SOCSCI 032 Market Integration Flashcards
Is a situation in which separate markets for the same product
become one single market.
Market Integration
The 3 innovations changed global corporations
- Digitalization
- Global communications (CP)
- Structural transformation of global commerce
From producer driven to consumer driven
When does Market Integration occur?
When different locations or related goods follow similar patterns over a long period of time
What does FDI mean?
What does IFI mean?
Foreign Direct Investments
International Financial Institution
3 structural periods Post-war
- Investment based (1950-1970)
- Trade-based globalization (1970-95)
- Digital globalization (1995 onwards)
Horizontal Integration is also known as?
Lateral Integration
What are the 2 types of Vertical Integration?
Forward Vertical Integration
Backward Vertical Integration
This is an organization that uses economic resources or inputs to provide goods or services to customers in exchange for money
or other goods and services.
Business Entity
This is the combination of two or more business entities
engaged in entirely different businesses that fall under one corporate group, usually involving a parent company and
many subsidiaries.
Conglomerate
These are businesses that may be classified in more than one type of business.
Hybrid Businesses
This type of business buys products at wholesale price and sells the same at retail price. They are known as “buy and sell” businesses.
Merchandising Business
This type of business provides intangible products
Service Business
This type of business buys products with the intention of using them as materials in making a new product.
Manufacturing Business
This is a business owned by only one person.
Sole Proprietorship
These are hybrid forms of business that have characteristics
of both a corporation and a partnership.
Limited liability companies (LLCs)
This is a business owned by two or more persons who contribute resources into the entity.
Partnership
This is a business organization that has a separate legal personality from its owners.
Corporation
-Ownership represented by stock
-Owners are stockholders
Why is an LLC not a corporation?
An LLC is not incorporated; hence, it is not considered a
corporation.
This is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members.
Cooperative
