Scribd
Upload
119 views28 pages

Lesson 3 Market Integration

This document defines and provides examples of different types of market integration, including horizontal integration, conglomerate integration, vertical integration, preferential trading agreements, free trade agreements, customs unions, and common markets. It also provides examples like the European Union common market, NAFTA, ASEAN, MERCOSUR, and COMESA as instances of economic integration agreements.

Uploaded by

Angelique Chua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
119 views28 pages

Lesson 3 Market Integration

This document defines and provides examples of different types of market integration, including horizontal integration, conglomerate integration, vertical integration, preferential trading agreements, free trade agreements, customs unions, and common markets. It also provides examples like the European Union common market, NAFTA, ASEAN, MERCOSUR, and COMESA as instances of economic integration agreements.

Uploaded by

Angelique Chua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 28

TCWD111 - Lesson 3

What is a MARKET INTEGRATION?


--- a situation in which separate markets for the
same product become one single market
(Cambridge Business English Dictionary )

Example :
*when an import tax in one of the market is removed
Horizontal Integration
❖ is a type of Integration, by combining the market agencies to form
a union to reduce their effective member and the extent of actual
competition in market

❖ Partnership: collaborating with another company to tackle the


market together (with a common product, promotion, sales strategy, etc.)
❖ Merger: when two different companies in the same market become one
❖ Acquisition: when a company buys another within the same market

4
Conglomerate Integration
❖ A combination of agencies or activities not directly related
to each other may operate under a unified management

7
Vertical Integration
It occurs when a firm performs more than one activity in the
sequence of the marketing process.
➢ Forward integration
•if a firm assumes another function of marketing which is
closer to the consumption function, it is a case of forward
integration
➢ Backward integration
•this involves ownership or a combination of sources of supply
PREFERENTIAL TRADING
AGREEMENT

➢ trade agreements between countries


in which they lower tariffs for who
have signed the agreement, but not
for the rest of the world
CHINA-BANGLADESH

BANGLADESH-BHUTAN
FREE TRADE
AGREEMENT
➢ reduces barriers to trade among
member countries to zero, but each
member country still has autonomy in
deciding for external rate of tariff for
its trade with non-member countries
❖ North American Free Trade Agreement (NAFTA)
--- was implemented in order to promote trade between the U.S.,
Canada, and Mexico

❖ The ASEAN Free Trade Area (AFTA)


--- is a trade bloc agreement by the Association of Southeast Asian
Nations supporting local manufacturing in all ASEAN countries
CUSTOMS UNION

➢ an agreement to remove trade barriers


among members and impose uniform
trade restrictions against non-members

20
➢ an economic Customs Union founded in 1948
between Belgium, Netherlands and Luxembourg
COMMON MARKETS

➢ allows for the movement of labor


and capital within the member
countries

➢ Custom Unions + integration of


factor markets (capital and labor)
Example:
❖ EUROPEAN COMMON MARKET is the example
of common market which aims to provide the free
movement of goods, capital, services and labor within
the EUROPEAN UNION

➢ it refers to an agreement between countries that allows


product, services and workers to move freely across
borders
❖The Southern Common Market (MERCOSUR)
--- el Mercado Común del Sur (the Common Market of the South)
is a regional integration process, initially established by Argentina,
Brazil, Paraguay and Uruguay, and subsequently joined by
Venezuela and Bolivia

❖The Common Market for Eastern and Southern


Africa (COMESA)
--- is a free trade area that encompasses 19 countries stretching
from Libya to Zimbabwe
REFERENCES
 https://www.tfafacility.org/united-nations-conference-trade-and-development-unctad
 https://www.routledge.com/United-Nations-Centre-on-Transnational-Corporations-Corporate-Conduct-
and/Hamdani-
Ruffing/p/book/9781138896536#:~:text=The%20United%20Nations%20Centre%20on,multiplied%20and%20deepe
ned%20with%20globalization.
 https://atom.archives.unesco.org/go-59
 https://www.encyclopedia.com/social-sciences/encyclopedias-almanacs-transcripts-and-maps/transnational-
corporations#:~:text=A%20transnational%20corporation%20(TNC)%20is,xii
 https://courses.lumenlearning.com/boundless-management/chapter/the-global-
corporation/#:~:text=of%20each%20unit.-
,Global%20Corporations,markets%20in%20attaining%20revenue%20generation.
 https://www.unescwa.org/association-southeast-asian-nations-free-trade-are
 https://www.studocu.com/ph/document/polytechnic-university-of-the-philippines/the-contemporary-world
 https://slideplayer.com/slide/5930801/
 https://abhipedia.abhimanu.com/Article/IAS/NDI5MAEEQQVVEEQQVV/Stages-of-Economic-Integration-and-
trends-in-globalization--Economic-Affairs-IAS
 https://www.consuunt.com/horizontal-integration/

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy