Very critical to our understanding of globalisation is the dire need to use it as a synonym for liberalisation and greater openness. The implication of this is that both domestic and foreign liberalization are said to imply globalisation, since the former brings domestic markets more in conformity with forces operating in markets abroad, and, the removal of administrative barriers to international movement of goods, services, labour and capital increases economic interaction among nations. It is within this purview that we can argue that globalisation is mainly a phenomenon of capital mobility. Its two prongs are: (i) Foreign direct investment and (ii) international portfolio flows. Thus, a global economy is one which is dominated by transnational firms and financial institutions, operating independently of national boundaries and domestic economic considerations. The implication of deterritorialisation for African countries is that world goods, factors of production and financial assets would be almost perfect substitutes everywhere in the world. Hence, it could be difficult to identify a national economy and consider nation states as distinct economic identities with autonomous decision making power in the pursuit of national objectives. This, indeed, explains why the IMF issued a query to Nigeria in respect of over 400 billion naira meant for capital expenditure in the 2001 budget, and, why the IMF and World Bank (two bodies that are driving forces of globalisation) contributed enormously in the drafting of the Nigeria's 2001 budget.
Another important feature of globalisation is that, it enhances the volume of international trade and investment, which is a reflection of the global pattern of specialisation in production (i.e. the international division of labour). Though, there is an increase in the volume of goods among nations, international trade continues to be largely concentrated in developed countries (i.