Market integration

• Refers to the process of creating a unified market place where goods, services, and capital can flow freely between countries or regions.

  Market Integration
• Market Integration Reduce Trade Barriers

  • tariffs
  • adaption of common currency
  • harmonization of regulatory standards
  • development of infrastructure to facilitate transportation and communication
• Market Integration

  • Can create winners and losers
• Types of Market Integration

  • Horizontal Integration
  • Vertical Integration
  • Conglomeration
• Horizontal integration


  the acquisition of a business operating at the same level of the value chain in the same industry—that is, they make or offer similar goods or services.
• Horizontal Integration


  is a business strategy in which one company grows its operations at the same level in an industry
• Horizontal Integration


  It limits the competition
• Example of Horizontal Integration

  • Meta
  • Jollibee Foods corporation
• Vertical Integration


  is a strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers
• Vertical Integration 


  It requires a company's direct ownership of suppliers, distributors, or retail locations to obtain greater control of its supply chain
• Vertical integration


  Apple designs and manufactures its own products, then sells them online and at physical Apple stores
• Conglomeration


  the combination of two or more business entities engaged in either entirely different or similar businesses that fall under one corporate group, usually involving a parent company and many subsidiaries
• Conglomeration 


  is a firm or business enterprise having different economic activities in different unrelated industries
• Conglomeration 


  is a corporation made up of several different, independent businesses
• Conglomeration 


  one company owns a controlling stake in smaller companies that each conduct business operations separately.
• Conglomeration 


  can be created in several ways, including mergers or acquisitions
• Conglomeration 


  The parent company can cut back the risks from being in a single market by becoming a conglomerate diversified across several industry sectors
• Conglomeration 


  Economists warn that conglomerates can become too oversized to operate efficiently
• example of conglomeration

  SM investment corporation
• Global corporation


  Large companies that operate in many different countries
• give the 2 different of global corporation

  • Multinational corporation
  • Transnational corporation
• Multinational Corporation


  companies that have business operations in at least one country other than its home country
• Multinational Corporation


  have offices, factories, or other facilities in different countries around the world as well as a centralized headquarters which coordinates global management
• Give the example Brand of Multinational Corporation

  • Toyota
  • apple
  • adidas
  • Microsoft
  • Volkswagen
• transnational corporation


  refers to a corporation that operates in other countries, other than the home country, and does not have a centralized management system
• Transnational Corporation


  are free to make decisions independently based on local markets as they do RESEARCH AND DEVELOPMENT ( R&D ) and marketing powers to each individual foreign market
• Transnational Corporation 


  decision making in a transnational is made by individual transnational corporations
• Give a Example of Transnational corporation

  • Nike
  • coca cola
  • McDonald
  • amazon
• Key Similarities of MNCs and TNCs

  can be powerful drivers of economic growth. They can contribute significantly to innovation, competitiveness, and job creation
• Key similarities of Mnc and tnc

  Multinational Corporations have operations in more than one country. Transnational corporations also have operations in more than one country but typically focus on a single market
• Multinational corporations and Transnational corporations are highly complex organizations with a wide range of activities. They operate in many countries around the world and employ a large number of people


  Key similarities of MNC and TNC
• Difference between MNC and TNC

  Size: A Multinational corporation is typically larger because it has subsidiary firms in other countries. However, A Transnational corporation does not have a subsidiary firm
• Difference between MNC and TNC

  Headquarters: The headquarters of a Multinational corporation is usually located in a major home country, while the headquarters of a Transnational corporation may be located in multiple countries
• Drawbacks of Market Integration

  LIBERAL ECONOMIC PATH- Exploitation, Dominance of the West, Imperialism
• Drawbacks of Market Integration

  Economic policies must be in the States' interests .it must be the ultimate goal
• Drawbacks of Market Integration

  Local industries and National Sovereignty are affected
• Benefits of market integration

  it allows countries to specialize and trade without government interference, which can benefit all economies.
• Benefits of Market Integration

  It results in a reduction of costs and ultimately an increase in overall wealth
• Benefits of market integration

  Trade costs are reduced, and goods and services are more widely available, which leads to a more efficient economy
• Benefits of market integration

  Employees can move freely, and it leads to greater market expansion and technology sharing, which ultimately benefits all economies