Answer both questions. Each question is worth 50 marks. Total assignment marks: 100
Describe the business environment in the Lagos, Nigeria. You should explain
what the current economic environment is and how this environment encourages or
inhibits business activity. Don’t simply say the environment is good or bad. Provide any
information about the social, technological, economic, environmental, political, legal, and
ethical environmental that supports or inhibits the setting up and operation of businesses.
You must justify your view and give examples to support your answer.
In answering this question, you should also examine the level and nature of competition in
at least five different types of product markets. You should explain the type of market
structure that exists in each of these product markets. You should clearly explain whether
firms mainly engage in price or non-price competition and whether there is much or little
competition and why? Based on your answers above, discuss the effects that the above
business environment has on consumers and society in general.
(a) For Nigeria, present data for economic growth, inflation, unemployment and the
current account balance for the years 2007-2013. Use graphs to illustrate your answers.
(b) Using the data that you have presented in part (a), discuss whether you think Nigeria’s economy has performed well during this period. (20 marks)
(c) Having the data in mind and using economic theories, analyze the various policies (e.g.
fiscal, monetary, supply-side) that you think the government and/or central bank should
use to improve the macroeconomic performance of Nigeria’s economy. In answering
this part, explicitly state (name) the type of economic policy and then theoretically explain
how each policy can help improve the economy. You must outline the advantages and
disadvantages of the policy or policies that you recommend.
· You are required to type up and submit a Word document file which will include
your answers to the above questions.
In preparing your answers to the assignment, you are required to follow the specific
· You are to work on this assignment individually without the help of others.
· Your answer should be grounded in relevant economic theories.
· The word limit for this assignment is between a minimum of 2000 and a maximum
of 4000 words.
· Use Times New Roman or Arial 12 pt with 1.5 spacing between lines.
· Pages must be numbered.
· Headings and sub-headings should be clear and visible.
· The text should flow smoothly, with each section leading naturally and logically to
the next one.
· You are required to submit your assignment by November 25, 2014.
· Late submissions will not be accepted.
· Reference all sources appropriately using the Harvard Referencing system.
Note that although you may include direct quotes from various sources of
information, your answer should not merely be other people’s work. That is,
even if you identify the sources of information that you use, you should not
copy too much information directly from other sources. Try to paraphrase as
much as possible and include your own thoughts in your answers. Even if
you paraphrase you still need to identify the source of information. When you
copy directly be sure to identify the pages. Finally, when you include your
own thoughts be sure to justify them with supporting references.