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Market Integration

Market integration occurs when prices among different locations or related goods follow similar patterns over long periods of time. Free trade involves allowing international trade without restrictions like tariffs or quotas. Major free trade areas include NAFTA, AFTA, MERCOSUR, and COMESA. International financial institutions like the World Bank, IFC, and IMF help finance development projects and maintain stable currency exchange. Global corporations operate in multiple countries, leveraging their large capital and technologies to approach varying international markets.

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101 views14 pages

Market Integration

Market integration occurs when prices among different locations or related goods follow similar patterns over long periods of time. Free trade involves allowing international trade without restrictions like tariffs or quotas. Major free trade areas include NAFTA, AFTA, MERCOSUR, and COMESA. International financial institutions like the World Bank, IFC, and IMF help finance development projects and maintain stable currency exchange. Global corporations operate in multiple countries, leveraging their large capital and technologies to approach varying international markets.

Uploaded by

Aizerner
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Market Integration

Contemporary World
Definition
This occurs when prices among different
locations or related goods follow similar
patterns over a long period of time.
Free Trade
Free Trade is wherein the international
trade is left to its natural course without
tariffs and non-tariff trade barriers such
as quotas, embargoes, sanctions or other
restrictions.
Tariffs
taxes or duties to be paid on a particular class of
imports or exports
Embargo
a government-instituted prevention of exports to a
certain country
Economic sanctions
commercial and financial penalties applied by one or
more countries against a targeted country, group, or
individual
Free Trade Areas
A group of countries within which tariffs
and non-tariff trade barriers between the
members are generally abolished but with
no common trade policy toward non-
members.
WORLD’S MAJOR FREE TRADE AREAS
1. North American Free Trade Agreement (NAFTA)
2. Association of Southeast Asian Nations Free
Trade Area (AFTA)
3. Southern Common Market (MERCOSUR)
4. Common Market of Eastern and Southern Africa
(COMESA)
Here are not Free Trade Areas

1. European Union
2. Trans-Pacific Partnership
3. Transatlantic Trade and Investment Partnership
– not yet ratified
Market Integration
AND IT’S HISTORY
International Financial
Institutions
- International non-profit agencies are one of the
major sources of financing like regional development
banks or banks globally.

- To finance productive development projects or to promote


economic development
WORLD BANK
It is a multinational financial institution established at the end
of World War II (1944) to help provide long-term capital for the
reconstruction and development of member countries.

It provides much of the planning and financing for economic


development projects involving billions of dollars
International Finance Corporation
- The IFC was established in 1956. There are 133 countries
that are members of the IFC and it is legally and financially
separate from the IBRD.

- The key feature of the IFC is that its loans are made to
private enterprises and its investments are made in
conjunction with private business.

- In addition to funds contributed by IFC, funds are also


contributed to the same projects by local and foreign investors
INTERNATIONAL MONETARY
FUND
IMF is a cooperative institution that 182 countries have
voluntarily joined because they see the advantage of consulting
with one another on this forum to maintain a stable system of
buying and selling their currencies
Global Corporation
A global corporation is generally referred to as a multinational
corporation (MNC). An MNC is a company that operates in two
or more countries, leveraging the global environment to
approach varying markets in attaining revenue generation.
Attributes of a Global
Corporation
1. Huge capital resources
2. Foreign Collaborations
3. Advanced Technologies
4. Product Innovations
5. Expansion of Market Territory
6. Centralized Control

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