Significance of Market Integration

Recap:

⚫ Global Economy and International Organizations

⚫ Concept of Tariff, Sanction, and Embargo

➢ Global economy- refers to the international exchange of goods and services that is
expressed in monetary units of money.
➢ Economic interaction between and among community of nations. The interactions involve
the exchange of the things we own, we sell, and we buy. It also includes investments of
international corporations, labor migrations, and the flow of financial capital.
➢ Describes the world wide economy or the economy of every country in this globe.

Market Integration
➢ It’s all about combining or bringing together national or different countries into one
economy.
➢ One good example of this is the European Union (EU) and the Association of Southeast Asian
Nations.
Reasons for joining international organizations:
✓ To improve the GDP or to improve the nation’s economy.
✓ To have a better trade or agreement or relations with different countries
✓ To have FREE TRADE

Free Trade- is an agreement between countries of which they can trade or import or export their
products without restrictions (No tariffs or non-tariff trade barriers)

Tariff- a tax or duty to be paid on a particular class of imports and exports.

Embargo-a government instituted prevention of exports to a certain country. It’s an import BAN
to specific place.
Economic sanction- commercial and financial penalties applied by one or more countries.

International corporations/partnerships around the world which apply free trade or have free
trade agreement. (Please research the following acronyms for your reference)
◆ USMCA
◆ AFTA
◆ MERCOSUR
◆ COMESA
◆ EU
◆ TPP

Why Great Britain (UK) exited EU?

1. Immigration 2. Sovereignty 3. Terrorism