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HOW TO MAKE PAYMENTS FOR GOODS SUPPLIED TO A NIGERIAN IMPORTER
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In every business organization which are profit oriented enterprises international trade originated when nations exchanged products for other which they could not produce themselves or which could only be produce at exorbitant cost at home, it differs from internal trade in a number of ways. For instance, greater risks are involved when a firm has to estimate the size of a market where the people have customs, habits and tastes differing markedly from those of its usual customs. Different languages, currencies and methods of conducting business are some of the other complications. In addition, legal restrictions and the reluctance to move are two of the reasons why capital and labour movements are less frequent when political frontiers are involved.
Within the limits set by the opportunity cost ratios, the manner of sharing the gains from specialization and trade between the two countries depends on conditions of supply and demand on a world level, the actual rate at which a nation?s goods exchanged for those of other countries is called the ?Terms of trade?
Each nation?s record of its transactions with other countries known as the balance of payments. Since 1970 two abroad classification used in presenting the British balance of payment have been.
a. Current account and
b. Investment and other capital flows.
The current account is split into visible and invisible items. Visible trade refers to the export and import of goods and the different between the values of these two amounts is known as the balance of trade. Normally Britain has a deficit here, imports exceeding export but in 1970 there these was a small surplus of $3 billion ?invisible items refers to the import and export of services. Britain provides financial services for other countries such as banking and insurance and shipping facilities for carrying their goals, and also offers tourist amenities. Also included is the return or earnings on investments abroad exceed sums invested by foreigners here, there is not gain to the balance of payments on this item. There is a net debit under government items, Due to Government grants to developing countries under aid programme, military expenditure aboard, etc. over all, through; Britain does well on ?invisibles? with a net gain being made.
Under the heading ?investments and other capital flows? are included various flows of capital, many of which were once included as monetary movements in the balance of payments examples are public sector or Government lending or borrowing overseas on long-term basis, and overseas investment in the U.K. private sectors and British Private investment abroad. This could take the form the purchase of foreign stocks and shares, or the starting of business abroad some of these funds may be liquid assets, such as banks deposits of overseas holders, which can be withdrawn at short note.
1.1 STATEMENT OF THE PROBLEM
This study is designed to verify:
1. How marketing will require that payment have to be made.
2. The study also examines the effect of how to make payment for goods supplied to a Nigerian importer.
3. Would goods supplied of how to make payments affects the sales volume of fan milk Plc, Eleyele, Ibadan.
1.2 OBJECTIVE OF THE RESEARCH
The objective of the research of this study is to verify to which extent does how to make payment for goods supplied to a Nigerian importers affect the choice of consumer while making a purchase to verify the possible tools which could used in attracting the attention of the consumers towards the purchases which he/she might want to make. Our research is designed mainly to study and analyze the effectiveness of promoting sales taking Fan Milk Plc. As our case study with the hope that the knowledge could be of immense contribution to the company is solving on how to make payments for goods supplied.
This study is designed to find out the following: How to make payment for goods supplied to a Nigerian importer.
1.3 RATIONALE OF THE STUDY
This research work will actually reveal the investigating to obtain an effective and reliable logical basis for this project.
In view of this both secondary and Primary source of data will be used in the course of this project primary source provide information for accuracy and realistic of information two methods shall be adopted in collecting data from this source.
1. Personal interview
The primary source provides personal interaction between the research and objective of the Research where by providing opportunity to ask and request for necessary information of data.
1.4 SCOPE OF RESEARCH
This study is limited to How to make payment for goods supplies to a Nigerian importer. And, this is limited to the techniques of the Fan Milk Plc Eleyele, Ibadan.
The study will cover so many techniques tools that are combined to design every business organization that as given by many authors, particularly in Fan Milk Plc, Eleyele Ibadan.
1.5 HISTORICAL BACKGROUND OF FANMILK PLC
The Nigeria Fan Milk Plc was incorporated in November 1961, and the diary plant went into production on the 3rd of June, 1963. The first directors of the company were Erik Emborg, Chairman and founding member, Fredrick Clark, William Hardy, Lars Skensued and Chief B. Olufemi Olusola.
The initial share capital was N50,000, of which Nigerian investors held 10%. The name of Fan Milk and the Fan Milk Logo exclusively made available by Eric Emborg Daing Technique. Denmark was carefully chosen to associate the nutritious Fan Milk products with their cool refreshment valve. The company started with a modest dairy plant located at the Eleyele industrial layout, Ibadan but in spite of its modest size, equipped with the most modern equipment on the market at that time, the original range of diary products produced was limited to plan full cream milk and chocolate flavored milk both product filled and packed in the revolutionary and the first company to introduce in west Africa.
It took some years for the company?s product to penetrate into Nigerian market. During this initial difficult period Erik Embony Diary Technique always had faith in Fan milk and assisted with financial as well as managerial assistance in the late sixties, fan milk gradually expanded the product range with yogurts, cottage choose and frozen flavoured Lollies; the latter packs in a special design of Tetra pack becomes extremely popular all over Nigeria. Another technique put in place was the exploitation of the market on a nation wide has entailing the establishment of a dairy plant in the North and the East and expanding of existing dairy plant and facilities in Ibadan. In order to provide the basis for this increase in activities, the share capital of the company was increased substantially and by 1979 the ownership of fan milk has changed to 6% Nigeria investors and with a paid up capital of N7,250,000. in acknowledgement of the enthusiastic shown by the Nigerians, Mr. E. Embomy expressed his wish to hand over the chairmanship to a Nigerian, named chief O.I. Akinkugbe, who had already served the board for a number of years, accepted the appointment as chairman of the board of directors, a position, which later taken over after many years by chief Oba Otudeko currently the share-holders chairman.
Fan Milk utilizes fully the capacity of the diary plants in Ibadan and Kano from the two dairy plants, a fleet of refrigerated trucks delivers the product to 51 distribution centers and more than 70 depots throughout Nigeria from these centers, some 1400 bicycles vendors bring the products to the consumers. Today, Fan Milk has a total staff of approximately 700.
Fan milk is today known throughout Nigeria for its range of high quality products future plants to enhance this position include continue development and implementation of improved production methods and marketing initiatives.
Fan Milk?s own research department is constantly investigating the possibilities for utilization of local raw-materials they have found that Soya milk is a product, which deserve close attention already completed, is the identification of suitable soya beans and the necessary harvesting and storage methods.
Research is undertaken by the company?s own research team and supported by its technical partriers (Fan Milk, 1993).
1.6 LIMITATION OF THE STUDY
Judging from the fact that the promotion applied to various establishment all over the country it is never easier considering the time which the project is require to submitted and the financial constrain of going to all the establishment, the relevant to research materials and uncooperative attitude of the respondents are the limitations of the study. Therefore, the researcher has decided to limit the only few available facts and materials to case study Fan Milk Plc, Eleyele, Ibadan.