market integration for senior high school grade 12.pptx

market integration

1. MARKET INTEGRATION

2. Market Integration

3. Market Integration Much of globalization is anchored on the role global economy plays in the different nations. We often think economy as something that covers a wide variety of financial aspects like employment, Gross Domestic Product (GDP) or the stability of stock markets. However we must understand that the economy is composed of people. It is the social institution that organizes all productions, consumptions and trade of goods in the society.

4. International Financial Institutions It is financial institution that has been established by more than one country, and hence are subjects of international law. Its owners or shareholders are generally national governments

5. Bretton Woods System It is established because of the fear of the recurrence of lack of cooperation among nation-states, political instability, and economic turmoil. Reduction of barriers to trade and free flow of money among nations became the focus to restructure the world economy and ensure global financial stability (Ritzer, 2015)

6. 5 key elements of Bretton wood system expression of currency in terms of gold or gold value to establish a par value (Boughton, 2007) the official monetary authority in each country would agree to exchange its own currency for those of other countries at the established exchange rates, plus or minus a one percent margin ( Boughton, 2007) the establishment of an overseer for these exchange rates; thus, the International Monetary Fund (IMF) was founded. eliminating restrictions on the currencies of member states in the International trade U.S. Dollar became the global currency

7. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organizations It focused on trade goods through multinational trade agreements conducted in many rounds of negotiation The General Agreement on Tariffs and Trade (GATT) is the foundational agreement reached between many countries after World War II to reduce tariffs, quotas, and other barriers to trade. The agreement started with 23 nations signing in 1947 but had over 100 signatories by 1973.

8. Market Integration The IMF is a global organization that works to achieve sustainable growth and prosperity for all of its 190 member countries. International Monetary Fund (IMF) The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries.  World Bank

9. World Trade Organization The WTO headquarters is located in Geneva, Switzerland with 152 member states as of 2008 ( Trachtman , 2007). It is an independent multilateral organization that became responsible for trade in services, non-tariff related barriers to trade, and other broader areas of trade liberalizations

10. IMF AND WTO They were founded after the World War II Most of the countries were member of the institutions. Both banks, but instead started by individuals like other regular banks, they were started by countries. These institutions aimed to help the economic stability of the world. The IMF's main goal was to help countries which were in trouble at that time and who could not obtain money by any means. It is served as a lender or a last resort

11. MARKET INTEGRATION The Organization for Economic Cooperation and Development (OECD) The Organization of Petroleum Exporting Countries (OPEC) The European Union (EU)

12. The Organization for Economic Cooperation and Development (OECD) the most encompassing club of the richest countries in the world with 35 member states as of 2016, with Latvia as its latest member. It is highly influential, despite the group having little formal power .

13. The Organization of Petroleum Exporting Countries (OPEC) I n 1960, they were originally comprised of Saudi Arabia, Iraq, Kuwait, Iran, and Venezuela. Still part of the major exporters of oil in the world today. It was formed because member countries wanted to increase the price of oil

14. The European Union (EU) made up of 28 member states. Most members in the Eurozone adopted the euro as basic currency but some Western European nations like Great Britain, Sweden, and Denmark did not.

15. North American Free Trade Agreement (NAFTA) North American Free Trade Agreement (NAFTA)

16. A trade pact between the United States, Mexico, and Canada created on January 1, 1994 when Mexico joined the other nations. It helps in developing and expanding world trade by broadening international cooperation. It also aims to increase cooperation for improving working conditions in North America by reducing barriers to trade as it expands the markets of the three countries

17. THANK’S Y’ALL ― KATH