INTEGRATION MARKET Flashcards
A phenomenon in which markets of goods and services that are related to one another experience similar patters of increase or decrease in terms of prices of those products
refers to the pattern of creating unified marketplace where goods, and capital can flow between regions or countries
Market intergration
It is chartered by more than one country and
therefore are subjects to international law. Its
owners or shareholders are generally national
governments, although other international
institutions and other organizations occasionally
figure as shareholders.
The most prominent IFIs are creations of multiple
nations, although some bilateral financial
institutions (created by two countries) exists and
technically IFI.
The best known IFI were established after World
War II to assist in the reconstruction of Europe
and provide mechanisms for international
cooperation in managing the global financial
system.
Role of International Financial Institutions in the Creation of Global Economy
- International Monetary Fund
Multi Cultural Development
bank (MDBs):
2.
World Bank Group
-African Development Bank
-Asian Development Bank
-Inter-American Development Bank
-European Bank for Reconstruction and Development
International Financial Institutions
(IFIs)
It is known as global economy. It is coined from the base
term
“global”
which means all around the world. It is one
that operates in more than one country. This is generally
referred to as a multinational corporations (MNC). IT is a
company that operates in two or more countries,
leveraging the global environmennt to approach varying
markets in attaining revenue generation. These
international operations are pursued as a result of
strategic potential provided by technological
developments making new markets a more convenient
and profitable pursuit both in sourcing production and
pursuing growth.
Global Corporations
Operating in more counties
means access to more
customers, which means more
revenue and profit. If you sell
goods, higher volumes can
reduce costs.
Operating in global markets is
also a good way to reduce risks
and to leverage new
opportunities.
ATTRIBUTES
International operations are therefore a
direct result of either achieving higher
levels of revenue or a lower cost structure
within the operations or value-chain. MNC
operations often attain economies of
scale, through mass producing in external
markets at substantially cheaper costs, or
economies of scope, through horizontal
expansion into new graphic markets. If
successful, these both result in positive
effects on the income statement (either
larger revenues or stronger margins), but
contain the innate risk in developing these
new opportunities.
SIGNIFICANCE