Global Market Integration Flashcards
Its goal is:
To promote international
corporation
To resume international order
United Nations (UN)
Year of Establishment of International Financial
Institutions
ex: Monetary Financial Conference in Bretton
Woods, New Hampshire, US
Earlier in 1994
Because of this Establishment of the UN came to be after the downfall of the League of Nations
After WW2
When was the UN established?
October 24, 1945
What is the goal of the Monetary Financial Conference (MFC)?
to restore world economy &
end extreme poverty
2 Types of International Financial Institutions
- Intergovernmental
- Private
2 examples of Intergovernmental institutions?
- World Bank
- International Monetary Fund (IMF)
Example of Intergovernmental financial institution
Aim: to end extreme poverty and promote shared prosperity in a sustainable way
Facilitate granting of loans and financial assistance to developing
countries
ex: International Development Association, International Financial
Association, Multilateral Investment Guarantee Agency, and International
Center for Settlement and Investment Disputes
World Bank
1960 REGIONAL DEVELOPMENT BANKS:
- Asian Development Bank (ADB)
- African Development Bank (AfDB)
to spur social progress and economic growth to reduce poverty in their respective
member countries
1960 REGIONAL DEVELOPMENT BANKS:
- Asian Development Bank (ADB)
- African Development Bank (AfDB)
Example of Private financial institution
An American multinational investment banking and finance corporation
4th largest bank in the U.S.
Citigroup
Example of Private financial institution
Wealth management division of the bank of America
Merrill Lynch
Examples of Private financial institution that both provide investments around the world
ex: Foreign Direct Investments, stocks, or financial loans
Citigroup
Merrill Lynch
Both help to facilitate the functionality of a global economy
Lending money to their member states and global
corporations
– helps in project lending, establishes structural reforms, provides
technical assistance, provides international capital like foreign direct investments, etc.
Intergovernmental and Private Financial Institutions
It was the result of the establishment of a global economy that involved the HOMOGENIZATION of trade and commerce.
Global Market Integration
occurs when prices among different locations or related goods FOLLOW SIMILAR PATTERNS over a long period of time.
Groups of goods often move
PROPORTIONALLY to each other and when this relation is very clear among different markets it is said that the markets are INTEGRATED
Market integration
If Multinational Corporations and Transnational Corporations follow a certain
trade in pricing and production over a long
period of time, therefore there is ?
Global Market Integration
Example of Global Market Integration
Started in 1886
Based in Atlanta, Georgia, USA
They maintained the same price : long period of time
Delivering to the militaries in the US (until it reaches over 200 countries
in the world)
Tried to market beverages at a very low price (for business expansion in other countries)
made sure that the price is also marketable to foreign countries
Coca-Cola
Coca-Cola delivered to the militaries in the US, until it reaches over 130 countries in the world. (T or F)
F (Coca-Cola delivered to the militaries in the US, until it reaches over 200 countries in the world)
3 Common Attributes of Global Corporations by Neubauer (2014)
- An agent of desired economic development
- An economic prominence
- A very powerful entity that can create a crisis
