Daniel John E.

Baja BSBA MM 1-2

Renz Certeza Contemporary World

Questions.

1. What is market integration? How is this term related to globalization?

- It is a term that is used when a group of goods or services in different locations

experience a similar pattern to an increase and decrease to its market price. Market
integration is related to globalization since it help the traders to have an indicator to the
movement of the price of goods in the market. Globalization is about trading of
technology, services and goods all over the world market integration is very connected
to it since it is about the movement of the prices of goods to different parts of the world.

2. How do developed countries affect peripheral and semi -peripheral countries in

terms of economic development?

- Since developed or core countries are rich in capital and technology they are helping
the peripheral and semi-peripheral countries by buying raw materials and hiring skilled
workers from them. Also by joining in international financial institutions wherein they are
offering long or short term loans to the low income countries in order for them to have a
capital in developing their economy. Therefore core countries affect the economic
development of low income countries by buying the resources that are available from
them and by joining in IFI’s that will offer loans for these countries.