MARKET INTEGRATION

MARKET INTEGRATION. Multi-colored push pins connected by a black wire.

MARKET INTEGRATION refers to the process of creating a unified marketplace where goods, services and capital can flow freely between countries or regions..

MARKET INTEGRATION. Market integration occurs when prices among different locations or related goods follow similar patterns over a long period of time..

MARKET INTEGRATION. Groups of goods often move proportionally to each other and when this relation is very clear among different markets it is said that the markets are integrated. Thus, market integration is an indicator that explains how much different markets are related to each other..

MARKET INTEGRATION. A marketer plays the role of an integrator in the sense that he collects feedback and vital inputs from other channel members and consumers and provides product solutions to customers by coordinating multiple functions of the organization..

It is the central aspect of economic globalization, which refers to the increasing interconnectedness of economies and societies around the world..

INTERNATIONAL FINANCIAL INSTITUTIONS (IFIs). An International Financial Institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law..

Its owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders..

The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions (created by two countries) exist and are technically IFIs..

The best known IFIs were established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system..

TYPES OF IFIs:. 1. Multilateral Development Bank (MDB) - an institution, created by a group of countries, that provides financing and professional advice to enhance development..

An MDB has many members, including developed donor countries and developing borrower countries. MDBs finance projects through long-term loans at market rates, very-long-term loans below market rates (also known as credits), and grants..

TYPES OF IFIs:. 2. Bretton Woods Institutions The best-known IFIs were established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system..

They include the World Bank, the IMF, and the International Finance Corporation. Today the largest IFI in the world is the European Investment Bank which lent 61 billion euros to global projects in 2011..

TYPES OF IFIs:. 3. The regional development banks consist of several regional institutions that have functions like the World Bank group's activities, but with particular focus on a specific region. Shareholders usually consist of the regional countries plus the major donor countries..

The best-known of these regional banks cover regions that roughly correspond to United Nations regional groupings, including the Inter-American Development Bank, the Asian Development Bank; the African Development Bank; the Central American Bank for Economic Integration; and the European Bank for Reconstruction and Development..

The Islamic Development Bank is among the leading multilateral development banks. IsDB is the only multilateral development bank after the World Bank that is global in terms of its membership. 56 member countries of IsDB are spread over Asia, Africa, Europe and Latin America..

TYPES OF IFIs:. 4. Bilateral Development Bank is a financial institution set up by one individual country to finance development projects in a developing country and its emerging market, hence the term bilateral, as opposed to multilateral..

(Others) Financial institutions of neighboring countries established themselves internationally to pursue and finance activities in areas of mutual interest; most of them are central banks, followed by development and investment banks..

THE WORLD BANK. The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects..

THE GOALS OF WORLD BANK. To end extreme poverty, the Bank's goal is to decrease the percentage of people living with less than $1.90 a day to no more than 3 percent by 2030..

THE GOALS OF WORLD BANK. To promote shared prosperity, the goal is to promote income growth of the bottom 40 percent of the population in each country..

THE WORLD BANK ORGANIZATIONS:. 1. International Bank for Reconstruction and Development (IBRD) is a global development cooperative owned by 189 member countries. As the largest development bank in the world, it supports the World Bank Group’s mission by providing loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries, as well as by coordinating responses to regional and global challenges..

THE WORLD BANK ORGANIZATIONS:. 2. International Development Association (IDA) - part of the World Bank that helps the world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing zero to low-interest loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions..

IDA complements the World Bank’s original lending arm—the International Bank for Reconstruction and Development (IBRD). IDA supports a range of development activities that pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions. IDA is one of the largest sources of assistance for the world’s 74 poorest countries and is the single largest source of donor funds for basic social services in these countries..

3. International Finance Corporation (IFC) is the largest global development institution focused on the private sector in developing countries. IFC, a member of the World Bank Group, advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries..

4. Multilateral Investment Guarantee Agency (MIGA) “Our mandate is to promote cross-border investment in developing countries by providing guarantees (political risk insurance and credit enhancement) to investors and lenders.”.

THE WORLD BANK ORGANIZATIONS. 5. International Centre for Settlement of Investment Disputes (ICSID) - world’s leading institution devoted to international investment dispute settlement. It has extensive experience in this field, having administered most of the all-international investment cases. States have agreed on ICSID as a forum for investor-State dispute settlement in most international investment treaties and in numerous investment laws and contracts..

INTERNATIONAL MONETARY FUND (IMF). The International Monetary Fund, or IMF, promotes international financial stability and monetary cooperation. It also facilitates international trade, promotes employment and sustainable economic growth, and helps to reduce global poverty..

The IMF is governed by and accountable to its 190 member countries. The IMF was conceived in July 1944 at the United Nations Bretton Woods Conference in New Hampshire, United States. The IMF's primary mission is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries and their citizens to transact with each other..

THE EUROPEAN INTEGRATION. European integration is the catch-all term for cooperation between European countries, usually but not exclusively referring to EU (European Union) member states..

THE EUROPEAN INTEGRATION. More integration implies greater shared decision-making, shared laws, and shared legal and political systems. Since the second world war, European integration has progressively deepened, including through non-EU forums such as the Council of Europe..

THE EUROPEAN INTEGRATION. Nevertheless, the EU is at the core of European integration and represents the deepest political, economic, and legal integration of countries anywhere in the world. Within the EU, most member states have now abolished border controls, removed many other internal barriers to trade and investment, and adopted a shared single currency..

THE LEGAL BASIS FOR EUROPEAN INTEGRATION. The European Union has legal personality and as such its own legal order which is separate from international law. Furthermore, EU law has direct or indirect effect on the laws of its Member States and becomes part of the legal system of each Member State..

THE LEGAL BASIS FOR EUROPEAN INTEGRATION. The European Union is a source of law. The legal order is usually divided into primary legislation (the Treaties and general legal principles), secondary legislation (based on the Treaties) and supplementary law..

BENEFITS OF EUROPIAN INTEGRATION. The euro offers many benefits for individuals, businesses and the economies of the countries that use it. These include: the ease with which prices can be compared between countries, which boosts competition between businesses, thereby benefiting consumers price stability.

the euro makes it easier, cheaper and safer for businesses to buy and sell within the Euro area and to trade with the rest of the world improved economic stability and growth better integrated and therefore more efficient financial markets greater influence in the global economy a tangible sign of a European identity..

ASEAN INTEGRATION. The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand..

ASEAN INTEGRATION. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN..

IMPORTANCE OF ASEAN CHARTER. The importance of the ASEAN Charter can be seen in the following contexts: New political commitment at the top level New and enhanced commitments New legal framework, legal personality.

IMPORTANCE OF ASEAN CHARTER. New ASEAN bodies Two new openly recruited DSGs More ASEAN meetings More roles of ASEAN Foreign Ministers New and enhanced role of the Secretary-General of ASEAN Other new initiatives and changes.

Development of International Trade. International Companies Importers and exporters with no investments outside their home countries.

Development of International Trade. Multinational Companies Have investments in other countries, but not have a coordinated product offering in each country. They are more focused on adapting their products and services to each individual local market.

Development of International Trade. Global Companies Have investments and are present in many countries. They typically market their products and services to each individual market.