The changing economic world - Nigeria case study Flashcards
Location??
- Located in West Africa
- Just North of Equator
- South of the Tropic of Cancer
Classifying industry jobs? Primary?
Extracting/ using raw materials e.g. agriculture, mining
Classifying industry jobs? Secondary?
Manufacturing e.g. Nissan
Classifying industry jobs? Tertiary?
Providing a service e.g. retail/ doctor
Classifying industry jobs? Quaternary?
High tech, Research + Development, e.g. Web design
GDP in Nig?
GDP per capita has had a steadyincrease after 2010
Total GDP has increased rapidly since 2010
Importance of oil in Nig?
- Nigeria’s oil is high quality
- ## Income from oil and gas has helped Nig make the transition from LIC to NEE
Downfalls of being so dependent on oil?
- The country’s dependence on oil makes it vunerable to changes in the oil prices
- The USA used to be Nig’s largest customer for oil. Now USA produces it’s own oil (shale), India has become the largest customer
Why is manufacturing flourishing in Nigeria? Large pop
- Large pop = large workforce
Why is manufacturing flourishing in Nigeria? Youthful pop
- Able-bodied workforce
Why is manufacturing flourishing in Nigeria? Official national language is English
Interntional lang and beneficial for investment from around the globe
Why is manufacturing flourishing in Nigeria? No longer a LIC
More disposable income for local pop
Why is manufacturing flourishing in Nigeria? 70% of pop living in poverty
Low wage rates
Why is manufacturing flourishing in Nigeria? Oil contributes $10 bn in foreign exchange
Income to driv economic development
Why is manufacturing flourishing in Nigeria? Wealth of natural resources
Raw materials for manufacturing (e.g. agriculture and minerals)
Why is manufacturing flourishing in Nigeria? Stable democratic gov since 1999
Attractive for forign investment
Positive multiplier effect of manufacturing?
TNC’s set up factories ➡ Factory workers spend money locally ➡ Local services have more trade ➡ Gov. receives more tax ➡ Gov invests in infrastructure
Examples of manufacturing?
- VW cars
- Unilever e.g. Marmite, persils, food + toiletries
Trade in Nigeria - import
China is the top importer - growing wealth (more disposable income) increases demand for luxury elecrical appliances and engineered goods, which thy can’t yet produce itself - China is a low cost source
Trade in Nigeria - exports
N exports most to india bc it is another NEE and it needs oil to support growth - USED TO EXPORT TO AMERICA BUT THEY STARTED PRODUCING OWN SHALE OIL