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Chapter 2 Activity 2 1

1. The document discusses the causes and effects of market integration in terms of geographical location, price, and community demand. It shows this relationship through a table that lists causes such as the merging of companies and expanding markets, and effects such as reduced competition, increased employment opportunities, and decreased goods prices leading to increased consumer purchasing power. 2. The document examines the history of the global economy and its relationship to market integration and international financial institutions. It notes that open economies and free trade have characterized this relationship in recent decades, though some critics argue it disadvantages well-paid workers in rich countries. International financial institutions work to promote regional cooperation and integration in the social and economic spheres. 3. The key differences between the

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405 views3 pages

Chapter 2 Activity 2 1

1. The document discusses the causes and effects of market integration in terms of geographical location, price, and community demand. It shows this relationship through a table that lists causes such as the merging of companies and expanding markets, and effects such as reduced competition, increased employment opportunities, and decreased goods prices leading to increased consumer purchasing power. 2. The document examines the history of the global economy and its relationship to market integration and international financial institutions. It notes that open economies and free trade have characterized this relationship in recent decades, though some critics argue it disadvantages well-paid workers in rich countries. International financial institutions work to promote regional cooperation and integration in the social and economic spheres. 3. The key differences between the

Uploaded by

Wild Rift
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.Identify the cause and effect of market integration in terms of geographical location, price.

Community demand.

Show your answer through table.

CAUSE EFFECT
GEOGRAPHICAL Merge of Companies Reduces competition
LOCATION Expanding Market Employment opportunity
PRICE & COMMUNITY Decrease in the price of goods Increase consumer
DEMAND purchasing control
Integrated Market Reduce the cost of trade
Consumers see out new content If one can provide fresh
content across a range of
several platforms, it is
more like that customers
will find and rely on
Providing customers various Increase the standard
choices of goods living of people
Increase financial and Higher economic growth
economic efficiency
Market area being fully Prices of a particular
integrated with other group commodity can align
company across the area

2.Study the history of global economy and its relationship to market integration and international
financial institution.

The international expansion of capitalism across national borders and with limited
government constraints has characterized the relationship between market integration and
international financial institutions in recent decades. The global economy has been criticized by
critics who claim that open economies and free trade rob well-paid workers in rich countries
while producing workshops in poor countries. Its proponents argue that free capital movement
encourages investment and job creation in developing countries. This is where globalization
occurs. Lastly, the relationship to market integration and international financial institution is that
they both participate together to generate supply and demand of funds.

To sum it up, the relationship between the three is the international financial institutions
its roles is in the social and economic to promote regional cooperation and integration.

 
3.   Differentiate Global Economy from market Integration

When there is high integration, it ensures that trade barriers are low and costs are
comparable between the two markets. Prices fluctuate between these markets as there is low
integration and high harriers to sell. Foreign trade contributes to market integration by lowering
trade barriers and increasing market fluidity. If international trade rises, the price will decrease
until it exceeds the price in the original market where the trade was made. On the other hand, the
global economy is the economy of all humans or citizens of the world, referring to the global
economic system that includes all economic activity within nations and between nations,
including production, consumption, economic management, exchange of financial values and
trade of goods and services.

Furthermore, the term "global economy" refers to the integrated global economic
activities that occur through several countries. It refers to the trade of goods and services
between countries, as well as how it has aided countries in specializing in products where they
have a competitive advantage. When prices among different locations or related products follow
similar trends over time, this is known as market integration. Groups of products always move in
proportion to one another, and when this relationship is very clear across markets, the markets
are said to be integrated.

Self-Reflection:

1. What is the significance of global corporation to society?

A global corporation, in the field of finance and investing, is one that has large
investments and facilities in many countries and does not have a dominant headquarters. The
laws of the country in which they are organized control global corporations.

The importance of global corporations to society is the its ability to expand customer
base. For instance, you, have the ability to expand your customer base. When you extend your
company into another country, you also expand your customer base. You have the potential to
lower the running costs. Expanding to another nation where production or labor costs are lower
allows you to save money on your operating costs. You will increase the company's growth rate.
If your business has been expanding rapidly in your region, market saturation is likely to cause
this growth to slow down. In that scenario, you should extend to another country to keep your
fast growth going.

2. What is the significance of market integration to society?

The importance of market integration to society is that, while digital marketing has
become the primary means by which many companies communicate with their consumers, it is
far from comprehensive. Traditional marketing is also an effective and personalized way to
develop a relationship with your clients, and you can try to incorporate both into your marketing
plan.
A cohesive message across various channels increases the probability that your target
audience will behave in the ways you want them to. When applied correctly, market integration
will help you save money by directing the right amount of resources to the most successful ways
that produce the best results. The emphasis of integrated marketing is on ensuring that your
content is clear, regardless of the medium used to deliver the message.

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