Global Economy and Market Integration

Question 1

True or False

Developing countries with pollution will suffer the most from climate change

Answer 1

True

Question 2

True or False

Part of military globalization is the nuclear age and weapons of mass destruction

Answer 2

True

Question 3

True or False

Globalization prohibited international terrorists from achieving their crime/terrorism goals

Answer 3

False

Question 4

True or False

People move all the time, mixing and integrating different societies and their cultures

Answer 4

True

Question 5

True or False

Terrorists and criminals used the instruments of globalization to achieve their objectives

Answer 5

True

Question 6

refers to how easily two or more markets can trade with each other

Answer 6

Market integration

Question 7

helps the Integration of markets because it reduces barriers to trade and increases fluidity between
markets

Answer 7

Foreign trade

Question 8

Reasons for market integration

Answer 8

-To remove transaction costs
-Foster competition
-Provide better signals for optimal generation and consumption decisions
- Improve the security of supply

Question 9

Market integration occurs when

Answer 9

prices among different locations or related goods follow similar
patterns over a long period

Question 10

plays the role of an integrator in the sense that he collects feedback or vital inputs from other
channel members

Answer 10

marketer

Question 11

Types of market integration

Answer 11

-Horizontal Integration
-Vertical Integration: Forward, Backward and Balanced Vertical Integration
-Conglomeration

Question 12

occurs when a firm or agency gains control of other firms or agencies
performing similar marketing functions at the same level in the marketing sequence

Answer 12

Horizontal Integration

Question 13

Effects of Horizontal Integration

Answer 13

-Buying out a competitor in a time-bound way to reduce competition.
-Gaining a larger share of the market and higher profits.
-Attaining economies of scale.
-Specializing in the trade.

Question 14

Advantages of Horizontal Integration

Answer 14

-Lower costs
-Higher efficiency
-Increased differentiation
-Increased market power
-Reduced competition
-Access to new markets
-Economies of scale
-Economics of scope
-International trade

Question 15

occurs when a firm performs more than one activity in the sequence of
the marketing process

Answer 15

Vertical Integration

Question 16

a firm assumes another function of marketing that is closer to the
consumption function

Answer 16

Forward Integration

Question 17

This involves ownership or a combination of sources of supply

Answer 17

Backward Integration

Question 18

combines the backward and the
forward vertical Integration

Answer 18

Balanced vertical Integration