Module 3 - Market Integration

Market Integration

It is the fusing of markets into one

Global Market Integration

It means that the price difference between countries are eliminated as all markets become one

Long distance trade, driven by growing population and income, and created demand for new products

Note worth events from the First milenium BC of Global Market Integration

Globalization took off, and price differences started to close because of the transport revolution and opening of the suez canal

Note worth events in the 1820s for Global Market Integration

highly integrated

Just before world war I, the global economy was?

steam powered transportation

During the 19th century and onwards, technological change helped integrate markets because of?

Domestically produced goods

During the 1930s amid the Great Depression, governments imposed tariffs which were intended to switch the demand for?

Smoot-Hawley Tariff

Enacted in the United Stated which raised tariffs on imported goods

Tariffs

Reduced the demand for foreign goods

Institutional Difference between countries, incompatibility with democracy and sovereignty, removal of institutional variations between countries, and it suffocates countries’ economic development

Problems in Global Market Integration

Harmonization of institutions across countries, and brings prosperity

What are the advantages of Global Market Integration