MARKET INTEGRATION

Question 1

MARKET INTEGRATION

Answer 1

defined as by Koester, (2000), is a state of affairs or a
process of involving attempts to combine separate national
economies into larger economies. It is a means of stimulating
trade and improving the division of labor between participating
countries.

Question 2

MARKET INTEGRATION WAS STATED BY

Answer 2

KOSTER 2000

Question 3

3 BASIC KINDS OF MARKET INTEGRATION

Answer 3

HORIZONTAL I
VERTICAL I
CONGLOMERATION

Question 4

HORIZONTAL INTEGRATION

Answer 4

occurs when an agency or firm gains control over…

Question 4

Example: wholesaler assuming the function of retailing

Answer 4

FORWARD INTEGRATION

Question 4

CONGLOMERATION

Answer 4

comibination of agencies or activities not directly related to each other…

Question 5

VERTICAL I

Answer 5

occurs when a firm performs more than one activity…

Question 6

5 FORMS OF MARKET INTEGRATION (KOESTER, 2000) PFCCE

Answer 6

1. PREFERENTIAL AGREEMENT
2. FREE TRADE AGREEMENT
3. CUSTOM UNION
4. COMMON MARKET
5. ECONOMIC UNION

Question 6

2 types of VERTICAL I

Answer 6

1. FORWARD I
2. BACKWARD I

Question 7

If a firm assumes another function of marketing which is closer to
the consumption function,

Answer 7

FORWARD INTEGRATION

Question 8

Represents a higher stage of economic
integration. In this form, countries agree to abolish tariff and
non-tariff to trade in goods flowing between them. They agree a
common external tariff.

Answer 8

CUSTOM UNION

Question 8

is an international intergovernmental organization for providing
long-term loans on easy term for specific developmental projects.

Answer 8

WORLD BANK (WB)

Question 8

involves ownership or a combination of sources of supply.

Answer 8

BACKWARD INTEGRATION

Question 8

Example: when a processing firm assumes the function of
assembling/purchasing the produce from the villages.

Answer 8

BACKWARD INTEGRATION

Question 9

From an initial strength of 31 members, it now commands a 125
strong membership.

Answer 9

INTERNATIONAL MONETARY FUND (IMF)

Question 9

Free movement of labor and capital within the member-countries. Hence, the intention of a common market is to integrate both product and factor markets member-countries.

Answer 9

COMMON MARKET

Question 9

It is the highest form of economic
integration. In addition to the conditions of a common market,
member-countries also agree to integrate monetary fiscal, and
other policies.

Answer 9

ECONOMIC UNION

Question 9

reduces trade barriers among member
countries to zero but each member still has autonomy in deciding on
the external rate of tariff for its trade with non-member countries.

Answer 9

FREE TRADE AGREEMENTS

Question 9

GLOBAL CORPORATIONS (4) MIGT

Answer 9

1. MULTINATIONAL CORPORATIONS (MNC)
2. INTERNATIONAL COMPANIES
3. GLOBAL COMPANIES
4. TRANSNATIONAL COMPANIES (TNC)

Question 9

a trading block that
gives preferential access to certain products from the participating
countries.

Answer 9

PREFERENTIAL AGREEMENT

Question 10

only global international organization dealing
with the rules of trade between nations. The goal is to ensure
that the trade flows as smoothly, predictably, and freely as
possible.

Answer 10

WORLD TRADE ORGANIZATION (WTO)

Question 10

have investment in
other countries but do not have coordinated products offering
in each country.

Answer 10

MULTINATIONAL CORPORATIONS

Question 10

The functions of IMF include: WPAPP

Answer 10

1. Works as short-term credit institution;
2. Provides for the orderly adjustment of exchange rates;
3. Acts as a reserve member-countries to borrow from;
4. Provide foreign exchange loans against current transaction, and;
5. Provides international financial consultancy service.

Question 10

Have invested in and are present in many countries

Answer 10

GLOBAL COMPANIES

Question 10

means the systematic
implementation of the principle underlying the separation of
economy and state—freedom.

Answer 10

LAISSEZ-FAIRE CAPITALISM

Question 10

The functions of the World Bank may be grouped into five major categories: PldsiS

Answer 10

1. Provides loan services to member governments;
2. Provides development loans on soft term to poor member nations;
3. Provides support to private or joint sector projects;
4. Provides insurance guarantees to foreign investors;
5. Setting-investment-related disputes among member nations through conciliation and arbitration.

Question 10

4 ROLES OF MNCs (APPI)

Answer 10

1. MNCs act as modernizers of the world economy;
2. Promote efficiency and growth of the world economy;
3. Promote regional agreement and alliance; and
4. Increase of money circulation in the economy

Question 10

more complex organization,
which have invested in foreign operations, have a central corporate
facility but give decision-making, research and development and
marketing power to each individual foreign market.

Answer 10

TRANSNATIONAL COMPANIES (TNC)

Question 10

a period of change that might
prove as significant to the lives of people. Computer technology
is at the root of this change, and continuing advancements in
that technology seem to ensure that this revolution would
touch the lives of people.

Answer 10

INFORMATION REVOLUTION

Question 10

are importers and exporters, typically
without investment outside of their home country.

Answer 10

INTERNATIONAL COMPANIES

Question 10

the socio-economic system where all property
is privately owned, where freely formed contracts form the basis
of economic interaction, and where the government does not
engage in regulation, supervision, or direction of market
processes.

Answer 10

CAPITALISM

Question 10

the name given to a number of
cultural transformations that initially allowed humans to change
from a hunting and gathering subsistence to one of agriculture
and animal domestications.

Answer 10

AGRICULTURE REVOLUTION

Question 11

The transition to new manufacturing processes in the period
from about 1760 to sometime between 1820 and 1840. This
transition included going from hand production methods to
machines, new chemical manufacturing and iron production
processes, improved efficiency of water power, the increasing
use of steam power, the development of machine tools, and the
rise of the factory system.

Answer 11

INDUSTRIAL REVOLUTION

Question 11

2 LABOR MARKET

Answer 11

PRIMARY LM
SECONDARY LM

Question 11

a system in which person in the community
has an equal share of the various elements of production,
distribution, and exchange of resources.

Answer 11

SOCIALISM

Question 11

includes jobs that provide many
benefits to workers, like high incomes, job security, health
insurance, and retirement packages.

Answer 11

PRIMARY LABOR MARKET

Question 12

jobs provide fewer benefits and
include lower-skilled jobs and lower service sector.

Answer 12

SECONDARY LABOR MARKET