Project Description

ABSTRACT
Multinational corporations are large companies with their headquarters in the home country- the country of its origin and other branches in several countries around the world. There are specific duties to be assumed by the multinational corporations called social responsibility. Through social responsibility, the corporations put in measures what would benefit the citizens of the affiliates. Through sustainable development, the corporations and the host state ensure that the development practices used today do not hamper the quality of life and the development of the future generations.
Financial aid are loans or grants given by financial organisations like the World Bank, The International Monetary fund etcetera or countries to poorer countries to boost their economies or in response to need resulting from natural or humanitarian disasters. South Korea after its independence was provided aid and through this aid, it has been able to transform its economy and internal structure and is one of the leading Asian states of today.
The main objective of this work is to study the roles played by multinational corporations and financial aid in the Nigerian economy to pin point the shortcomings and provide possible solutions. Other objectives include examining the ideas behind the formation of multinational corporations, to examine the contributions of multinational corporations towards sustainable development, to examine the implications of multinational corporations and financial aid on the Nigerian economy and to proffer possible solutions to curb the negative impacts of multinational corporations and financial aid on the Nigerian economy.
The data used for this study was collected from primary and secondary sources- questionnaires, internet materials, textbooks, and journals. Furthermore the pattern of study adopted was descriptive and analytical. The collected data was properly analysed using the percentage method.

The findings of this research revealed that multinational corporations and financial aid in the economy do not play sufficient roles and for them to play sufficient roles, the government must step in to remove all loopholes and implement policies that would compel multinational corporations to play their roles and would allow financial aid to be used maximally. Also, the issue of sustainable development must be championed by the government as they are the only sector that can compel the multinational corporations. In summary, multinational corporations and financial aid can either boost or impede the economy and in Nigeria, it they have not be put into sufficient use. The conclusion drawn from this work is that, with proper management, the Nigerian economy can used these outside sources of income to boost its economy and the standard of living of its citizens. Therefore, the country should focus on the creation of local industries as this would reduce the reliance on multinational corporations and their activities within the state as well as reduce the need for financial aid.

CHAPTER ONE
GENERAL INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The existence and derived importance of multinational corporations can be traced to globalisation and its effects (shrinking the world into one global village). According to William (2009), globalization is the comprehensive term for the emergence of a global society in which economic, political, environmental, and cultural events in one part of the world quickly come to have significance for people in other parts of the world. Globalization is the result of advances in communication, transportation, and information technologies. It describes the growing economic, political, technological, and cultural linkages that connect individuals, communities, businesses, and governments around the world. Globalization also involves the growth of multinational corporations (businesses that see themselves functioning in a global marketplace). The international institutions that oversee world trade and finance play an increasingly important role in this era of globalization. Globalisation has whittled the frontiers and borders of sovereign states as economic, political, agricultural and other sectors have become global issues. According to the Great philosopher Plato, no man is an island. In recent times, that saying has been stretched to „no state is an island‟ and recent happenings in the international system have supported the statement. States have come to rely upon each other in the development of various sectors of their economy; even „closed‟ states like China have opened up their borders and are engaged in relations and partnership with other states.
The dire need for financial aid and loans by developing nations can be said to be the negative implication of the relationship between the developing countries and the developed ones (Great powers) even before they became independent. The weak and dependent economic system inherited by the newly independent states produced inevitably weak and unstable economies. The assumption that these financial problems suffered by these countries can be resolved through Foreign Direct Investment in the form of Multinational Corporations and financial aid has proved itself untrue and unhelpful. Despite the various forms of Foreign Direct Investment in these countries, their economic conditions seem to be depreciating.
Multinational corporations according to www.wikipedia are organisations that are owned or control productions of goods or services in one or more countries other than the home country. There is no exact fact concerning the number of Multinational Corporations scattered around the world but they can be estimated to tens of thousands (Goldstein and Pevehouse, 2011:339). The headquarters of most Multinational Corporations are located in the Group of Eight (G8) states. Multinational corporations vary in functions as there are industrial corporations, financial corporations to measure but a few and they all have the same mode of production but offer different services/ products. Not all multinational corporations are privately owned, some are owned by states although this is quite uncommon. Multinational corporation operations create a variety of problems and opportunities. The sovereignty of states of states ensure that a Multinational corporation cannot operate in a state without government approval, on the other hand, Multinational corporation have a number of states to choose from and they cannot be forced by any state to do business (Ajayi 2008, 93) .
Financial aid on the other hand refers to economic assistance granted to countries going through economic instability in the forms of loans or grants. Financial aid could be from one country to another, a group of countries to another or through international organisations like the World Bank or the International Monetary Fund (IMF). The state in which a foreign Multinational Corporation operates (its subsidiary) is called the host country while the state in which the Multinational Corporation has its headquarters is called the home country (Goldstein and Pevehouse, 2011:343). Financial aid refers to money made available to poor and developing countries by more developed countries or international financial institutions (Goldstein and Pevehouse, 2011:341). Usually, the recipients of these aids have to fulfil,…..

1.2 STATEMENT OF THE PROBLEM
Multinational corporations and financial aid have become very important features in today‟s international system. The main purpose of multinational corporations (foreign direct investment) and financial aid is to ensure that governments have more sources of revenue in the forms of taxes and social responsibility. Financial is also meant to improve the overall national economy. Despite the presence of these two features in most third world countries, there is little or no serious improvement in their economies. Questions are asked if this is the fault of the multinational corporations, donors of financial aid or the home governments. This research work aims at finding the implications of multinational corporations and financial aid on the Nigerian economy and to offer possible solutions that could help the government protect the economy. While previous work done on the subject have dwelt on the harmful implications multinational corporations and financial aid hold for the economy, this research work would offer possible solutions.

1.3 OBJECTIVES OF THE STUDY
The main objective of this study is to analyse the roles multinational corporations and financial aid play in the Nigerian economy, in order to pinpoint the short comings and provide possible solutions. The specific objectives of the study include:
1) To examine the ideas behind the formation of multinational corporations.
2) To examine the contributions of multinational corporations towards sustainable development.
3) To examine the implications of Multinational Corporations and Financial Aid on the Nigerian economy.
4) To profer solutions for curbing the negative impacts of multinational corporations on the Nigerian economy.
1.4 RESEARCH QUESTIONS
1) What is the relationship between the ideas behind the formation of multinational corporations and how they operate?
2) What are the possible solutions to the harmful effects multinational corporations have on the economy?
3) Should receiving financial aid be promoted or approached with caution?
4) Who is responsible for the adverse effects multinational corporations create in the economy, the multinational corporation or the government?
1.5 SIGNIFICANCE OF THE STUDY
The research study on the topic Implications of Multinational Corporations and Financial Aid on the Nigerian economy is targeted at identifying loopholes in controlling the activities of multinational corporations domiciled in Nigeria. It is also aimed at understanding how the country has received millions of dollars of financial aid that have not resulted into positive

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