CHAPTER 3:

MARKET
INTEGRATION
 MARKET
INTEGRATION

Presenter
 MARKET INTEGRATION

• Market integration has a number of social benefits, including increasing competition

in the provision of financial services and investment opportunities for consumers.
Furthermore, integrated financial markets function as private risk-sharing
mechanisms, facilitating the smoothing of domestic economic and financial cycles.
Furthermore, market integration allows for greater asset allocation, which
contributes to better risk management and financial stability.

• Market integration can be seen in the establishment of wholesaling facilities by food

retailers and the establishment of another plant by a milk processor. In each case,
decision-making power is concentrated in the hands of a single management.
 MARKET INTEGRATION

• Market Integration is a strategic approach to integrating communications and

interactive experiences aimed at specific audiences and individuals that coordinates
all aspects of a brand's marketing, including paid media (offline advertising, direct
marketing and online display and programmatic)

• The effect of market integration has a direct and positive impact on carbon
emissions, as well as an indirect and positive impact on carbon emissions via the
level of economic development, and a negative impact on carbon emissions via the
level of technological development.
THE BRETTON
WOODS SYSTEM

Presenter
 THE BRETTON WOODS SYSTEM

• The Bretton Wood system was 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
international ties.
• John Maynard Keynes who believed that economic crises occur not
when a country does not have enough money but when money is not
being spent and, there by not moving.
TWO FINANCIAL INSTITUTIONS
CREATED IN THE BRETTON
WOODS SYSTEM
 THE TWO FINANCIAL INSTITUTIONS

• International Bank for Reconstruction and Development (World Bank) -

responsible for funding postwar reconstruction projects.
• International Monetary Fund- global lender of last resort to prevent
individual countries from spiraling into credit crises.
 THE GENERAL AGREEMENT on TARIFFS
and TRADE (GATT)
and
THE WORLD TRADE ORGANIZATION (WTO)

Presenter

THE GENERAL AGREEMENT on TARIFFS
and TRADE (GATT)
• The General Agreement on Tariffs and Trade
(GATT) was a multilateral treaty.
• This was signed on 30 Oct.1947 & came into force
from January 1,1948
• It was signed by 96 gov. Known as contraucting
parties
• It was neither an organization nor a court of justice
• It was a decision making body with a code of riules
• In 1995 the GATT was absorbed into the Worid
Trade Onganization (WTO)
GATT and WTO
THE WORLD TRADE ORGANIZATION (WTO)
• The World Trade Organization (WTO)is the only
global intermational organization dealing with the
rules of trade between nations.
• At its heart are the WTO agreements, negotiated and
signed by the bulk of the worid's trading nations and
ratified in their parliaments.
• The goal is to help producers of goods andservices,
exporters, and importers conduct their business.
 THE INTERNATIONAL MONETARY
FUND (IMF) AND THE WORLD
BANK

Presenter
 THE INTERNATIONAL MONETARY FUND (IMF) AND THE
WORLD BANK

• The primary goal of the IMF is to assist nations that are in financial difficulty.
requesting financial assistance as a result of the economic crisis.
• The IMF acts as a lending institution.
• Countries, implying that they give money to countries in order to assist them in
their difficulties
• Unlike the World Bank, it seeks to reduce poverty worldwide.
• It supported projects in a certain country that would aid in the achievement of its
objectives.
 THE INTERNATIONAL MONETARY FUND (IMF) AND THE
WORLD BANK

• Specifically, a country's investment in education to assist its population in becoming

well-educated and competitive in comparison to other countries

• These two institutions have assisted many countries in regaining their footing.
Along with this, they aided several corrupt political figures and They occasionally
have difficulties collecting their money.
 THE ORGANIZATION FOR ECONOMIC
COOPERATION and DEVELOPMENT
(OECD),
THE ORGANIZATION OF PETROLEUM
EXPORTING COUNTRIES (OPEC),
and THE EUROPEAN UNION (EU)

Presenter
 THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
 OECD is a global policy forum that promotes policies to improve the economic and social
well being of people around the world and to promote sustainable economic growth that was
established year 1961.

ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES

 OPEC is a permanent, intergovernmental organization that created at the Baghad Conference
on September 10-14, 1960.
 This organization has 13 members countries.
 The main purpose for establishing this organization is to increase the price of oil.
 EUROPEAN UNION
 EU is international organization that has unique economic and political union between 27
European Countries.

3 FACTS ABOUT THE EUROPEAN UNION

1. Countries pay membership dues.

2. Countries vote on laws.
3. Citizens of Countries or EU citizens.
 NORTH AMERICAN
FREE TRADE
AGREEMENT (NAFTA)
Presenter
 NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

• The European Union, also known as the European Community is an economic

union, which means it is a region in Europe where all of the countries are a part of a
common trading agreement and common currency. The European Union has 28
members as of 2017.

• If you wished to join the European Union, you had to pay a fee the cost of
membership. After becoming a member, your citizens automatically become EU
citizens, allowing you to travel freely throughout the EU without the need for a
passport.
 NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

• The European Union has 28 member states, all of which use the euro as their
common currency. Western European countries such as the United Kingdom,
Sweden, and Denmark, however, continue to use their own currencies while being
members of the EU.

• The North American Free Trade Agreement (NAFTA) was established on January 1,
1994, by the United States, Mexico, and Canada. Prior to 1989, only Canada and the
United States had this agreement. This is a free trade agreement between the three
countries; they have removed trade barriers to allow unfettered trade between them.
 NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

• The idea behind this agreement was to help workers in developed countries compete
with those in developing countries by eliminating trade barriers. The first thing that
NAFTA did was eliminate bariers between the three countries. This was beneficial
to workers and businesses in each country since it made exporting easier. It also
allowed companies in Mexico to ship goods across the border easily which led to
them having to pay less workers since they could now transfer their manufacturing
jobs to Mexico where costs are lower due to the lack of social benefits. However, as
the agreement was implemented, the United States and Canada saw losses of jobs to
Mexico due to its lower production costs. This caused a decrease of wealth among
Canada and the U.S. It also raised concern about the growing dependence on
imports from Mexico and farther integration into their economy. Initially, NAFTA’s
trade liberalization contributed to significant growth and savings in these countries.