Market Integration and Its Evolution

What is the Latin origin of the word 'market'?

Mercantilus
Mercatus (correct)
Marculus
Marketus

What was the primary outcome of the Agricultural Revolution?

The shift from a manufacturing-based economy to a service-based economy
The establishment of permanent settlements and trade networks (correct)
The development of new economic tools
The rise of industry through mass production

What is the primary characteristic of Market Integration?

The creation of separate national economic regions
The restriction of goods and services across countries and regions
The emphasis on human labor in production
The combination of separate national economic regions into a larger economic region (correct)

Which revolution led to the development of new economic tools, such as steam engines and mass production?

The Industrial Revolution (C) Signup and view all the answers

What is the primary outcome of the Information Revolution?

The shift from a manufacturing-based economy to a service-based economy (D) Signup and view all the answers

What is the state of affairs referred to as 'integration'?

A state of affairs involving attempts to combine separate national economic regions (D) Signup and view all the answers

What led to the proposed merger between Walt Disney and Pixar?

Horizontal integration in the same industry (D) Signup and view all the answers

What was the result of Disney's acquisition of Pixar in 2006?

The combined expertise of both companies led to great works in the movie-making business (B) Signup and view all the answers

What was the primary reason for Disney's acquisition of Pixar?

To improve Disney's market share in the animation industry (A) Signup and view all the answers

What was the value of Disney's acquisition of Pixar in 2006?

$7.4 billion (A) Signup and view all the answers

What was the result of PLDT's acquisition of Digitel in 2011?

PLDT expanded its share in the telecommunications industry (A) Signup and view all the answers

What was the brand owned by Digitel, acquired by PLDT in 2011?

Sun Cellular (C) Signup and view all the answers

What is the primary motivation for a company to pursue backward vertical integration?

To reduce costs, increase revenues, and improve efficiency in the production process (A) Signup and view all the answers

What is the result of PLDT's merger with Sun Cellular?

A stronger competitive position in the telecommunications industry (A) Signup and view all the answers

What is vertical integration?

A process of acquiring or merging with firms in the same industry (B) Signup and view all the answers

What is the purpose of a company pursuing backward vertical integration?

To create barriers to entry for new industry entrants (A) Signup and view all the answers

What is the result of a company pursuing horizontal integration?

A stronger competitive position in the industry (A) Signup and view all the answers

What is an example of a horizontal integration strategy?

A company merging with a competitor in the same industry (C) Signup and view all the answers

What is the primary characteristic of the Information Revolution in relation to jobs?

Shift towards service-oriented and idea-based work (A) Signup and view all the answers

What is the result of business process outsourcing (BPO) companies in the Philippines?

A significant contribution to the economy through service-oriented work (A) Signup and view all the answers

What is the effect of advancements in technology on the economy of the Philippines?

The growth of the digital economy (B) Signup and view all the answers

What is the result of the Information Revolution on the economy of the Philippines?

A shift from a manufacturing-based to a service-oriented economy (B) Signup and view all the answers

What is horizontal integration in the context of business?

A company combining forces with another company that offers similar products or services (A) Signup and view all the answers

What is an example of horizontal integration?

Two companies in the same industry merging to form a new entity (B) Signup and view all the answers

What is the primary reason why Apple Inc. employed a vertical integration strategy?

To reduce its dependence on third-party suppliers (C) Signup and view all the answers

Which of the following is an example of forward vertical integration?

Netflix producing its own original films and shows (B) Signup and view all the answers

What is the outcome of Petron's backward integration strategy?

Reduced dependence on third-party suppliers (D) Signup and view all the answers

Which of the following companies has employed a backward vertical integration strategy?

All of the above (D) Signup and view all the answers

What is the primary goal of a company that employs a backward vertical integration strategy?

To reduce its dependence on third-party suppliers (A) Signup and view all the answers

Which of the following is a benefit of backward vertical integration?

Ability to advance new products and technology at a more rapid pace (D) Signup and view all the answers