MARKET INTEGRATION Flashcards
The process of unifying
separate markets into a single global marketplace.
Market Integration
Increased interconnection between national economies.
Market Integration
Driven by trade, investment, and the role of international financial institutions.
Market Integration
Stabilizes international exchange rates and facilitates global monetary cooperation.
International Monetary Fund (IMF)
Provides financial and technical
assistance for development projects to reduce poverty.
World Bank
Facilitates international trade by regulating and promoting free trade agreements.
World Trade Organization (WTO)
- International Monetary Fund (IMF)
- World Bank
- World Trade Organization (WTO)
Key Institution
beginnings of market integration during the colonial era and industrial revolution.
Pre-20th Century
World War I and II disrupted markets, but post-WWII efforts created new global structures
(e.g., Bretton Woods).
Early 20th Century
Established IMF, World Bank, and set the foundation for global trade.
1944 Bretton Woods Conference
leading to the reduction of trade barriers and tariffs
Formation of GATT in 1947 (later WTO in 1995)
The ____ of multinational corporations and
increased cross-border investments.
rise
- 1944 Bretton Woods Conference
- Formation of GATT in 1947 (later WTO in 1995)
- The rise of multinational corporations and increased cross-border investments.
Post-WWII Integration
Expansion of free trade agreements (e.g., NAFTA in 1994, the European Union’s
single market).
Late 20th Century
Globalization’s acceleration with technological advancements and the digital
revolution.
Late 20th Century
Operations in multiple countries with a centralized
headquarters (e.g., Apple, Toyota).
Global Reach
Complex global supply chains that span several countries for manufacturing, sourcing, and
distribution.
Supply Chains
Significant influence over global markets and the ability to shape industry trends.
Market Dominance
Continuous investment in
research and development to maintain competitiveness.
Innovation
Corporate social responsibility (CSR) efforts, including sustainability and ethical practices.
Responsibility
Transportation: Air and sea logistics improvements.
Technological Advancements
Communication: Internet, digital platforms, and global networks.
Technological Advancements
Free Trade Agreements (e.g., NAFTA, TPP, EU trade policies).
Trade Liberalization
Reduction of tariffs and barriers to international trade
Trade Liberalization
