Lecture 3: Market Integration

Question 1

____ is a place where two parties can gather to facilitate the exchange of goods and services.

Answer 1

Market

Question 2

____ refers to the action or process of successful joining or mixing with a different group of people.

Answer 2

Integration

Question 3

____ is the phenomenon by which price interdependence takes place. It refers to the fusing of markets into one.

Answer 3

Market Integration

Question 4

T or F. A price change in one market affects the prices in other markets.

Answer 4

True

Question 5

Give two [2] major events in the history of Global Market Integration.

Answer 5

1. Agricultural Revolution
2. Industrial Revolution

Question 6

What is the Agricultural Revolution?

Answer 6

The agricultural revolution, also known as the Neolithic Revolution, marked the transition from hunting and gathering societies to agricultural societies, where humans began to cultivate crops and domesticate animals for food, fiber, and other resources. It allowed for the growth of larger and more complex societies. With the development of agriculture, people were able to settle in one place and build permanent settlements, which led to the development of cities and civilizations.

The agricultural revolution also had significant impacts on human health and nutrition. With the ability to cultivate crops and raise livestock, people were able to produce a more reliable and diverse food supply, which led to improved health and nutrition. However, the shift to agriculture also brought new challenges, such as the spread of disease and the need for intensive labor to tend to crops and livestock.

Question 7

What is the Industrial Revolution?

Answer 7

The Industrial Revolution was characterized by several technological innovations, including the invention of the steam engine, the cotton gin, and the power loom, which revolutionized the textile industry. It led to the growth of urbanization and the development of modern cities, as people flocked to industrial centers in search of work. It also led to significant changes in transportation, communication, and other areas of daily life.

However, the Industrial Revolution also had negative impacts, such as widespread pollution and environmental degradation, and the exploitation of workers, particularly children, who were often employed in dangerous and unhealthy conditions.

Question 8

The ____ were founded by groups of countries to promote public and private investment to foster economic and social development in developing and transitioning countries. They are owned and managed by national governments acting as borrowers, lenders, or donors.

Answer 8

International Financial Institutions [IFI]

Question 9

T or F. International Financial Institutions [IFI] provided loans, credits, and grants to finance projects run by governments or the private sector.

Answer 9

True

Question 10

T or F. International Financial Institutions [IFI] focus on areas that are in fragile states and those most affected by poverty.

Answer 10

True

Question 11

Give two [2] examples of International Financial Institutions [IFI].

Answer 11

1. International Monetary Fund [IMF]
2. Multilateral Development Bank [MDBs]

Question 12

Multilateral Development Bank [MDBs] include: [5]

Answer 12

1. World Bank
2. African Development Bank
3. Asian Development Bank
4. Inter-American Development Bank
5. European Bank for Reconstruction and Development

Question 13

____ have invested in and are present in many countries. They typically market their products and services to each local market.

Answer 13

Global Corporations or Global Companies

Question 14

IFIs are owned and managed by national governments acting as _______, __________, _________

Answer 14

borrowers, lenders, or donors

Question 15

Challenges of global corporations

Answer 15

1. Public Relations
2. Organizational Structure
3. Leadership
4. Ethics