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How Foreign Direct Investment and Management Style Affects Organizations Performance

In: Business and Management

Submitted By quantumopera
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Pages 52
1 INTRODUCTION Nigeria as a nation is a democratic country with over 170 million people. With a presidential system of government. It comprises of 36 states and 777 local government area.
The connection between Nigeria and China dates as far back to 1971. At the same time when penning this thesis the president of Nigeria is in china to expand this relation. The Chinese Ambassador in Nigeria, once said sometime last year that China and Nigeria have longstanding relations that dates back as far as 45 years. Nigeria is China second biggest trade partner in engineering in Africa. It supposed that by the end of next year our relations of trade will be as high as $13 billion
China is still to build a world renowned company like General Electric and Apple. The impression most of the foreign countries have of china is that their business men and entrepreneurs are out to gather wealth, rather than for business strategy, innovation and style of administration. But yet china has one of the most effective business management approach in the 21st century. The Chinese administration cannot be like the Japanese six sigma or invent new management technique, but offers more skills of business management than companies more occidental could offer. The Chinese businesses offer administration's common imperatives: responsiveness, improvisation and flexibility. These competencies supplies them a critical facet. The Chinese Companies have discovered to handle differently over the past 30 years considering they have to work in a fast paced surroundings. Because of the fast changing business world most of company is still to adjust to the changing business system, whereas the companies have to.
These factors outlines the key factors that increase Chinese commitment in Africa. They see it like an opportunity to charge to a new markets and well when a technique influenced via world-wide political explanations. Nigeria is critically primary to China for his geographic location; big unexploited market; and richness in all forms of resources. Kurlantzick, Shinn and Pei (2006) besides it is assumed that Chinese companies are better suited to deal with all the political risk and limitation in many African countries, this is because Chinese companies are used to such environment than compared to western multinationals. Besides African countries seem to find China's state-development pushed without politician re-form very appealing, because it offers new release and individual approximation to progress. China's renewed curiosity in Nigeria, when famous earlier, seems to be linked to the dramatic fiscal up-ward pushed in China when well because the increasing worries of protection of useful resource that are involving this sure progress. To study the function of the Chinese investments in Nigeria and other related assertions more carefully, I thereby pose the question of next study:

1.1. Research Questions 1) How effective is Chinese business approach in Nigeria? 2) How has OFDI benefited Chinese firms in Nigeria? 3) What are the major challenges Chinese businesses encounter in Nigeria?

1.2. Aims and Objectives
The purpose of this research is to measure the impact of Chinese FDI in Nigeria and Chinese companies that operate in the country. My objectives is to measure performance of Chinese management approach in Nigeria and this would be achieved by looking at the following parameters: * Source of Fund. * Profitability. * Length of time in Nigeria. * Industrial Classification.

1.3. Background to the study

Nigeria and China are the 2 biggest economy and the biggest population in the continent, which is Africa and Asia. Nigeria is seen as one of the most potently rising economies amongst the developing world. Nigeria is rich in mineral resources and the largest exporter of oil in Africa, these makes it an attractive economy to invest in. Most recently Nigeria as a nation has witnessed the arrival of many Chinese businesses in various sectors of the economy mostly in manufacturing, construction, retail and more.

1.4. Purpose of the study The point of this thesis is to determine the nature of Chinese businesses in Nigeria. We also seek to evaluate the performance of Chinese businesses from the eye of the Chinese business owners themselves. Our purpose is accordingly to examine Chinese OFDIs from a brand new viewpoint by analyzing a number of selected corporations that illustrate Chinese investments in Nigerian and Chinese strategy to business management. We then practice these findings on our theoretical framework. The aim is to with a bit of luck make a contribution to new findings and results within this discipline, whose significance has now not been addressed so far as concerned. Sooner or later, it also seeks to furnish ideas and possible solutions to the issues.

1.5. Limitation to the study Because of the size of the subject and the process of the research, it used to be now not possible to cover each element of the industries. Only some recognized sectors were used as a pattern populace. There was once additionally the obstacle of assembly the business owners throughout place of job hours for interviews, particularly for those in building industries. I was once not permitted into the compound of the firms, even as when it comes to the workers in the real estate industry, given the nature of their jobs, they had been almost always at the more than a few sites this made it hard to see them. Some of the questionnaires were not returned back for analysis. We also encountered problems in communication as some of the business owners could not speak English. Finally it was very difficult to get many of the privately owned business owners to fill out questionnaires, as most thought I was a government official spying as a student.

4) REVIEW OF LITERATURE

2.1. Conceptual Framework
There's a lack of vital literature peculiarly on Chinese small business company in sub-Saharan Africa. So much of the literature on Chinese involvement in Africa is on significant scale structural initiatives, most often accompanied via delicate loans. Target nations are those rich in natural resources. The Chinese government from the 1980s, foresaw its growth trajectory to be totally based on commodities and based increasingly on open economic policies, the important motivations for Chinese investment in Africa are vigour security, entrenching export markets for their low–rate merchandise, and strengthening their worldwide political positioning by way of garnering help via South South relations. Chinese government investment is mostly in Zambia, Angola, Nigeria, Kenya and Ghana and is marginal in assessment with its investment elsewhere. Nevertheless, China’s presence on the nation Nigeria is growing and China is prepared to work in Nigeria, regardless of any setbacks, for decades of return (Chan 2012:20).
Over the years, there have been little studies on Chinese business in Nigeria, interdependence on China-Africa aid relations, a thesis on China-Africa marriage and recently Dr Gido Mapunda published his writing on An African perspective of the globalization of Chinese business practice. The World Bank also published on its website an article on Linkages between China and Nigeria. A Journal of Business management published an article on volume 5, no 9, September 2010. The effect of Chinese business investment in Nigeria. There have been series of publications on China-African relationship over the years, but non to date on performance of Chinese companies in Nigeria.

2.1.1. Globalization of the World The Globalization has been defined as the world bringing together financial, economics, trade and communication integration. It thus suggest the opening of small and large market, forging it into one market with free transfer of goods and services. Effort to remove all country extensive limitations to the free movement of the global capital and this process is accelerated and facilitated by means of the supersonic transformation in science of advantage (Tandon, 1998). It presents with the developing breakdown of borders of exchange and the increasing integration of world-wide market; that is evident of his push for free economy market, liberal democracy, well governance, equality of gender and environmental sustainability between two holistic values; (Akindele, Gidado and Olaopa, 2012). Has the skills of wiping out of industrial group in Nigeria, the questions are: it is prepare to face the realities of this world-wide phenomenon, what needs to be done? (Ohuabunwa, 1999). When world integration of progresses of economy and grows severe extra, the explanations that increase effectivity of priceless resource and enter utilization in the economic system world-wide like areas and international locations specialize in step with his comparative knowledge and product gadgets and elections in his expenses of possibility lower (Give, 2013). This gospel has been preached relentlessly with the help of the instruments of globalization particularly the International Monetary Funds (IMF), World Fiscal Agency, World Trade organization (WTO) and the G8. The rules and legal guidelines of those companies have compelled a lot of nations from the beginning to undertake free to alternate political and liberalization. Like consequence, inside the fair end a few a long time, there have been formidable efforts in so much of the establishing world to liberalize exchange and streamline protectionist tariff regimes (Zafar, 2005). Thought of normal trade involves that advantages of liberalization of the trade to a more effective allocation of resources, upper productiveness, and fiscal progress more (Zafar, 2005). Hammouda (2004) in his being taught applied in behalf of the economic commission for states of Africa and his alias: the unanimous agreement in the priceless effects in development and progress to alternate the liberalization goes again to the emergence of the consensus of Washington in the early 80’s that arose in maintaining with the public prosecutor hindrance affecting more establishing international it-cations in the time, carried in by the debt predicament. The consensus of Washington looked for to maintain that important drawback by way of Structural Adjustment Programs (SAPs) with support of IMF and World monetary institute to the help that establishes the countries fix important macroeconomic balances, the alternative to liberalize external alternates was once a part of that wide group of the reforms aimed toward restoring essential macroeconomic balances, selling growth and doing improvements to the global integration to build world renowned company. It alternates liberalization in and of him there be now no but been unambiguously and universally linked to subsequent fiscal development, in spite of the nice literature that looks in this hyperlink, countless empirical experiences have now no determined the proof conclusive (Ahmed & Suardi, 2009, Dennis, 2006; Rodriguez & Rodrik, 2001; Tussie & Aguo, 2007) even so like substitute the results to alternate the liberalization is a lot much less clear-cut with little or no optimistic effect in efficiency of development in Africa (Ahmed & Suardi, 2009). The educative Experiences have tested that the primary impact of the liberalization in flows of exchange is to increase the demand for export, that is, following liberalization of exchange, the countries tend to buy bigger that promote each year and for this reason, his alternate steadiness worsens; when the import raises, demand inside the nation stop in the objects produced next fallen, from the fact that the people are purchasing elements mattered enough, nearly, the regional producers are priced out of his markets by new, more cost-amazing, higher marketed elements. Melamed (2005) Posited that the losses sustained by means of using Sub-Sahara African international locations for this reason of two decades of liberalization of exchange down World-wide bank/IMF fiscal programs some ways surpass the forty billion buck valued in of remedy of debt furnished via the G8 summit. It alternates the liberalization has cost Sub-African Sahara 272 billion dollars on twenty years. Trendy The Proof of the Nations Joined indicates that nations that liberalized his more tended exchange to experience of raise in poverty. There has been a relation of exchange elevated be-tween Nigeria and Chinese which has raised a number of exact disorders between manufacturers of coverage and the local industry; this idea hence examines the implication of the trade loved some members between the two international places in the economy of house in Nigeria. The amazing the aims are to: register the reward alternates files of familiar participants between Nigeria and China; control the perceptions of companies of local manufacture and entrepreneurs in the participants of house of the exchange between Nigeria and China; and talk in considerations to the kinds that can be realized via Nigeria of China's emergence like world-wide big name.

2.1.2. Nigeria and China Friendship
Even though Chinese retailers and industrialists had some foothold in Nigeria way back 1960’s, formal bilateral relations didn't start until February 10, 1971 with the signing of the Joint agreement on the school of Diplomatic relation and the institution of the Chinese Embassy in Lagos. China-Nigeria relation had been gentle and constant, as each international locations have supported and co-operated with each and every special on a number of disorders on the international stage (China-Nigeria meetings, 2014).
The developing cooperation between the 2 countries has resulted in the signing of a quantity of agreements in alternating, funding selling and defense, friendship and mutual help. For example, in the case to fund deals, in July 2005, China and Nigeria signed a deal of sale of raw oil USA of value$ 800 million between China Petro china worldwide and the Nigerian country of extensive Nigeria Petroleum manufacturer at the same time like China offshore producing of oil CNOOC agreed to phase with $2.3 billion For a participation in the oil of Nigeria and area of fuel (China daily, 2007). Besides there has been accelerated alternate visits between the lot of political and human administration of industry of each global locations, when witnessed inside the final seven years (China-to Nigeria loved him some participants, 2014).
One more has an impact in of the co-operation has been the growing float of migration by way of nationals of each and each global locations. In 2014, the legit number of Chinese dwelling in Nigeria used to be as soon as one 120,000 together with 600 of Taiwan. This number, in maintaining with officials of the provider of Immigration of the Nigeria, is estimated to have grown especially of 70,000 in 2007, representing a big growth. This development suggests a standard pattern in Chinese migration to the nation and is expected to grow for at least still like this a different 10 years. The increasing flow of the Chinese migration also will be attributed to China quest for materials and markets for his goods and services. Elements and offerings of China had been probably slight industrial objects, textile, electrical and digital elements, when well when an establishing retail sector of service. One another reason is the opportunities of big funding inside the country, generally in sectors harking backwards to oil and fuel, development, manufacture, agriculture etc. And elections. (Nigeriafirst, 2006)

2.1.3 FDI Flow to Nigeria
Nigeria is one of the few African nations that have benefited of foreign Direct Investments (FDIs) to Africa in an alternatively constant price, when tested in table 2.2. Nigeria's percentage of Africa's whole FDIs in 1990 used to be on 24% even so this fell to 20.47% by late 90's. It fell even to a minimum 0f 6.88% in 2001 even so taken the following yr. To 11.47%. In maintaining with 2015 information of the conference of countries joined in trade and development (UNCTAD), Nigeria used to be Africa's 2nd FDI recipient, after Angola, in 2011 and 2012. The year 2014 saw a pointy decrease in FDI in Africa and Nigeria because of the Ebola outbreak in West Africa.

Table 2.2 Nigeria’s Net FDI inflow (US$million) Year | Africa | Nigeria | 2010 | 498 | 903 | 2011 | 18967 | 1401 | 2012 | 10899 | 1218 | 2013 | 15303 | 1301 | 2014 | 11670 | 980 |

Table 2.3 explains the inflows of all Nigerian’s FDI 2012 and 2015. By 2012, Nigeria gained $ 12,127 million, which rose US$ 14,978 million in 2013. But Nigeria experienced a decline 2014 to $10,956, largely due to the Ebola health crisis in the country. (UNCTAD WIR 2016)

Table 2.3 Nigeria’s FDI inflows, 2012-2015 (US$ million) Year | Amount | 2012 | 12127 | 2013 | 14978 | 2014 | 10956 | 2015 | 12454 |
Source: UNCTAD World Investment Report 2016

2.1.4. Foreign Direct Investment analysis from 2007 to 2015
FDI in Nigeria accelerated by way of 510.74 USD Million in the chamber quarter of 2015. Direct funding foreigner in Nigeria averaged 1267.67 USD Million 2007 to 2015, achieving an everything-high time of 3103.87 USD Million in the chamber quarter of 2012 and a register down of 510.38 USD Million inside the fourth quarter of 2015. The FDI in Nigeria is suggested by means of the financial institution imperative of Nigeria.
2.1.5. Sectoral composition of FDI, 2000-2015
Table 2.4 this shows the sector by sector analysis, from 2000-2015. The non-oil section, from 2000 and 2004, brought in about 24% of FDIs for the country, with other industries falling behind with a rate of 2.7% and 1.3% accordingly.
From 2001 to 2015, non-oil sector has gone up to as high as 44.6%, while others fell to a low 0.3%.

Table 2.4 Sector by sector analysis of FDI, 2000-2015 (%) Year | Mining&Quarrying | Manufacturing | Agriculture | Transport &Communication | Building &Construction | Trading & Business | Misc. Services | 2000-2004 | 22.9 | 43.7 | 2.7 | 1.3 | 5.7 | 8.3 | 15.4 | 2005-2009 | 43.5 | 23.6 | 0.9 | 0.4 | 1.8 | 4.5 | 25.3 | 2010-2011 | 30.7 | 18.9 | 0.6 | 0.4 | 2.0 | 25.8 | 21.5 | 2012-2015 | 44.6 | 15.2 | 0.3 | 0.4 | 2.8 | 17.9 | 17.6 | Source: Central Bank Nigeria Statistical Bulletin (2000-2015)

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2.2. Chinese population in Nigeria
As at 2015 report 200 030 Chinese live, work and exchange in Nigeria. This number does not include those who are temporal and engaged in work of building, especially those in the Niger Delta that had to go out considering the fact that of the restiveness there. Most of the Chinese people in the country are in Lakes and Kano, while others are scattered in different states. Beside the industry of oil, the Chinese in Nigeria is very alive in the retail, manufacture, service and many other industries of the financial system Nigerian. For example, city of China retail outlets is a lot in Lakes, is vitally long-established to peer at least two Chinese, typically man of average age and woman in each alone retailer that sells all way of retail articles of sneakers to garments and textile, equipment to toys etc. Besides, the influx of the Chinese to Nigeria has been very high inside the end few years.
Nonetheless, several illegal Chinese citizens live in Nigeria. Barrier of tongue was once one cultural crashes identified the Chinese living in need of Nigeria to take care of, but that is taken care of in two methods. Most of migrants has been able to adjust to life in Nigeria because of several social net are involved inside. They live together and appoint locals like courses and tongue tutor. As Nigerian embassy in china, his declared that on 10,000 Nigerians live in china with a majority that is students. 2.3 Chinese Approach Management
Chinese Companies have discovered to manage in a different way during the last 30 years that see that they have had cope with turbulent environment. What in the general perceived to be the highly controlled course of state capitalism is surely a big and speedily evolving ecosystem, where need of companies to scramble to hold percentage with runaway growth and dramatic slowdowns, massive urbanization and enormous rural markets, fierce competition and endemic corruption.
Some scholars have linked systems of administration of a company to the economies in which they grow. Stable, complex markets, their thinking goes, require structured organizations and managers capable of tackling several dimensions, such as functions and customer types, simultaneously. Rapidly changing markets favor loosely structured management systems, which can process new information quickly, and managers who can act independently. Chinese companies (barring state-owned enterprises) tend to fall into the second camp. They are higher in energy and much more nimble than most Western corporations are. Chinese business leaders see the company like a family of collective indiduals, but demands quite a lot from them. CEOs More Probably come of humble beginnings: Three of the big company of Chinese founders all begun in the earth of unity of the manufacture and struggled to free his companies of state or collectivist administration. The different Businesses have been begun with the help of traders, lecturers, or employees. These companies build alliances continuously, the new increase merchandise prolifically, and company to unrelated organizations all the time. They supposed to maintain high premiums of progress and is cozy with a heady progress.
Business leaders in China also share two distinct perspectives. One is the view that they have to create their own ecosystems. The Chinese founder-manager believes that he or she will need to build almost everything—basic skills in recruits, suppliers, government ties, capital sources, and often schools for employees’ kids—from scratch and on a large scale. This is what Zhang Yong, who founded the fast-growing hot pot restaurant chain Hai Di Lao, does when he enters a new market. One of his key success factors is the ability to spot, recruit, and retain teenagers capable of growing into store managers by the time they are 21. Zhang tests trainees by assigning them tasks above their responsibility level, such as negotiating the takeover of a rival chain. That allows him to weed out those with low potential.
Because management bench strength is the biggest constraint on his company’s growth, Zhang deepens managers’ commitment by offering generous incentives, trips outside China, housing, and education for their children. He creates his own suppliers by offering wannabe entrepreneurs contracts that promise lots of business in the future. He is also a master at pulling together the capital he needs from varied sources: local governments that offer financial incentives and subsidies, Chinese Communist Party angels, provincial investment funds, and friends of friends. To a large extent, the ability to do that depends on forging personal relationships and showing that he can help bureaucrats meet their goals. Credit ratings aren’t necessary; it’s about who can be trusted.
The other point the Chinese entrepreneur share is that they must be as adept at managing the state as they are at managing operations. For a long time the Chinese Communist party barely tolerated confidential companies. Start-united states had no standing, so traditional sources of uncooked materials, talent, and cash were closed to them. Chinese entrepreneurs nonetheless need to tap officers to get licenses to operate, hire house, in finding staff, import materials, and lift capital. However, they've realized to make the approach work for them.
The outcome would have involved Charles Darwin, whose research all for how one-of-a-kind species evolve in response to environmental pressures. If there's a industry an identical to the Cambrian interval of explosion and extinction of species, China from 1991 to the gift is it. Many entrepreneurs fail in China, however the survivors grow to be ingenious, bendy, and fierce competitors. In fact, well will be the vanguard of a generation where the potential to adapt quickly, navigate messy surroundings, and use unproven harvests of skill competitive expertise globally.
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2.3.1 China’s Wonderful Approach to management
Most of Chinese companies show a buying and selling mentality that values turnover of excessive advantage and properly timing on perfection; a Confucian preference for simple organizational structures, with each-one informing to the top; a deep fear, stemming of previous China instability, of an excessive quantity of debt; and skill in treating distinct phases of the powerful state. The big businesses, even so, is outlined by something extra: excessive aspirations and an openness to experimenting with radically methods of specific and practical administration. I. Simple Company Structure.
The leaders of trade of China are notorious to control companies of the top, even so what is least well identified is how much they decentralize, which helps them answers to changes of market and quickly add new business areas. In China the need for adaptation is steady, and includes to retain any longer fair with the market but also with variations in the development of each and each province and the power of government officials.
Considering the fact that such variations also will be stark, the Chinese companies create structures that supply unities of industry total autonomy. Consider Midea, China 2nd biggest home appliance manufacturer, centered in Shunde, a city bordering with Hong Kong. Midea manufactures all of vacuum cleaners and small water heaters to micro-waves and air conditioners. Most of its products lines operate as an independent company rather than a a big sized company. Each trade has a responsible leader for his P&L, who has the authority to build a strength of income, ranges providers and outlets, and construct factories the place the excellent incentives are available. The proposal of synergies during the unities has been mostly put apart; the focus is in autonomy and accountability.
Midea employed 126,000 staff and generated $18.7 billion in income in 2013; with the aid of evaluation, Whirlpool had 69,000 workers and $19 billion in earnings globally. For that reason, Midea had practically twice as many workers per unit of sales, reflecting one of the most duplication of effort inherent in its organizational procedure. Of course, Chinese companies produce extra in-condominium and pay staff lower than their Western counterparts, so Chinese organizations can have enough money to rent extra men and women. And in a nation with little business infrastructure such as logistics providers, distributors, and retail chains, corporations want a lot of manpower to grow.
The Chinese entrepreneurs ‘sees studied has so a lot of direct experiences and possible; these leaders take the idea of decentralization and flat buildings to the severe. Haier, the dominant house of Chinese manufacturer of equipment, comprises hundreds and hundreds of mini companies, everything informing to the president. There is no installations of pure cost; even the capacities of department of the finance independently, providing funding and advisable offerings for a cost. Even so the Occidental companies believe that more than one informing shield of traces them of risks, reminiscent of uneven product requisites or hiring practical, even when enabling scale effectivity and discovering advantages, more Chinese founder-CEOs eschew this suggestion. They pursue development of prime line in any index and believe in buildings that support speedy growth. Certainly, improvisation and step, coupled with the low costs pushed with the help of economies of scale, creates enormous disruption inside and external China.
The Companies in China handle in two frames of time, executing at present's business even when preparing to fold in measure in in any place of three to five years. This involves no simply adding resources even so incubating elements of new trade and launching new marks. In the states joined or Europe, the head of unity of the industry probably would handle each frames of time, but Chinese entrepreneurs in most of cases appoint two directors, each and each self-sustaining and dependable for one times period and, with ease, competing for advantages. Leaders of Chinese tongue choose direct clash to delicate extra, buildings of administration of the cooperative that involve all his experiences even so function out of his view. The majority alternatively rent more legs and arms that create new pass-organizational functions.
Wise Chinese executives elections of mark in an announcement hoc method and is micromanagers. Essentially most of-looked for-after the employees are executive in nature, able for the hard-and-tumble, and no-first academic kind
Wise Chinese executives elections of mark in an announcement hoc method and is micromanagers. Essentially most of-looked for-after the employees are executive in nature, able for the hard-and-tumble, and no-first kind academic candidates, who are inclined to gravitate to state-organizations possessed. The main Subject is, entrepreneurs is probably to leave so quickly when they signal on, which is why the turnover in the exclusive companies of China is upwards of 20%. Besides, most of companies have reversed little in talent retention and (different Hai Gave Lao) is susceptible in the subject of coaching, suggestions, and training. II Homemade value ideas
Most of China remains to be setting up, which means that it is marked through inexperienced shoppers, undercapitalized corporations, no-identify manufacturers, and designated regional industry customs and traditions. The definition of great, for example, displays regional desires. Construction firms can pay a premium for cement with fast dry rate or can be poured in cold weather, for the reason that they wish to construct at highest pace and every day of the week. They'll now not pay a top rate for long lasting cement. Similarly, a Chinese company won’t pay for such either. Localization presents companies a strategy to seize value via what they present purchasers and partner.
Also their rise to the top of the development apparatus trade in China shows unique the undertaking of switching to nearby buyers. The manufacturer two bigger product the traces are in a position-vehicles of cement of the mix and excavators, which nations developed inside are sold to contractors and anticipated to end a long time. In China are frequently sold to neighborhood leasing business, which rent them to local contractors in a work-by way of-base of work. The leasing companies, even so small, is very linked, in order that compete in his preferential access like an alternative that in durability, and the demand that funds so that they can be able to preserve his capital commitments down.
They also make cheap machine and have a very sharp distribution approach, by selling without any financial commitment. It also uses more supervisors who have an idea of their marketing approach by knowing the right people.
III Fast Product Development.

The speed with which Chinese organizations advances new products to exist sciences applied and ramp on top of production of enormous scale is in most of spectacular cases. It is a key cause that the Chinese tongue has come to dominate the global silicon-established sunlight-business of board, forcing USA and Japanese businesses to center of attention in extra-thin sign-film sunlight technological knowledge-what. Goodbaby International holdings, the boss of market of China in transports of creature and little an automobile seats, rival of beats with the help to present one hundred new products in usual each and each quarter. Chains of fast foods inside the nation, including KFC China, presents newer merchandise each and each yr that his USA Counterparts, from the next editions in style demand it.
The capacity to launch the new elections is a by way of-fact of heritage. Companies like Midea, Wanxiang, and Goodbaby begun out of manufacturing goods did not design. They realized the better way to prototype speedily to satisfy demand of buyers for fast turnaround; to adapt designs to use special substances when the usual sub-stances was too costly or unavailable; to modify apparatus in order that could do extraordinary products; and, particularly, to hold costs down. That flexibility helped Wanxiang, for example, transfer to do parts of bicycle out of the metallic scrap, to manufacture add-ons for Detroit colossal Three, to purchase and turning across the factories to struggle USA Automotive manufacturers of factor.

IV Chinese businesses usually intertwine manufacturing and engineering and most time mix them up.
V Chinese businesses get new technology by giving it out or reverse technology, but they keep the physical experiments and production within.

2 CHINA NATIONAL OFFSHORE OIL CORPORATION (CNOOC GROUP) 3.1. INTRODUCTION
This chapter will give an overview of the CNOOC. The chapter will show the history of CNOOC, products and services and also the importance of the company. 3.2. History of CNOOC
China's offshore oil industry was the first field that opened to the world after China's reform and opening policy began. On 30 January 1982, the Chinese State Council promulgated Regulations of the People's Republic of China Concerning the Exploitation of Offshore Petroleum Resources in Cooperation with Overseas Partners (Regulations) and decided to establish the China National Offshore Oil Corporation, legislatively granting China National Offshore Oil Corporation an exclusive right of conducting oil exploration, development, production and selling and completely taking charge of the business of exploiting oil resources in cooperation with overseas partners offshore from China. On 15 February 1982, China National Offshore Oil Corporation (CNOOC) was formally established in Beijing. From its very inception, CNOOC, as China's window to the outside world and a national oil corporation, has shouldered the important task of cooperating with overseas partners and developing Chinese offshore oil.
Since its foundation, CNOOC's yearly oil production has risen greatly from less than 100,000 tons to 64.93 million tons (oil equivalent) in 2010. In the 1990s, CNOOC initiated downstream petrochemical and fertilizer projects and began its overseas expansion.
The Chinese offshore oil industry started at the end of 1950s and offshore oil exploration began in the South China Sea. After 1965, the exploration focus was diverted to Bohai Bay in the north. In the early period, oil and gas discovery wells were obtained in the two sea areas mentioned above by using self-made crude equipment. From 1966 to 1972, a total of 4 fixed drilling platforms were built, 14 wells drilled and 3 oil-bearing structures were discovered in Bohai Bay, all of which helped to accumalate abundant experience for offshore oil exploration.
After 1973, the equipment began to be renewed, and a supply of jack-up vessels, three-purpose workboats (towing, weighing anchor and casting anchor, supply), and geophysical survey vessels were built in China. Methods were introduced from abroad for conducting exploration and development tests in Bohai Bay.
From 1957 until the exploration and development of offshore oil in cooperation with overseas partners, and in over 20 years of making intensive and pioneering efforts to develop China's offshore oil, the petroleum and geology units conducted gravitational prospecting, magnetic prospecting and part of seismic reconnaissance in the sea areas such as the South China Sea, Bohai Bay, the Yellow Sea and so on. The units affiliated with the Ministry of Petroleum Industry drilled 110 wells in Bohai Bay, Beibu Gulf of the South China Sea and the sea areas near Hainan Island, and industrial hydrocarbon flows were obtained in 30 wells; 3 small oil and gas fields were developed. The intensive pioneering efforts made in the early period of the Chinese offshore oil industry have resulted in considerable valuable wealth and a solid foundation, encouraging later generations to continuously strive for an ongoing successful future of the business.

3.3. Company Overview

CNOOC The biggest offshore producer of fuel and oil in China, is a state owned organization. The headquarters has been Beijing since 1982, CNOOC has advanced from an upstream petrol and oil company to a company of global power with companies of promising core and a chain of industries.
CNOOC companies cover the primary segments of exploration of oil and gas and have recorded progress in technical, engineering, refining, advertising, energy and normal fuel generation, and fiscal offerings. The manufacturer abroad the companies cover more than 40 nations.
In 2015, CNOOC ranking inside the global Fortune 500 increased to seventy two, which was 7 better areas than that in 2014. Even its credit rating moved from AA- to AA+.
CNOOC has been has been putting in enough effort to improve its rating and have kept working on its development as a company in accordance to the business development line of “One Belt, One Road” program while implementing the company’s expansion strategy. CNOOC will continue to focus on economic transformation pattern, the structural company adjustment and the advancement of exceptional development and effectiveness.

3.4. Case study: China National Offshore Oil Corporation - South Atlantic Petroleum in Nigeria. In 2006, CNOOC obtained 45% of the shares within the South Atlantic Petroleum limited (SAPETRO), a manufacturer with an oil mining license (OML) 130 belonging to one of the world's greatest oil and fuel basins in Nigeria (CNOOC Ltd, 2006). The corporation CNOOC got their stake for $2.27 billion USD (The Heritage foundation, 2014). The OML a hundred thirty covers an oil and gasoline area in the Nigerian Delta, a deep water block including different areas of oil discoveries which might be all run by way of the global energy enterprise whole. Amongst them, Akpo is the Deepwater discipline concerned within the deal, which was mentioned to begin its opera-tions in 2008 with an estimated potential of pumping 225.000 barrels per day (bpd), accordingly implying the necessity for external capital in line with CNOOCs capacity to finance such in-vestment (Wang, 2006). The acquisition wanted approval from both the Nigerian country wide Petroleum Company and the federal government in China. The CNOOCs former chairman and CEO Fu Chengyu expressed that: The buying of participation in OML one hundred thirty helps CNOOC reap entrance to an oil and subject of gas of enormous curiosity and upside skills, placed in probably the biggest oil of most of world and petrol basins. With one of the deep water main specialists like the operator of the field, have now each self-guarantee for the fast and effective production of oil.'' (CNOOC Ltd, 10 January 2006). Moreover, the deal was a part of CNOOC’s strategy to increase productivity capabilities with the aim to raise profits in the long run (CNOOC Ltd, 2009). In addition, the acquisition was believed to contribute to diversification in terms of geographic location thus reducing risks. Besides, the deal provided CNOOC with an opportunity to acquire expertise from one of Nigeria’s frontrunners in oil production, knowledge which could prove useful in internal operations in the future (CNOOC Ltd, 2006). In the deal with SAPETRO, Xiao Zongwei, the CNOOC’s spokesman, stated that such issues would not be involved in the deal. However, Zongwei’s description of the deal was more related to the company’s own interest; their source of funding, the control CNOOC would acquire over the oil field and the enhanced production capabilities the deal would bring, rather than explaining the mutual benefits of it (Goodman, 2006). The Sino-Nigerian relationship used to be emphasized by long-term contracts where China was given access to oil on the market. However, as a result of China’s strong economic performance the need for oil has sought Chinese investors to aim for ownership of the oil reserves rather than just contracting. During 1999-2007, when Nigeria was run by the president Olusegun Obasanjo, the trade between China and Nigeria was strongly supported by the president’s philosophy of exchanging “oil for infrastructure”, which was based on the Nigerian government selling blocs of oil in bidding rounds. As a result, Beijing’s response was an increased interest in Nigerian oil reserves in return for construction and energy projects, primarily financed by loans from the Chinese Exim Bank with oil as the security (Mthembu-Salter, 2009). This infrastructures will be built by another Chinese construction company China Civil Engineering Construction Corporation Ltd. In Conclusion to our findings, we can see that most Chinese companies in Nigeria are highly profitable because every income earned is used to finance another company’s project which also is used to finance another and thereby keeping most if not all Chinese SOE profitable. This answers the research question on the business performance of Chinese companies in Nigeria and source of financing of such projects. It has also answered the question of How OFDI has benefitted Chinese businesses in Nigeria.

3. METHODOLOGY
4.1. Research Design and Process
Questionnaires and interviews were used as the main source of data collection. Data collection method used structured questions. The technique was designed to collect information on: * Business performance and profitability of Chinese companies in Nigeria? * How has OFDI benefited Chinese firms in Nigeria? * What are the major challenges Chinese businesses encounter in Nigeria? * What are the conditions for success in establishing Chinese business enterprise in Nigeria? Things you must do to be successful in Nigeria * What are the significance of Chinese enterprise to Nigeria economic and social advancement? * What are the implications of Chinese business enterprises on the Nigerian economic development and quality of life? Some questions of interview structured leaves me a deal of high quality of freedom, even when covering a conjoint die of subjects in a kind of systematic way. (Moser And Kalton, 1973). The kind of structure achieves far out of the inflexibility of constant and formal questions, but offers the interview a form of group and be sure that all important subject is spoken. 4.2 Qualitative Method The distinction between quantitative study and qualitative the research is that the previous focus in explanation and analysis in a statistical degree the place the gathering of the information is emphasized via structure, standard and unities of summary. Then again, qualitative re-focus of research in the complexity of a phenomenon inside a context of trade that professional vides a vital extra, reflexive and analytical approximation (Eriksson & Kovalainen, 2008). Besides, Ghauri and Granhaug (2005) means that qualitative the research is priceless in particular when previous ideas a few phenomenon that can be researched is 17 moderates. This shows that the technique is usually instead exploratory and flexible in a sense that the problems are indistinct consequently of modest ideas. This thesis has been written headquartered in a qualitative research technique because the aim has been to recognize the causes in the backwards of Chinese investments in African organizations and well when his implications in fiscal development inside the receiving international locations. When the investigation has posed analytical challenges and continuous information required assortment like way to be compared, interpreted and mentioned, found this re-approximation of research most of suitable. 4.3. Case Studies Approach When writing a thesis a few approximations of research can be utilized like surveys, past historical and archival files. The methods of study all vary in the way the empirical proof is being purchased and analyzed. In these experiences of case of the thesis were utilized for the subject chosen. The case learns the procedure is valuable when the similar questions to which and why is raised and when an overhead description and aimed of a phenomenon is required. In the case informs a wide range of evidence is used reminiscent of interviews, files, artifacts and observations (Yin, 2003). Generally, building theories around the inductive model has been the preferable choice when conducting a case study. However, Welch et al. (2011) keep a relatively open-minded view of modes in theorizing case studies and give another explanation of approaches to conducting case studies, stating that there are multiple alternatives other than the inductive method. The second alternative predicates a case study on natural experiment as a way of transforming existing theories, whereas the third relates to case study by focusing on interpretive sense making, which means that the context or action is interpreted by emphasis on human understanding and experience. The fourth and most recent alternative in methodological literature refers to case study as an ability to obtain a contextualizing explanation. This alternative focuses less on uniformity, aims to find causes-of-effects explanations and to integrate the context into explanation. All four alternatives have their advantages and disadvantages depending on what aspects that are focused on in the case study. However, Welch et al. (2011) argue that the classification of case studies are often difficult to make and that the way case studies are carried out are known to be hard to differentiate compared to other qualitative methods. 4.4 Data Analysis Method
Knowledge of the questionnaire and the interview had been collated and recorded inside the form of descriptive base in the important suggestion cues supplied for the period of interviews. With a view to the scale backs the danger of misinterpretation and trivialization of the result via some readers, this qualitative interpretation transcended the merely descriptive (Merriam, 1998. P. 138)
Where primary, evaluation of speech was used to analyse the important documents to this the-sis. These had been regularly statements of executive politics in Nigeria-political China and monetary familiar members. Compatible with McHoul (in fisher and Todd, 1986, pp.187-202) this process.
Recognize that a social fabric is constituted and saturated by means of discursive training, that coverage, the coverage that does, writers of politics, reports of politics and so forward effects of determinate method of signification, and that these approximations of signification provides the idea's the conditions of likelihood of politics.
A qualitative the study is almost a form of interpretive study. In step with Erickson (in Merriam, 1988, p. One hundred sixty five) this variety of study presupposes that the fact is holistic, multidimensional and never changing; it is not a solo, fixed objective phenomenon ready to be dis-covered, discovered and measured.
This be taught is put real people with in problems. The Order in this society is customarily unstable and changeable. Intent And the result is synthetic suggestion, which oversimplify complex, steady techniques of metamorphosis and ambiguity ( Kellehear, 1993. Pp.26-27). Of a qualitative perspective of researchers, the social science would have to go out to the world-wide but with more effective a want to hear and take part and no to impose an idea restructured to the world. One has to bracket one's previous imagining out of roughly specified social phenomena and in-tempt to appreciate these procedures of the factor of view of the experience.

4.5. Empirical Study
The empirical study consist of questionnaire given out to find out the performance of Chinese businesses and investment in Nigeria, and how OFDI affects these businesses. The questionnaire was given to 42 Chinese businesses in Nigeria, from different sector of the economy. We only got 30 of them back. A descriptive method was used to analyze the information. The bases of measurement are as follows
FDI benefits: This looks at the respondents view on how FDI has benefited them
Sources of funds: Here we pay attention to how Chinese businesses are funded in Nigeria.
Business Challenges: We also looked at the various challenges these businesses face in the course of business operation.
Industry classification: We classified these businesses by industries.

4. RESEARCH FINDINGS 1.1. Introduction
This segment will attempt to highlight and talk about the outcomes and the discoveries taking into account the investigation done on the information gathered from respondents. Then we will focus on the outcome of the case study. Concluding by attempting to achieve all the goals of the study. 1.2. Questionnaire Analysis
As stated earlier 42 questionnaires were given out and only 30 were returned for analysis. i. Gender:
In the 30 companies, 18 of them where managed or run by men which is 60% of the survey, while 40% were women 12. ii. Length of time in Nigeria:
We discovered that 40% of the respondent are new comers in the Nigerian business sector, having stayed and ran business in Nigeria for less than 3 years. 23% have been in Nigeria almost 5years, while 37% have been in business in Nigeria for 8 or more years. iii. Industrial Classification:
The 30 respondent have been classified into 7 industries listed as follows, manufacturing, wholesale and retail, computer and office supplies, construction, real estate, oil and gas and others. Due to the difficulty in getting access to the big investment companies 30% of the respondents were from wholesale and retails. Details of the industrial class can be seen in the pie chart below

Pie Chart Analysis of Industrial Classification

iv. Business challenges:
Just like every business in the world faces challenges, so are the businesses in Nigeria too. We discovered that the 30 correspondents all face similar problems but the most common were:
Poor infrastructures
Electricity and power
Funding
Poor business enabling environment v. Source of Funds:
We tried to find out how most Chinese businesses which function in Nigeria source for funding, we limited the questions to 4 variables of self, banks, government and other arrangements. We discovered that of the 30 respondents 63% are self-funded, 20% source for funds from the banks. In the 6 respondents 4 of them are financed by Chinese banks, while 2 of them are financed by Nigerian banks. We also discovered that the ba stries. The remaining 17% picked other arrangements as a source of fund. This details can be seen in the chart below.

Table 5.1: Graph showing distribution of source of fund

vi. FDI Benefits: This particular response gives answers to one of the research questions. How has OFDI benefited Chinese firms in Nigeria? The 30 respondents reacted to this question with 90% of them saying NO, they have not seen any benefit both directly and indirectly of the FDI. 3 of the companies which is 10% of the respondent said YES they have benefitted from the FDI. Those who benefitted were one Oil & Gas Company and two construction companies. Further interview questions were conducted with this companies to know how they benefitted from FDI. They mostly benefitted from this investment through implementation of government contracts both from Nigerian and Chinese government.

Vii Business profitability:
We also tried to measure what percentage of the businesses were profitable in Nigeria. 60% of the respondents said business has been profitable, while 40% said business was not profitable. 80% of the unprofitable companies which is 8 companies are under 3years in Nigeria. One thing they all agree on (all of the 30 companies) is that business in general the past year has been really bad, due to the Nigerian economy suffering from the oil slump.
Tax Payment and Government support:
We also asked for their tax return in Nigeria and China which they all acknowledged they pay. In terms of support from Chinese government, 90% said they don’t get help of any form from china, but 10% which is 3 of the companies said they do.
Advise to future investors:
Due to the general fear harbored by most Chinese investors on investing in Africa, we asked the 30 respondent companies if they would recommend Nigeria as a hot investment haven. 18 of the respondent which is 60% said YES they would recommend Nigeria for the other Chinese businesses, while 40% which is 12 said NO. Their reason being that Nigeria is a difficult place to do business.
1.3. Choice and Analysis of case study After having conducted a case study research, we agree with Welch et al. (2011) that the type of method used is relatively difficult to define. However, we have found that among the given four alternatives, the most recent development, contextualizing explanation, fits best into our research approach even though it has elements of the inductive one as well. We motivate the decision by the fact that our focus is to understand the context and gain an in-depth knowledge without sacrificing causal explanations. By contrast, an inductive method has less focus on the context integrated into explanation and tend to prioritize a rather law-like explanatory and descriptive view more than an analytical and causes-of-effect explanation. In this study of case i has all to study an intensive case when an alternative than touching to an enormous variety of the cases like my purpose is to increase the capacity to do extra inside-findings of depth, analyse and conclusions of draw. This selection also suffered of the truth that the accessibility to valuable knowledge-which in a micro-the stage has been limited, consequently main to the resolution of study of case especially founded in accessibility and relevance. Even so, the Chinese international Investment Tracker (The base of Heritage, 2014), a register with international investments Chineses in a stage of company between 2005 and 2015, has been my most of priceless supply. The list enabled me to achieve an overview of Chinese investments, which helped me to choose my study of case. More peculiarly, the list offered me with useful knowledge-which on the reversing company, the company in the host country and the measure of shareholder, a quintessential foundation that did it possible to prefer probably most of intriguing cases and proceed with a more specific research. In my being taught proceeded with a quantity of criteria when opting for our knowledge of profit of the case of. The reversing the Chinese organization is a giant MNEs that is state possessed CNOOC. We found that CNNOC has been very profitable and has funded several infrastructures in the host country. Their major source of fund has been from the china Exim bank which has also acquired shares in a local Nigerian Bank, the cash payment was used to build high level infrastructures, which was constructed by another Chinese SOE China Civil Engineering Construction Corporation Ltd (CCECC). 1.4. Consequences of Chinese FDI in Chinese businesses.
Due to the fact that we analyze the implications of Chinese OFDI in Nigerian situated Chinese firms frequently from a Nigerian standpoint and a bunch nation perspective, our purpose is to check out to provide an explanation of the penalties of Chinese OFDI in Nigerian headquartered Chinese companies as we think that the consequences are slightly regarding their performance. Like part of the efforts to build, enhance and strengthen infrastructural services inside the nation, to be able to beef on top of partner operations and monetary routine, successive governments in regional, the states and the federal phases have committed awareness and advantages to the areas of infra-structural progress. The Emphasis has been placed in street, rail and vegetation of energy buildings the place the Chinese has been full of players of life. For illustration, the Rivers the state government is an element of a company of joint assignment to build one one hundred twenty five km avenue of six ways in Port Harcourt. A further task is the modernization of Nigeria's a-reveal rail to original gauge rail of Lakes to Kano by Abuja. This line of rail is to be built in 5 segments on some 5 twelve months interval and can price on USA$ 9 billion. Distinct engineering and building the tasks awarded to the Chinese companies had been recently completed even when others that also can be on the other hand on-going can be apparent in the sector of power

1.5. Summary of Empirical Findings After having compiled the results from our questionnaires, we could see that Outward Foreign Direct Investments (OFDI) have not benefitted most Chinese firms in Nigeria. Only the State Owned Enterprises have benefited especially the ones in the construction and oil & gas industries. One thing they all have in common is that they all face the same business challenges in poor infrastructures, electricity and poor business enabling environment. I learned that the reason and expectation on the business through china entrepreneur were just like any individual run (privately owned and operated) business corporation – to maximize profitability. In terms of relationships with the Nigerian populations, they in most cases felt the Africans have been friendly and welcoming. To that end, they bought on good with the locals, which additionally meant they did not have the obstacle of recruiting and using Nigerians to work for them. When asked what outcome did they need in their trade there was a definite sample in their response. The biggest outcome for us will be to make profit so we can expand the business we also want to help the local people by providing employment to them. By the (African) working with us hopefully they will work and acquire business skill, which they may use to start their own business. We also hope we can help develop and nurture friendly relationship with the Africans. They are friendly people.

1.6. Discussion We think that the success explanations of the Chinese firms could be defined by the traits of the nation. With a good-founded political environment and macroeconomic stability Nigeria would improve immensely. Within the Nigeria case it's evident that China was the most important nation benefiting from the connection via pleasurable their self-interests. Although Nigeria is projected to be one of the promising emerging economies in the near future, the country nonetheless face disorders similar to corruption, bad infrastructure and vigor provides. Nigeria can be particularly based on unique normal resources alternatively than on diverse industries, the place oil is their dominating source of earnings. Whereas MNEs maintain vicinity advantages in intellect (Dunning, 1980, 1988) when undertaking the overseas market. Taking the above dialogue of Chinese investments in Nigerian companies under consideration, we would like to emphasize and discuss the fact that the results would have differed depending on the kind of businesses studied. In our questionnaires the Chinese companies had been a blend SOEs (State Owned businesses) and POE (privately owned enterprise), hence the honor between the SOE and (POE) would have had an effect on the efficiency and final result of the study. Firstly, exclusive investments (POE) probably are specific towards sectors in agriculture, manufacturing, wholesale & retail and communications whereas public investments are traditionally directed toward usual assets, infrastructure and transport (Egbula & Zheng, 2011). Secondly, as there's a gray zone between business and politics equivalent to within the example of the “88 Queensway Syndicate”, it isn't constantly clear who the actual investor is and what their performance are. Thirdly, SOEs have been able to adjust to changing environment and policies. Due to the large capacity of their finance and influence. We can say that the Chinese business approach have been very favorable to SOE in the African business environment, compared to POEs

6 CONCLUSION 6.1. Introduction. The purpose of this study is like this to examine the nature of Chinese investments in Nigeria. Also looks for to examine Chinese investments by the eyes of the business owners Chinese and investors. Our aim is therefore to research Chinese OFDIs of a new perspective to analyse a number of companies selected that illustrate Chinese investments in Nigerian and Chinese approximation to business administration. The empirical findings were based on questionnaire answers from 30 different firms in different industries, of which 25 are private owned enterprises (POE), 5 Chinese MNEs were SOEs. Our ambition has been to hopefully contribute to new findings and results within this field, which could prove useful in future research. The Socio-economic impact of Chinese firms in Nigeria have been analyzed from a Nigerian perspective and the consequences in the Nigerian people and economy. 6.2. Answers to research Questions In order to fulfill our aim of this thesis we will now provide answers to our research question, which was formulated as followed; Research Question 1. How effective is Chinese management approach in Nigeria? To effectively answer this question we have to look at it from 3 different approaches as stated below: * Responsible and accountable Means:
The way in which responsibilities are assigned determines the behavior of the staff and the performance of the company. The Chinese managers assign responsibility as a team and response comes as a team too.

* Views of Time
The Chinese managers spend much times in the process of closing a deal, and they save face in such process.

* Individual and collective approach
Though the Chinese favor a collective approach to management, a lot of the new generation managers have taken the individual approach of the western world into cognizance. Nigerian Business approach is very similar to the Chinese. Though Nigerians strike a balance in between individual and collective approach, responsibility and perception of time is very similar. With both countries sharing similar approach and from the result of our questionnaire, we can conclude that the Chinese business approach is highly effective. Research Question 2 How has OFDI benefited Chinese firms in Nigeria? From the questionnaire response, its obvious Chinese Private Owned Enterprises (POE) have little or no benefit at all. This is because most OFDI have been on infrastructure and natural resources. The fact Chinese investment has been in these areas is supposed to benefit all type of firms both local and foreign firms, but this has not been so, cause the implementation process can be questioned. Billions of dollars as we have seen has been signed and most implemented, yet the Nigerian public is yet to see the benefits. The infrastructures are in a decay state, electricity is appalling, and Nigeria has a very poor business enabling environment. This can be blamed on the leaders of the country. This may not be the complete story for all the Chinese firms, State Owned Enterprises have been balling here in Nigeria. Most of the OFDI has been through these Chinese SOEs, in all sectors of the economy from construction to oil & gas. In conclusion I will say OFDI has not been having any direct benefit on most Chinese firms, but we cannot say it will not been indirectly beneficial on the long run.

Research Question 3 What are the major challenges Chinese businesses encounter in Nigeria? There are several issues and challenges that business enterprises face in the study area. Some are discussed below, albeit briefly. Staff training Personnel in each of the three business company in this area of study has some form of formal and personal inside formal training. Even so, there is any group of standard of the operation put in place. This means director of Chinese owners has a free rein to run his businesses the way see fit. These surroundings appears to suit the Chinese, especially in the view of the fact that backwards in the PRC would have had to adhere to stringent procedure ,rules and control for run the business. The challenge is for African government to address this bottleneck. If addressed it can help ensure that the product and services produced by both the Chinese as well as African business enterprise are safe that pollution is kept in check. Lack of Education and Training in the African Community On balance, African at the grassroots level have little or no formal education and have poor esteem. Consequently, business enterprises in the study area had to deal with problems of absenteeism mainly caused by substance abuse –alcohol and high labor turnover. Scarce materials Customarily there is demise of resources in the African communities’ .The Participant declared to ensure capital and different resources indispensable to hold potential of business and beneficial company was once one of the primary borders that go through local African company. Shortage Of trade limited severely capital operation.

Coming to term with operating business While handling one's the proper business is attractive, venturing to do not translate to a success of instant for a lot of Chinese entrepreneurs in Nigeria. Those who ventured to him quickly discovered that needed perseverance, patience and sacrifice .Especially, handling a business company does not offer immediate return in capital outlay, enough the reward had to be long term proposition, As an owner- the director put it:

We had to come to term with running the business, which meant to put in long hour for minimum return. It asks a lot of hard work and resilience. Doing is a lot a long term proposition and certainly no short term. On top of everything that, there is any guarantee that the business will be profitable. (Personal communication, 2011) African owner-managers reported that there business ventures have had to adjust and cope with increased competition from Chinese business enterprise and pressure to innovate regularly. They also have to make adjustment to their traditional relaxed, laidback disposition and their work ethics – the Chinese appear to work all time, which is why their business enterprises appear to be more competitive and successful. 6.3. Conclusion Will say that China's business personal businesses upper plough’s but radical new administration pioneering methods, when Toyota and another japan companies 50 years in the past with whole first-administration of kind, continuous development, and fair-inside-methods of time. Enough, the Chinese businesses train administration's present imperatives: responsiveness, improvisation, flexibility, and speed. These method gives them the edge in running effective business in developing countries. Beside South Africans and Indians who have proven to successfully run businesses Nigeria, Chinese remain the most successful in running businesses in Africa. Many western nations have tried and failed, that goes a long way to show how the Chinese management approach has been a big hit in Africa. Chinese business financing strategy is first-rate. As seen in the case study with CNOOC. We saw that Chinese money never leaves Chinese companies. Exim bank finances CNOOC projects, in turn proceeds from such investment is used to finance the building of infrastructures, which is handled by another Chinese company CCECC. The FDI of China will increase progress when it is going to compliment capital of house, stimulate the economic climate, creates works and promote progress. Even so, is argued of the view of civil society-point, those Chinese events in Nigeria undermine efforts to enhance transparency, accountability and well governance, human and right of work. This thesis has showed the Chinese quest for advantages in Nigeria, has resulted in increasing phases of investments, in particular inside the extractive sector. Apart of the sector of oil the Chinese besides has reversed in agriculture, telecommunication, development, and manufacture, trade (import, wholesale and retail buying and selling), which have grown drastically since 1999The Subjects were expressed concerning the implication of cheap, down pleasant Chinese imports in production of house. There were arguments when having to curb pouring, which has advertising-effects of verse in the local industries and market of work. Nonetheless, political of bad insurance and the weaknesses of businesses and regulatory institutions were blamed to fail to treat without difficulty with this subject. 6.4. Recommendation With this in mind, more Chinese companies need to come take advantage of the Nigerian business environment and resources. The Chinese academics should research more and publicize works on Chinese management approach. This can internationalize such an approach and make China one of the leading management countries. I would also recommend Chinese government involvement in supporting POEs, both directly and indirectly. Nigeria has to do properly use of his commitment with China and the Occidental international it-cations to diversify his progress. A radical assessment of the type of support that has been given and the way such support fits to the nation process of development of long term ought to be done. For example, China standpoint in the discipline could help in curbing corruption inside the country while the West commitment to the human rights would guide in combating abuse of power. There is besides the need for Nigeria to draw lessons of the commitment of alternative countries with China and to repeat triumphant political. It has to assessment his alternate politics of insurance with a purpose to identify these that can be useful to the nation progress of period of long time and those who have to be improved on. The federal government will have to place emphasis bigger in the capital progress human and this would have to be a main factor in all agreements of exchange. The subject of tongue has to also. 6.5. Suggestions for Future Research In this thesis we conducted a questionnaire of Chinese SOEs and POE investing in African firms, we were only able to analyze what we were given and their response. We would suggest to conduct case studies on POE in future research. Secondly this thesis seem to be the first of its kind, which means lots of errors in the parameter for measurement. I would recommend further research is done on Chinese management approach and its effectiveness in more developing countries, that way we can draw a more agreeable conclusion. Finally, in this thesis we did not come across implications on a managerial level, data which we initially had an ambition to find. Thus we would suggest for future researchers to conduct a study based on a manager’s perspective and perhaps implications on employees in the firm receiving the investment in the host country. Rather than focusing on the general pattern, one could possibly analyze FDI and MNE activity from an organizational perspective and thus use organizational paradigms in order to explain managerial behavior when exploiting scarce resources overseas

REFERENCE LIST 1. Agenor, P (2014). Does Globalization Hurt the Poor? International Economics and Economic Policy. 2. Ahmed, A and Suardi, S (2009). (S, 2009)Working Paper No 44, Centre for Strategic Economic Studies, Victoria University, and Melbourne. 3. Akindele, S.T., Gidado, T.O., and Olaopa, O.R. (2002). Globalization, Its Implications and Consequences for Africa. 4. An End to China’s Imbalances? (Ashvin Ahuja, 2012) International Monetary Fund, Asia and Pacific Department. Working paper 12/100. April 2012. 5. Alden, C. 2005. (Alden, 2005), China in Africa. Survival: Global Politics and Strategy 47(3): 147-164 6. Central Bank of Nigeria (2015) 7. CBN Statistical Bulletin China Daily, January 29, 2007, 8. China-Africa Trade Links China-Nigeria Relations, July 8, 2014, 9. China Embassy Corporate Affairs Commission database (2016), 10. CNOOC Ltd. 2013. CNOOC: About us. http://www.cnoocltd.com/encnoocltd/aboutus/118.shtml Accessed 6 May 2014 11. Das, D.K (2008). Winners of Globalization. CSGR working paper 249/08 12. Daily Trust July 10, 2015, List of registered Chinese Companies in Nigeria. 13. Daily Post Newspaper, April 15, 2016 14. DFID (2000) Making Poverty Work for the Poor, White Paper on International Development 15. Esogbue E. (2014), Articlesbase.com. 16. Fisher, S. and Todd, A.D. 1986, (A.D, 1986) Discourse and Institutional Authority. Medicine, Education and Law. 17. Gido Mapunda, (Mapunda, 2014) An African perspective of the globalization of Chinese business practice 18. Hammond, H.B (2004). Trade Liberalization and Development: Lessons for Africa. Africa Trade Policy Centre work in Progress No 6. Economic Commission for Africa. 19. International Journal of Business and management. V (P, 2014) olume 5, no 9, September 2010. 20. Kellehear. A. 1993, the Unobtrusive Researcher: A Guide to Methods. Australia: Allen and Union. 21. Lewkovitz et al. 2009. The 88 Queensway Group: A Case Study in Chinese Investors’ Operations in Angola and Beyond. U.S.-China Economic & Security Review Commission. July 2009. 22. Li Anshan (2007), China and Africa: Policy and Challenges, China Security Vol.3 No.3 23. Library of Congress of Country Studies (2015), Nigeria Country Profile 24. Merriam, S. 1988. Case Study Research in Education. San Francisco: Jossy Boss. 25. Michael Meidan (2006), China’s Africa Policy: Business now, Politics Later, Asian Perspective. 26. Ministry of Commerce database (2013) 27. Moser, C.A. and Kalton, G – 1973, Survey Method in Social Investigation. London: Heinemann. 28. National Bureau of Statistics, Trade Statistics (2016) 29. National Union of Civil Engineering, Construction, Furniture and Wood Workers (2013), Communiqué Nigeriafirst, Nigeria-China to boost strategic partnership, April 27, 2006 30. Nigeriafirst, Nigeria-China relations in Perspective 1999-2016, May 15, 2016 31. Nigeria Investment Promotion Commission database June 10, 2008. 32. Nigeria IFEZ (2016) Foreign Direct Investment, IFEZ Articles. 33. Nigeria Labour Act, 1974. 34. OECD. Stats Creditors Reporting System, 2015 35. Ogunkola O. E., Bankole, A. S, Adewuyi, A (2008), Nigeria- China Economic Relations. 36. People’s Daily, January 15, 1983 37. Southern Weekly, July 26, 2007 38. The Guardian Newspaper July 6, 2008 39. Trade and Investment Department (2016), Federal Ministry of Commerce and Industry, Abuja, 40. United Nations Conference on Trade and Development Statistics, 2015. 41. Utomi, P 2008. China and Nigeria. Center for Strategic and International Studies. 42. Vanguard Newspaper July 31, 2008 43. World Bank 2014, Structure of the Nigerian Economy 1974-2014 44. World Integrated Trade Solutions (WITS) 2015 45. Zhang, X., & Daly, K. 2011. The determinants of China’s outward foreign direct investment. Emerging Markets Review, 12(4): 389-398 December 2011

ACKNOWLEDGEMENTS

First of all, I would like to thank the almighty God for his grace and love during these period. I would also thank my supervisor Prof Wang Shumei for her guidance, and Miss Vivien Zhang for her invaluable assistance throughout the process when writing this thesis, she has been prompt and engaging by replying to my emails and giving me valuable input over the course of these past two months. Moreover, I would like to thank my wonderful and beautiful family, my wife and son for all forms of support. Finally, I would also like to thank faculty and staff of the business department of the Shenyang University.
Thank you all very much!
Benneth Ngozi Okobi
Shenyang University 3rd June, 2016

SAMPLE OF QUESTIONNAIRE
Hello Sir/ Ma
You are invited to participate in my MBA dissertation survey which look at “how Chinese Outward Foreign Direct Investment (OFDI) has benefited Chinese business in Nigeria and the performance of Chinese business approach
This survey is aimed at any person who owns or holds any management position within an organization .This survey will ask you a number of question about the company that you work for or you own .It will take approximately 5 to 10 minutes to complete the questionnaire.
Your participation in this study is completely voluntarily. There are no foreseeable risk associated with this project. However, if you feel uncomfortable answering any questions, you can withdraw from this survey at any point. The result of this survey will be used within my final MBA dissertation which will be made available to all participants who provide their email address.
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DETAILS 1) My Gender is: Male Female 2) My Age Range is: 25yrs or less 26yrs-35yrs old 36yrs-45yrs old 46yrs-55yrs old 56yrs- 65yrs old 65yrs plus

3) My email address for feedback on this survey is [optional]

4) How long have you worked for/ owned your current company 0 – 3 yrs. 3 – 5 yrs. 5 – 7 yrs. 7 – 10 yrs. 10 yrs. or more 5) What industry does your business fall into? Mining (Non-oil) Oil and Gas Construction Telecom Agriculture Manufacturing Property and Real Estate Import and Export Computer and Office Supplies Wholesale and Retail trade 6) What are your major challenge in carrying out business in Nigeria? Tick any of the following if it affects you and list out yours. Power/Electricity High Task rate Infrastructures Government Citizens Lack of enabling environment Poor Transport Network Poor Access to Fund Corruption

7) Who finance your business? Self Government Bank: Chinese Bank Nigerian Bank 8) Has the Foreign Direct Investment from China benefited your company? Yes No 9) Do you and your company pay Tax in Nigeria and China? Yes No 10) How is the Chinese Government supporting your business in Nigeria? Financially Moral Support Others 11) Has your business be profitable? Yes No 12) Would you advise other Chinese people to come invest in Nigeria? Yes No INTERVIEW QUESTION 1) What are the conditions for success in establishing Chinese business enterprise in Nigeria 2) What are the significance of Chinese business enterprise to Nigerian economic and social advancement 3) What are the Implication of Chinese business enterprises on the Nigerian economic development and quality of life?

LIST OF FIGURES
Figure 1. Structure of the Nigerian Economy on sectoral basis.
Figure 2. Nigeria’s Net Foreign Direct Investment inflow (US$ million).

Figure 3. Nigeria’s FDI inflows, 2012-2015 (US$ million).

Figure 4. Sectoral composition of FDI, 2000-2015 (%).
Figure 5. Pie Chart Analysis of industrial classification
Figure 6. Graph showing distribution of source of fund.

Figure 7. Positive and negative impact of Chinese business enterprise in African

LIST OF ABBREVIATIONS AND ACRONYMS
CNOOC China National Offshore Oil Corporation
FDI Foreign Direct Investment
JV Joint ventures
MNE Multinational Enterprise
OECD Organization for Economic Co-operation and Development
OFDI Outward Foreign Direct Investment
POE Privately Owned Enterprise
R&D Research and Development
SAPETRO South Atlantic Petroleum
SINOPEC China Petroleum and Chemical Corporation
SOE State owned Enterprise

DEFINITION

Developed economy: there is no widely accepted definition, but in general it refers to highly developed countries according to some set of criteria i.e. GDP per capita, level of industrialization, living standard, infrastructure development.
Developing economy: economies where the majority live on less money than in the developed countries. Often rural economies with poor health and education systems, scarce infrastructure, water and power supplies, low government quality and small domestic markets.
Emerging economy: an economy that is on the rise approaching advanced economies and have physical infrastructures such as banks, a stock exchange and a unified currency.
Latecomers and newcomers: economies facing accelerated internationalization, organizational innovation and strategic innovation, often leapfrogging stages in their internationalization process.
Sino-African: term that aims to describe the relationship between China and Africa.
FDI: is an investment made by a company or entity based in one country, into a company or entity based in another country…...

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