MARKET INTEGRATION

MARKET INTEGRATION

A process that refers to corporate expansion by consolidating additional

marketing functions and activities within a single management framework

REASONS FOR MARKET INTEGRATION

To remove Transaction cost

Foster competition
Provide better Signals for optimal generation and consumption decisions
Improve Security of supply
HISTORY OF GLOBAL MARKET INTEGRATION

Before the rise of todays modern economy people only produce for their
Family. Nowadays, economy demands the different sectors to work together
in order to produce, distribute, and exchange product and services.
DEVELOPMENT OF MARKET INTEGRATION

FIRST PHASE- AGRICULTURAL REVOLUTION

SECOND PHASE - INDUSTRIAL REVOLUTION
THIRD PHASE- INFORMATION REVOLUTION
 DEVELOPMENT OF MARKET INTEGRATION
FIRST PHASE- AGRICULTURAL REVOLUTION
The time when human beings first domesticated plants and animals and no longer relied
entirely on hunting and gathering.

SECOND PHASE - INDUSTRIAL REVOLUTION

A series of improvements in industrial technology transformed the process of
manufacturing goods

THIRD PHASE- INFORMATION REVOLUTION

Period where in that reduce the use of human labor and shifted it from manufacturing
economy to one that is based on Service work and production of ideas rather than
Goods.
TWO ECONOMICS MODELS OF INDUSTRIAL REVOLUTION

CAPITALISM
SOCIALISM CAPITALISM- A system in which all natural resources
and means of production are privately owned.

SOCIALISM- The mean of Production are under

collective Ownership. Own by the Public to also
support the Public.
INTERNATIONAL FINANCIAL INSTITUTIONS

World Economies have been brought closer by Globalization. It is reflected with

the phrase "When the American economy sneezes, the rest of the World catches a
cold"
The Strength of a more powerful economy brings greater effects on other
country. In the same manner, crises in weaker economies has less effect on other
country
THE BRETTON WOOD SYSTEM

When was Bretton wood System

inaugurated

In 1944 during the United Nations Monetary and Financial

Conference to prevent the catastrophes of the early
decades of the century from reoccurring and affecting the
international ties.
5 KEY ELEMENTS OF BRETTON WOOD SYSTEM

First Element- The expression of currency in terms of gold or Gold value to establish a par
value.
Second Element- The official monetary authority in each country(a central bank or its
equivalent) would agree to exchange its own currency for those of other countries at the
established exchange rates, plus or minus a one-percent margin
.Third Elements-The establishment of an overseer for these exchange rates; thus monetary
fund(IMF) was founded.
Fourth Element- Elimination restrictions on the currencies of member states in the
international trades.
Fifth Elements- The US dollar become the Global Currency.
GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)

A forum for the meeting of representatives from 23 members of Countries. It

focused on trade Goods through Multinational trades agreements conducted
in many "rounds" of negotiation.

WORLD TRADE ORGANIZATION (WTO)

WTO is an independent multilateral organization that became responsible for trade

in services, non tariff-related barrier to trade and other broader areas of trade
Liberalization.
WTO is based was that of neoliberalism, which means that by reducing and
eliminating barriers, all nation will benefits.
 INTERNATIONAL MONETARY FUND (IMF)

International Monetary Fund and World Bank were founded after the World
War II. These Institutions aimed to help Economic stability of the World.

IMF main Goal was to help Countries which where in trouble, and who could
not obtain money by any means. IMF served as a lender or a last resort
ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT(OECD)

The most encompassing club of the richest country in world

ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES(OPEC)

Was formed because members countries wanted to increase the price of oils, which in the
past had relatively low prices and field in keeping up with inflations

Saudi Arabia, Iraq, Kuwait, Iran, Venezuela, United Arab Emirates, Algeria, Libya, Qatar,
Nigeria, and Indonesia
NORTH AMERICAN FREE TRADE AGREEMENT(NAFTA)

It is pack between United States, Mexico, and Canada, it was created on June 1, 1994.
NAFTA helps in developing and expanding World Trade by broadening international
corporation.
Aims to increase cooperation for improving working conditions in North America by
reducing barriers to trade as it expands the market of three countries.

POSITIVE EFFECTS- it lowered prices by removing tariffs, open up new opportunities for
small and medium sized businesses to establish a name for itself, it created 5 million U.S
jobs.
NEGATIVE EFFECTS- include excessive pollutions, loss of manufacturing jobs,
exploitations of workers in Mexico, and moving Mexican farmers out of business
GLOBAL CORPORATION

The increase of International trade has both created and supported by International regulatory
Groups, like WTO, and transnational trade agreements,. like NAFTA.
The trade regulatory groups and agreements regulate the flow of goods and services between
countries. They reduce tariffs, which are taxes on import and makes custom procedure easier.

Companies that extend beyond the borders are called multinational or transnational
corporation(MNSs or TNCs)
They are also referred to Global Corporations
They intentionally surpass national boarders and take advantage of opportunities in different
countries to manufacture, distribute, market and sell their products
GLOBAL CORPORATION

Transnational Corporation have a significant role in the Global economy.

Influence the Economy and Politics by donating money to specific political campaign
or lobbylist.
Influence the Global trade laws of international regulatory groups.

Negative effects of Globalization from transnational corporations

Trade does promote the self-interested agendas of corporations and give them autonomy.
The Global corporations also influenced politics and allow workers to be exploited.
Positive Effects of transnational Corporation
These include better allocation of resources, lower prices for products, more employment
World wide, and higher product output
 THANK YOU!!
Group 3
Aries Rhay T. Canonoy
Joshua Cayabyab