The paper "Multinational Corporation in Nigeria: Shell Petroleum Development Company" is a wonderful example of a case study on business. Multinational enterprises (MNEs) are corporate enterprises that produce goods or deliver services in more than one country. These are perceived to entail business enterprises that run their operations in several different countries (Ozoigbo & Chukuezi, 2011, p. 380). Generally, these enterprises are headquartered in their parent or home countries, but they operate in several other countries. MNEs have immense investments in host countries, but they lack harmonized product offerings in every host country.
The MNEs pay keen attention to tailoring their goods and services to match the individual local market demands. MNEs are hailed for their immense contribution to economic globalization. The distinctive character of this occurrence is the increase in the number of nations taking part in the world economic integration. This level of integration is achieved via three main channels: international capital movements, international exchange of knowledge and technology, and most importantly, through international trade. The motivation for choosing to discuss Shell Petroleum Development Company (SPDC) as an MNE in Nigeria Shell Petroleum Development Company (SPDC) is a subsidiary company of a multinational company (Royal Dutch Shell plc), which is headquartered in The Hague, Netherlands.
SPDC is the leading fossil fuel producing company in Nigeria. The MNE first started its oil exploration business at an oil field in the Niger Delta in the year 1956, and its first export was in the year 1958. Primarily, SPDC explores and produces crude oil, liquefied natural gas, and other oil products. Like any other oil company, SPDC influences the Nigerian economy both in a positive and negative sense (Ozoigbo & Chukuezi, 2010).
The economical and environmental effects accompanying the operations of an MNE such as SPDC cannot be divorced from each other. The effects have a way of interlocking. For instance, oil exploration and production have impacted the livelihood of the citizens residing in the oil-producing regions of Niger Delta, Ijaw, and Ogoni. Contrary to the expectation that the oil in Nigeria would rank the country among the world’ s wealthiest countries, Nigeria continues to struggle in the ranks of Africa’ s poorest nations (Ozoigbo & Chukuezi, 2010).
Akintunde A.O., 2008. The Role of International Business Operations and the Impact of the Political Environment in Nigeria: a Conceptual Framework Study based on the Banking and Oil Industries. Florida: Universal Publishers.
Anonymous. 2011. SPDC Orders Line Pipe from Nigerian Company. [Online]. Available at: http://www.pipelineandgasjournal.com/spdc-orders-line-pipe-nigerian-company [Accessed on March 27, 2012].
Haller, T., 2007. Fossil fuels, oil companies, and indigenous peoples: strategies of multinational oil companies, states, and ethnic minorities: impact on environment, livelihoods, and cultural change. Berlin: LIT Verlag Münster.
Oluwanisola, S., 2010. The Impact of the Oil-Producing Multinational Companies on the Nigerian Economy and Environment. [Online]. Available at: http://EzineArticles.com/?expert=Oluwanisola_Seun [Accessed on March 27, 2012 ].
Ozoigbo, B. I., & Chukuezi, O.C., 2011. The Impact of Multinational Economies on the Nigerian Economy, European Journal of Social Sciences,19(3): 380. (Online). Available at: http://www.eurojournals.com/EJSS_19_3_06.pdf [Accessed on March 27, 2012 ].
Pearson, S. R., 1970. Petroleum and the Nigerian economy. California: Stanford University Press.
Taylor, M., 1983. Studies in the spatial development and economic consequences of multinational corporations. London: Croom Helm.
Ugochukwu, C., & Ertel, J., 2008. Negative impacts of oil exploration on biodiversity management in the Niger Delta area of Nigeria. Impact Assessment & Project Appraisal, 26(2): 139-147.
Uwakonye, N.M., Osho, S.G., & Anucha, H., 2006. The Impact of Oil and Gas Production on the Nigerian Economy: A Rural Sector Econometric Model. International Business & Economics Research Journal, 5(2): 61.
Walters, D., 2010. Africa’s cursed black gold: Analyzing Nigeria’s oil industry. [online]. Available at: http://www.consultancyafrica.com/index.php?option=com_content&view=article&id=530:africas-cursed-black-gold-analysing-nigerias-oil-industry-&catid=82:african-industry-a-business&Itemid=266 [Accessed on March 27, 2012].