“MARKET INTEGRATION,

INTERNATIONAL
FINANCIAL
INSTITUTIONS, GENERAL
AGREEMENT ON TRADE “
 MARKET INTEGRATION
Market integration – The degree to which market
systems in different geographical areas are connected to
each other.
Examples of market integration are the establishment
of wholesaling facilities retailers and the setting up of
another plant by a milk processor.
 REASONS FOR MARKET INTEGRATION

To remove transaction costs

Foster competition
Provide better signals for
optimal generation and
consumption decisions
Improve security of supply
 3 TYPES OF MARKET INTEGRATION

1.Horizontal
integration
2.Vertical integration
3.Conglomeration
 HORIZONTAL INTEGRATION
is the acquisition of
a business operating
at the same level of
the value chain in
the same industry.
 VERTICAL INTEGRATION
 A company that opts
for vertical integration
takes complete control
over one or more stages
in the production or
distribution of a
product.
EXAMPLE OF VERTICAL INTEGRATION
 CONGLOMERATE INTEGRATION

The process whereby a

firm expands by
supplying a range of
different products and, as
such, operates in a
number of markets rather
than a single market.
 INTERNATIONAL FINANCIAL INSTITUTIONS

To reduce global poverty and

improves people’s living conditions
and standards.
To support sustainable economic,
social and institutional development.
To promote regional cooperation
and integration.
 FIVE INTERNATIONAL FINANCIAL INSTITUTIONS

1. The World Bank Group

2. The African Development Bank
3. The Asian Development Bank
4. The Inter-American Development
Bank
5. the European Bank for
Reconstruction and development
 GENERAL AGREEMENT ON TRADE
The General Agreement on trade in
services (GATS) is a treaty of the world
trade organization (WTO) that entered into
force in January 1995 as a result of the
Uruguay Round negotiations. The treaty was
created to extend the multilateral trading
system to service sector, in the same way the
General Agreement on tariffs and trade
(GATT) provides such as a system for
merchandise trade.