lesson 3 contemporary

ECONOMIC INTEGRATION

Is also known as regional integration, is a treaty or agreement between cavonthien that typically involves the rediction or elimination of barriers to trade as well as the coordination of fiscal and monetary policies.

ECONOMIC INTEGRATION

It aims to reduce costs for both consumers and producers while increasing trade among the signatories.

ECONOMIC INTEGRATION

When neighboring countries agree on economic integration, trade barriers fall and political and economic collaboration improves

PREFERENTIAL TRADE AGREEMENT (PTA)

FREE TRADE AREA

CUSTOM UNION

COMMON MARKET

ECONOMIC AND MONETARY UNION

STAGES OF ECONOMIC INTEGRATIOΝ

PREFERENTIAL TRADE AGREEMENT (PTA)

Where countries reduce tariffs for certain goods or services between them to increase trade and cooperation.

FREE TRADE AREA

Where countries reduce trade barkiers among themselves but maintaining separate tariffs on imports from other countries.

CUSTOM UNION

Where member countries redmice trade barriers among themselves and impore a common external tariff on impolis from non member countries.

ECONOMIC INTEGRATION

can occur through a series of stages, each of which involves iifferent levels of cooperation and integration

COMMON MARKET

Where member countries have free movement of goods, capital, and labor across borders.

ECONOMIC AND MONETARY UNION

Where member countries have a single currency, central bank, and coordinated economic policies

HORIZONTAL

VERTICAL

CONGLOMERATE

MARKET EXTENSIONS

PRODUCT EXTENSION

REVERSE

TYPES OF COMPANY MERGERS

MERGER

Is the combination of two or more companies, achieved through structures like acquisition or joint venture, to achieve economies of scale, enter new markets, diversify operations, or eliminate competition.

HORIZONTAL

occurs when two or more companies operating in the same industry, at the same stage of production, and producing sumilar products or services combine into a single entity

VERTICAL

occurs when two or more companies operating at different stages of the same industry's supply chain combine

CONGLOMERATE

the combination of two or more firms operating in entirely unrvlared industries or different geographic areas.

MARKET EXTENSIONS

combines two companies that sell the same products of services but operate in different geographie markets or customer segments

PRODUCT EXTENSION

combines two companies operating in the same market or industry that sell vetated, non competing products.

REVERSE

is a transaction where a private company goes public by merging with or being acquired by an existing inactive public shell company

MERGERS

Can be complex, involving due diligence negotiations, and regulatory approval.

MERGERS

The outcome depends on factos like financial and operational performance goals, markets, and strategies