Lesson 4: Market Integration

Question 1

Are said to be integrated if they are connected by a process of arbitrage

Answer 1

Markets

Question 2

Is one inwhich various economic processes are so functionally related to every other process that the totality of separate operation forms a single unit of production with characteristics of its own

Answer 2

Integrated economy

Question 3

Is the phenomenon by which price interdependence takes place.

Answer 3

Market integration

Question 4

Refers to a situation in which prices of a commodity in spatially separated markets move together and price signals and information are transmitted smoothly across the markets.

Answer 4

Spatial market integration

Question 5

This involves acquiring a business operating earlier in the supply chain – e.g. a retailer buys a wholesaler, a brewer buys a hop farm.

Answer 5

Backward vertical integration.

Question 6

This involves the combination of firms that are involved in unrelated business activities.

Answer 6

Conglomerate integration

Question 7

This involves acquiring a business further up in the supply chain – e.g. a vehicle manufacturer buys a car parts distributor

Answer 7

Forward vertical integration

Question 8

Businesses in the same industry and which operate at the same stage of the production process are combined.

Answer 8

Horizontal integration

Question 9

Is generally referred to as a multinational corporation (MNC)

Answer 9

Global company

Question 10

Is a company that operates in two or more countries, leveraging the global environment to approach varying markets in attaining revenue generation

Answer 10

multinational corporation