MARKET

INTEGRATION
Group 2 presentation
Members:
Rembrandt C. Agustin
Laurence M. Camanay
Market Integration

■ Market integration occurs when prices among different

locations or related goods follow similar patterns over
a long period of time. Groups of goods often move
proportionally to each other and when this relation is
very clear among different markets it is said that the
markets are integrated.
What is market integration

■ Examples of market integration are the establishment

of wholesaling facilities by food retailers and the
setting up of another plant by a milk processor.
■ In each case, there is a concentration of decision
making in the hands of a single management.
How is market integration being defined?

■ Markets are integrated if prices among different

locations move in similar patterns, given that the
differences between prices is explained by the transfer
and transaction costs as food flows between the
locations.
What is the main point of market
integration?
■ Increased economic efficiency: Market integration
allows for the efficient allocation of resources,
enabling countries to specialize in the production of
goods and services in which they have a comparative
advantage.
Why is marketing integration important?

■ Integrated marketing offers a smooth, customer-

focused experience by incorporating all marketing
communication elements, including public relations,
social media, and advertising. It implies that your
message should have a unified look, feel, and tone
across your channels.
What is the importance of studying
market integration?
■ Market integration is an important concept in
international economics. The extent to which a local
market is integrated in the wider regional or even
global market is indicative of possible arbitrage
opportunities and whether price changes from
international markets are transmitted to the local
market.