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Drivers of Internationalization of Marine Business Effects on Nigerian Investors (PDF)

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– Drivers of Internationalization of Marine Business Effects on Nigerian Investors (PDF) –

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Abstract

This work reviews the Drivers of Internationalization of Maritime Business and Effects on Nigerian Investors.

The global market is increasingly becoming popular and gaining importance as a base for internationally active organizations as well as those intending to go international Internationalization is an increasingly current topic in the area of business.

Previous studies have been carried out on factors influencing internationalization of Maritime Business in Nigeria however no known study has been done on the drivers of internationalization of the maritime sector. This has created a knowledge gap.

Companies have increasing needs to go abroad in order to stay competitive, yet many Nigerian Maritime Business companies and Investors have not yet taken this step.

There are several internationalization theories that attempt to explain the process and the reasons and considerations in the process. The Uppsala model suggests that companies tend to first explore the nearby markets and as the internationalization deepens, the company may then explore the further markets.

The network theory states that companies are reliant on other companies’ resources and thus need to engage in networks. As the network expands, the company may internationalize to the markets that the network has connections to.

Moreover, the resource based view states that companies should first look for a promising market and then see how to use their resources to exploit it, instead of the opposite.

Lastly, the non-availability and availability approach states that a country should import the goods that are not readily available in the country and exports those goods that are present in abundance .However, the key drivers remain Technology, Security and Economy.

The data collection instrument used was questionnaires which contained both open ended and closed ended questions.

Introduction

1.1 Background of the Study

The maritime industry includes all enterprises engaged in the business of designing, constructing, manufacturing, acquiring, operating, supplying, repairing and/or maintaining vessels, or component parts thereof:

Of managing and/or operating shipping lines, stevedoring  and customs brokerage services, shipyards, dry docks, marine railways, marine repair shops, shipping and freight forwarding services and similar enterprises. This paper is primarily concerned with managing and operating shipping lines.

Shipping in maritime can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of cargo by ship from point A to point B, or from port A to port B, or from one country to another.

The maritime industry occupies a very prominent position in the economy of nations all over the world. The industry in its strict sense embraces all the maritime related business activities which take place within the country’s maritime environment.

These include offshore economic activities such as fishing, salvage, towage, underwater resources and on-shore economic activities such as port activities, maritime transport (shipping), ship construction, repairs and maintenance activities.

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