting foreign business links with Nigeria.
The financial system, consist of financial market, financial instruments roles, connection and norms that major types of financial intermediaries are universal banks development banks financial institution, insurance companies credit and saving institution, investment and mortgage institution. All these are also involved in trade activities, but on the other hand, financial intermediaries are very relevant in the study because financial intermediaries are very relevant in the study because financial intermediaries provide a linkage between surplus units and deficit units in the economy. First bank is one of the intermediaries that facilitate the promotion of business link with Nigeria.
The role of banks involved the foreign business finance is very important as to the business.
1.2 STATEMENT OF THE PROBLEM
The main thrust of this study is to analyze the role of bank in foreign business finance that is the approach of First Bank plc to international finance of business. This is with particular reference to the first bank as sub sector of financial sector of Nigeria economy.
Nigeria signed the world trade organization (WTO) agreement in December 1994 so it became mandatory for Nigeria to implement trade libercilization with effect from 1st January 1995. before then the federal government of Nigeria has imposed a regime of tariff and customs duties on the importation of goods and services into the country (GATT)
It is necessary requirement by the government likewise the bank to comply with it. Due to infrastructure deficiencies and imposition of taxation at the various tiers of government. Namely: Federal government, State government, local government.
1.3 OBJECTIVE OF THE STUDY
From the above scenario, it is pertinent to note that major objectives for which the study is being undertaken are as follow:
I. To examine the role of banks in foreign business finance.
II. To examine the operation of the foreign company in Nigeria
III. To examine foreign investment requirement and protection
IV. To examine the nature and level of relationship between First bank and other specialized banks in financing international business.
V. To undertake a survey of possible and constraints of the business financing and examine how these constraints can be moving or reduced.
VI. To investigate the opinion of the selected sector of the population as to provide a suitable research work.
VII. To review the existing and encourage considerable measurement toward support of the foreign investor but better still international business.
1.4 SCOPE OF THE STUDY
First Bank plc of Nigeria and other First Bank correspondent banks these multilateral agencies provide financial assistance to business managers (companies) with a view of promoting efficient use of resources, information and accelerating sustainable economic development. These agencies often require a relationship with a bank in the borrowing companies country.
1.5 DEFINITION OF TERMS
Foreign Business: Known as foreign direct investment in any country
Letter of Credit: This is a confirmed credit the advising banks add its undertaking to pay the settlement to that of the buyers (issuing) bank that opened with a correspondent bank’s trade finance facility.
Bill of Collection: Is a method of settlement whereby exporter said to that importer through correspondent banks.
Issuing Bank: That is the bank within the investor country e.g First Bank.
Correspondent Bank: That is the bank outside the investor country e.g Baraday’s bank of South Africa.
Domiciliary Account: (Non-export domiciliary account) the non-export or ordinary domiciliary account is mainly for all foreign exchange receipts other than proceeds on non oil exports.
Expatriate Quota: Is the official permit to a company conveying permission for the company individual expatriate and also specifying permissible
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