Effect of Exchange Rate on Manufacturing Industries in Nigeria
Content Structure of Effect of Exchange Rate on Manufacturing Industries in Nigeria
- The abstract contains the research problem, the objectives, methodology, results, and recommendations
- Chapter one of this thesis or project materials contains the background to the study, the research problem, the research questions, research objectives, research hypotheses, significance of the study, the scope of the study, organization of the study, and the operational definition of terms.
- Chapter two contains relevant literature on the issue under investigation. The chapter is divided into five parts which are the conceptual review, theoretical review, empirical review, conceptual framework, and gaps in research
- Chapter three contains the research design, study area, population, sample size and sampling technique, validity, reliability, source of data, operationalization of variables, research models, and data analysis method
- Chapter four contains the data analysis and the discussion of the findings
- Chapter five contains the summary of findings, conclusions, recommendations, contributions to knowledge, and recommendations for further studies.
- References: The references are in APA
Preamble of Effect of Exchange Rate on Manufacturing Industries in Nigeria
In this chapter we shall be reviewing some of the relevant literature relating to the subject matter. The review will begin with a brief discussion on exchange fate, we shall examine the various aspect of exchange rate. We shall also examine the effects which these aspects of exchange rate has had on the manufacturing industries in Nigeria.
CONCEPT OF EXCHANGE RATES
Exchange rate has been defined in so many ways either in terms of its role or function.
Lipsey and Steiner (1989) defined exchange rate as the price at which purchases and sale of foreign currency take place. It is the amount of one currency that must be paid in order to obtain one unit of another currency.
Ajayi (1995) In his own definition sees the exchange rate as the relative price of two assets in one country in terms of another.
FIXED VERSUS FLEXIBLE EXCHANGE RATE
In a flexible exchange rate system, the Central Bank allows the exchange rate to adjust to equate the supply and demand of foreign currency. A flexible or free floating system means that the force of demand and supply are left entirely to determine the exchange rate without official intervention in the foreign exchange market. While a fixed exchange rate system is one by which a given country has its nurrerly’s rate of exchange pagged at a given parity rate in terms of some international money or currency. In such a system, the central Bank agrees to maintain the value of their currency within an agreed narrow band of fluctuations. The central Bank intervention is usually regarded as the official charges in exchange rate (Olukoy and 1992).
REAL VERSUS NOMINAL EXCHANGE RATE
The nominal exchange rate is the price of one currency in terms of another. The concept of nominal exchange rate is important in many respects. It determines the cost of imports to importers and the level of revenue to exports. While the real exchange rate attempts to measure the rate at which goods and service are exchanged between the domestic economy and the rest of the world. However, the real exchange rate is defined as the nominal exchange rate deflated by the under of relative inflation rates (A Jayl, 1995).