Lesson 3 - Market Integration Flashcards
What does market integration refer to?
Market Integration refers to the process of economic transformation within a region, bloc, or group of countries, aimed at pegging one price for the same product, thereby directly or indirectly merging previously separate markets or economic communities into one single market or economic community.
Which sectors shape and impact the global economy’s activity under globalization?
- Governments
- Global institutions
Why is it impossible to achieve global market integration without multinational corporations (MNCs)?
Global market integration is impossible to achieve without the emergence of multinational corporations (MNCs). MNCs considerable ventures into research and development and investments in new goods and services have aided the increase of trade among nations, and in effect, furthers the expansion of globalization.
How can the origins of today’s multinational companies be traced back?
The origins of today’s multinational companies can be traced back to the colonial period, when colonizers used colonies as cheap sources of raw materials and, in many cases, slave labor; or as markets for surplus goods.
Can you give some examples of global corporations that are included among Fortune’s 2017 Global 500 list of firms?
Examples of global corporations include:
- Toyota Motor Corporation
- Royal Dutch Shell
- Glencore
- Boeing Company
- AT&T
- HSBC
- Citigroup
- Apple
- Samsung Electronics
What do opponents argue about multinational companies gaining more influence of the world’s wealth and capital?
With multinational companies gaining more influence of the world’s wealth and capital, opponents rightly argue that these institutions should be regulated rather than deregulated.
What does the World Trade Organization facilitate?
The WTO facilitates the free and smooth flow of exchange of goods and services across international member-states.
What roles does the WTO identify with in relation to global trade?
The WTO identifies with the following roles in relation to global trade:
- “It is an organization for trade openings.”
- “It is a forum for governments to negotiate trade agreements.”
- “It is a place for them to settle trade disputes and;
- “It operates a system of trade rules”
What role do international financial institutions play in the creation of a global economy?
International financial institutions further spreads and smoothens the liquidity of economic globalization.
What are the two objectives or missions of the World Bank Group (WBG)?
The World Bank Group has for its mission two objectives namely:
- ” To end extreme poverty” (by reducing the share of the global population that lives in extreme poverty to 3% by 2030); and
- “To promote shared prosperity” (by increasing the incomes of the poorest 40% of people in every country)
What entities compose the WBG?
The WBG is composed of five entities that vary in terms of core goals and purpose. These entities are the following:
- International Bank for Reconstruction and Development (IBRD),
- the International Development Association (IDA),
- the International Finance Corporation (IFC), the
- Multilateral Investment Guarantee Agency (MIGA), and the
- International Center for Settlement of Investment Disputes (ICSID)
What is the primary mission of the International Monetary Fund (IMF)?
Its primary mission is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries and their citizens to transact with each other.
What is the IMF’s last original aim?
The IMF’s last original aim is to serve as a de facto “lender of last resort”.
What do many scholars argue about international economic institutions?
Many scholars argue that hese institutions are perpetrators of debt trap among developing and least developed countries. The debt trap refers to the developing countries’ inability to free themselves from debts acquired from First-World countries for the past decades.
