Activity 2.

STRUCTURE OF GLOBALIZATION

Explain in your own word.

1. Does global economic integration bring more harm or not? Articulate your stance.
Yes it will bring harm to the economic. Trade barriers for example, through
inefficiencies in prices, trade is shifted from a foreign country to an Individual Country. A
nation, for instance, must stop trading in a non-member countries with better manufacture
and trade in a higher-cost country with a manufacturer.

2. Differentiate market integration and economic integration.

Economic integration is the reduction or elimination of trade barriers and the
coordination of monetary and fiscal policies. It aims to reduce costs for both. While the
Market integration occurs when prices among different locations or related goods follow
similar patterns. A marketer plays the role of an integrator in the sense that he collects
feedback or vital inputs from other channel members and consumers.

3. What is the importance of international financial institutions to countries of the

world?
The international financial bodies have to play the role of changing market positions.

4. What is the significance of global corporation?

As multinational businesses, they open up the capital markets and provide companies
with a strong arbitration process through domestic financial markets. Global businesses should
offset natural currency exposures in their global activities, rather than handle money exposures
via the financial system.