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    Market

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    Aries Rhay Canonoy
    Market integration refers to consolidating marketing functions within a single management framework. It removes transaction costs, fosters competition, and improves security of supply. Historically, economies have integrated from agricultural to industrial to information revolutions. Capitalism involves private ownership while socialism involves collective/public ownership. International institutions like the IMF, World Bank, WTO, OECD, OPEC, and trade agreements like NAFTA and GATT promote global economic cooperation and trade. Global corporations take advantage of opportunities across borders but also influence politics and allow worker exploitation.

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    Market

    Uploaded by

    Aries Rhay Canonoy
    28 views18 pages
    Market integration refers to consolidating marketing functions within a single management framework. It removes transaction costs, fosters competition, and improves security of supply. Historically, economies have integrated from agricultural to industrial to information revolutions. Capitalism involves private ownership while socialism involves collective/public ownership. International institutions like the IMF, World Bank, WTO, OECD, OPEC, and trade agreements like NAFTA and GATT promote global economic cooperation and trade. Global corporations take advantage of opportunities across borders but also influence politics and allow worker exploitation.

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    Market integration refers to consolidating marketing functions within a single management framework. It removes transaction costs, fosters competition, and improves security of supply. Historically, economies have integrated from agricultural to industrial to information revolutions. Capitalism involves private ownership while socialism involves collective/public ownership. International institutions like the IMF, World Bank, WTO, OECD, OPEC, and trade agreements like NAFTA and GATT promote global economic cooperation and trade. Global corporations take advantage of opportunities across borders but also influence politics and allow worker exploitation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views18 pages

    Market

    Uploaded by

    Aries Rhay Canonoy
    Market integration refers to consolidating marketing functions within a single management framework. It removes transaction costs, fosters competition, and improves security of supply. Historically, economies have integrated from agricultural to industrial to information revolutions. Capitalism involves private ownership while socialism involves collective/public ownership. International institutions like the IMF, World Bank, WTO, OECD, OPEC, and trade agreements like NAFTA and GATT promote global economic cooperation and trade. Global corporations take advantage of opportunities across borders but also influence politics and allow worker exploitation.

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    of 18

    MARKET INTEGRATION

    MARKET INTEGRATION

    A process that refers to corporate expansion by consolidating additional


    marketing functions and activities within a single management framework

    REASONS FOR MARKET INTEGRATION

    To remove Transaction cost


    Foster competition
    Provide better Signals for optimal generation and consumption decisions
    Improve Security of supply
    HISTORY OF GLOBAL MARKET INTEGRATION

    Before the rise of todays modern economy people only produce for their
    Family. Nowadays, economy demands the different sectors to work together
    in order to produce, distribute, and exchange product and services.
    DEVELOPMENT OF MARKET INTEGRATION

    FIRST PHASE- AGRICULTURAL REVOLUTION


    SECOND PHASE - INDUSTRIAL REVOLUTION
    THIRD PHASE- INFORMATION REVOLUTION
    DEVELOPMENT OF MARKET INTEGRATION
    FIRST PHASE- AGRICULTURAL REVOLUTION
    The time when human beings first domesticated plants and animals and no longer relied
    entirely on hunting and gathering.

    SECOND PHASE - INDUSTRIAL REVOLUTION


    A series of improvements in industrial technology transformed the process of
    manufacturing goods

    THIRD PHASE- INFORMATION REVOLUTION


    Period where in that reduce the use of human labor and shifted it from manufacturing
    economy to one that is based on Service work and production of ideas rather than
    Goods.
    TWO ECONOMICS MODELS OF INDUSTRIAL REVOLUTION

    CAPITALISM
    SOCIALISM CAPITALISM- A system in which all natural resources
    and means of production are privately owned.

    SOCIALISM- The mean of Production are under


    collective Ownership. Own by the Public to also
    support the Public.
    INTERNATIONAL FINANCIAL INSTITUTIONS

    World Economies have been brought closer by Globalization. It is reflected with


    the phrase "When the American economy sneezes, the rest of the World catches a
    cold"
    The Strength of a more powerful economy brings greater effects on other
    country. In the same manner, crises in weaker economies has less effect on other
    country
    THE BRETTON WOOD SYSTEM

    When was Bretton wood System


    inaugurated

    In 1944 during the United Nations Monetary and Financial


    Conference to prevent the catastrophes of the early
    decades of the century from reoccurring and affecting the
    international ties.
    5 KEY ELEMENTS OF BRETTON WOOD SYSTEM

    First Element- The expression of currency in terms of gold or Gold value to establish a par
    value.
    Second Element- The official monetary authority in each country(a central bank or its
    equivalent) would agree to exchange its own currency for those of other countries at the
    established exchange rates, plus or minus a one-percent margin
    .Third Elements-The establishment of an overseer for these exchange rates; thus monetary
    fund(IMF) was founded.
    Fourth Element- Elimination restrictions on the currencies of member states in the
    international trades.
    Fifth Elements- The US dollar become the Global Currency.
    GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)

    A forum for the meeting of representatives from 23 members of Countries. It


    focused on trade Goods through Multinational trades agreements conducted
    in many "rounds" of negotiation.

    WORLD TRADE ORGANIZATION (WTO)

    WTO is an independent multilateral organization that became responsible for trade


    in services, non tariff-related barrier to trade and other broader areas of trade
    Liberalization.
    WTO is based was that of neoliberalism, which means that by reducing and
    eliminating barriers, all nation will benefits.
    INTERNATIONAL MONETARY FUND (IMF)

    International Monetary Fund and World Bank were founded after the World
    War II. These Institutions aimed to help Economic stability of the World.

    IMF main Goal was to help Countries which where in trouble, and who could
    not obtain money by any means. IMF served as a lender or a last resort
    ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT(OECD)

    The most encompassing club of the richest country in world


    ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES(OPEC)

    Was formed because members countries wanted to increase the price of oils, which in the
    past had relatively low prices and field in keeping up with inflations

    Saudi Arabia, Iraq, Kuwait, Iran, Venezuela, United Arab Emirates, Algeria, Libya, Qatar,
    Nigeria, and Indonesia
    NORTH AMERICAN FREE TRADE AGREEMENT(NAFTA)

    It is pack between United States, Mexico, and Canada, it was created on June 1, 1994.
    NAFTA helps in developing and expanding World Trade by broadening international
    corporation.
    Aims to increase cooperation for improving working conditions in North America by
    reducing barriers to trade as it expands the market of three countries.

    POSITIVE EFFECTS- it lowered prices by removing tariffs, open up new opportunities for
    small and medium sized businesses to establish a name for itself, it created 5 million U.S
    jobs.
    NEGATIVE EFFECTS- include excessive pollutions, loss of manufacturing jobs,
    exploitations of workers in Mexico, and moving Mexican farmers out of business
    GLOBAL CORPORATION

    The increase of International trade has both created and supported by International regulatory
    Groups, like WTO, and transnational trade agreements,. like NAFTA.
    The trade regulatory groups and agreements regulate the flow of goods and services between
    countries. They reduce tariffs, which are taxes on import and makes custom procedure easier.

    Companies that extend beyond the borders are called multinational or transnational
    corporation(MNSs or TNCs)
    They are also referred to Global Corporations
    They intentionally surpass national boarders and take advantage of opportunities in different
    countries to manufacture, distribute, market and sell their products
    GLOBAL CORPORATION

    Transnational Corporation have a significant role in the Global economy.


    Influence the Economy and Politics by donating money to specific political campaign
    or lobbylist.
    Influence the Global trade laws of international regulatory groups.

    Negative effects of Globalization from transnational corporations


    Trade does promote the self-interested agendas of corporations and give them autonomy.
    The Global corporations also influenced politics and allow workers to be exploited.
    Positive Effects of transnational Corporation
    These include better allocation of resources, lower prices for products, more employment
    World wide, and higher product output
    THANK YOU!!
    Group 3
    Aries Rhay T. Canonoy
    Joshua Cayabyab

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