Manuel, Christine

Olimon, Mark Joseph

D45

The Contemporary World

1. What is the importance of building an alliance with a financial

international institution?
The importance of building an alliance with a financial international institution is to
secure our financial funds, savings and investments. It also helps our economy to be
secured and safe, and it helps our economy to be sustainable. It will also enhanced the
economic and fund activities of our country.

2. What is the effect of market integration in a country's

economy? The effect of market integration in a country’s economy is that it will make
the exchanging of goods more easily and because of that it will help the economic
growth to increase. Also it will increase the economic productivity because this can
help to enhance the production of goods and services. An lastly, it will make the
prices of goods lower because market integration can increase the competition among
businesses.

3. Give an example situation where foreign direct investment is evident.

One example of a situation where foreign direct investment (FDI) is evident is when a
multinational corporation decides to establish a manufacturing plant in a foreign This
investment not only brings capital into the country but also creates job opportunities
and boosts the local economy. The multinational corporation benefits from cost
advantages, such as lower labor costs or access to raw materials, while the host
country gains from increased economic activity and technology transfer.

4. Give an example situation of market integration.

One example of market integration is the European Union (EU), which has taken
steps to create a unified market among its member countries. The EU has
implemented various measures to promote the free movement of goods, services,
capital, and labor across its member states. For instance, there are no trade barriers,
such as tariffs or quotas, between EU countries. This allows companies to expand
their operations and sell their products or services freely within the EU without facing
additional trade restrictions.