Green and Yellow Illustrative Filipino Community Presentation (1).pdf

 LET'S TALK ABOUT MARKET INTEGRATION PRESENTED BY: GROUP 2  TOPIC OUTLINE GLOBAL MARKET HISTORY OF MARKET FACTORS DRIVING INTEGRATION INTEGRATION MARKET INTEGRATION ATTRIBUTES OF ROLE AND GOALS OF GLOBAL CORPORATION INTERNATIONAL FINAN...

 LET'S TALK ABOUT MARKET INTEGRATION PRESENTED BY: GROUP 2  TOPIC OUTLINE GLOBAL MARKET HISTORY OF MARKET FACTORS DRIVING INTEGRATION INTEGRATION MARKET INTEGRATION ATTRIBUTES OF ROLE AND GOALS OF GLOBAL CORPORATION INTERNATIONAL FINANCIAL  WHAT IS MARKET INTEGRATION? refers to the closeness of association between prices in two or more markets. An increased integration essentially signifies that the markets are working collectively as one broader market. Here, prices are likely to move together and goods, services, or assets are substituted based on the change in prices. HISTORY OF MARKET INTEGRATION  HISTORY The history of global market integration in the 20th century is characterized by significant events that shaped the economic landscape. After World War I, the liberal economic order was disrupted, leading to increased protectionism. Following World War II, large American companies emerged, facilitating a new wave of global market integration. The Bretton Woods agreement in 1944 established a framework for international economic cooperation among allied countries, promoting trade and investment. This period saw the establishment of various international monetary and financial institutions that further encouraged economic interdependence. HISTORY The Agricultural Revolution The first big economic change was Agricultural Revolution. When people learned how to domesticate plants and animals, they realized that it was much more productive than hunter- gatherer societies. This became the new agricultural economy. Farming helped societies build surpluses. This led to major developments like permanent settlements, trade networks, and population growth.  HISTORY Industrial Revolution (1800s) With the rise of industry came new economic tools, like steam engines, manufacturing , and mass production. Factories popped up and changed how work functioned. People began working as wage laborers and then becoming more specialized in their skills. Productivity went up, standards of living rose, and people had access to a wider variety of goods due to mass production. There were economic casualties, especially the workers in factories who worked in Dangerous conditions for low wages. It resulted a greater economic inequality because 19th century industrialists accumulated greater wealth. This is the beginning of labor unions. These organizations of workers sought to improve wages and working conditions through collective action, strikes, and negotiations. Inspired by Marxist principles, labor unions gave way for minimum wag laws, reasonable working hours, and regulations to protect the safety of workers.  HISTORY : CAPITALISM Capitalism is one of the two competing economic models the other one is Socialism. It sprung up around the time of Industrial Revolution, as economic capital became more and more important to the production of goods. Capitalism is a system in which all natural resources and means of production are privately owned. It emphasized profit maximization and competition as the main drivers of efficiency. This means that when one owns business, he needs to outperform his competitors if he is going to succeed. He is incentivized to be more efficient by improving quality of one’s product and reducing its prices. From the idea of Adam Smith in the 1770s, that if one leaves a capitalist economy alone, consumers will regulate things themselves by selecting goods and services that provide the best value. HISTORY : SOCIALISM in a socialist system, the means of production are under collective ownership. It rejects capitalist private property and hand-off approaches. Instead, in socialism, property is owned by the government and allocated to all citizens, not only those with the money to afford it. Socialism emphasizes collective goals, expecting everyone to work for the common good and placing a higher value on meeting everyone’s basic needs than on individual profit. When Karl Marx first wrote about socialism, he viewed it as a stepping stone toward communism, a political and economic system in which all members of a society are socially equal. In practice, this has not played out in countries that have modeled their economies on socialism like Cuba, North Korea, China and the USSR. FACTORS DRIVING MARKET INTEGRATION 1. Policy Changes: Governments often revise trade policies and regulations, making it easier for countries to trade and invest across borders. FACTORS DRIVING MARKET INTEGRATION 2. Converging Customer Needs and Wants: As consumers become more similar in their preferences and desires, markets begin to integrate to meet these unified demands. FACTORS DRIVING MARKET INTEGRATION 3.Technological Advancements: Developments in technology facilitate communication and transportation, making it easier for markets to connect and trade across borders. FACTORS DRIVING MARKET INTEGRATION 4.Human Migration: Movement of people can also lead to greater market integration as migrants bring different skills, demand, and cultural influences. FACTORS DRIVING MARKET INTEGRATION 5. Globalization: The increasing interconnectedness of economies around the world leads to more integrated markets as businesses look to expand their reach beyond domestic borders. TYPES OF MARKET INTEGRATION HORIZONTAL INTEGRATION Horizontal integration is a competitive strategy where a company acquires, merges, or expands its operations with other businesses that operate in the same industry and offer similar products or services. This approach aims to increase the company's market share and reduce competition within that industry.  TYPES OF MARKET INTEGRATION VERTICAL INTEGRATION Vertical integration refers to a business strategy where a company expands its operations by acquiring or merging with different levels of its supply chain. This can involve taking control of upstream suppliers (backward integration) or downstream distributors and retailers (forward integration). The goal is often to enhance efficiency, reduce costs, and increase control over the supply chain. TYPES OF MARKET INTEGRATION CONGLOMERATION INTEGRATIOM refers to the process of merging or acquiring diverse businesses in unrelated industries, allowing a company to diversify its revenue streams and reduce market risk. Market integration, in this context, involves the collaboration or merging of companies to streamline operations and potentially cross-sell products, which can lead to higher profits. These strategies can often protect firms from economic downturns and competitive pressures.  GLOBAL CORPORATION  GLOBAL CORPORATION A GLOBAL CORPORATION, OR GLOBAL COMPANY, IS DERIVED FROM THE TERM ‘GLOBAL’, MEANING ALL AROUND THE WORLD. WHILE IT SEEMS LOGICAL TO THINK A GLOBAL COMPANY OPERATES EVERYWHERE, VERY FEW CAN CLAIM A PRESENCE IN EVERY MAJOR COUNTRY—LIKELY JUST A HANDFUL. THUS, THE DEFINITION SHOULD BE BROADER, ALLOWING MORE COMPANIES TO IDENTIFY AS GLOBAL. A GLOBAL COMPANY IS ANY BUSINESS THAT OPERATES IN AT LEAST ONE COUNTRY OUTSIDE ITS ORIGIN. EXPANDING TO JUST ONE ADDITIONAL COUNTRY IS A SIGNIFICANT ACCOMPLISHMENT. HOWEVER, MERELY SELLING PRODUCTS GLOBALLY FROM ONE COUNTRY DOESN’T QUALIFY A COMPANY AS GLOBAL; MORE IS REQUIRED TO EARN THAT DESIGNATION.  EXAMPLE OF GLOBAL CORPORATION CONSIDER COCA-COLA, WHICH, IN 1886, WAS STRUGGLING TO GET BY. BY WORLD WAR II, COCA-COLA WAS 50 YEARS OLD AND HAD PROUDLY MAINTAINED ITS PRICE AT 5 CENTS, SO AS TO ENABLE MANY PEOPLE TO AFFORD THE BEVERAGE. THE COMPANY WOULD SELL ITS DRINK TO U.S. SOLDIERS STATIONED ALL OVER THE WORLD FOR 5 CENTS A BOTTLE, BUT NO MORE. COCA-COLA NOW SELLS ITS BEVERAGES IN MORE THAN 200 COUNTRIES. NOT ONLY DOES THE COCA-COLA COMPANY SELL ITS POPULAR FIZZY DRINKS SUCH AS COKE, FANTA, AND SPRITE, IT ALSO SELLS SOME 3,800 OTHER PRODUCTS, INCLUDING SOY-BASED BEVERAGES THAT HAVE BEEN ENRICHED WITH VITAMINS. THE COCA- COLA COMPANY ALSO SELLS JUICES, ICED TEAS, BOTTLED WATER, AND A LOT MORE. ATTRIBUTES OF GLOBAL CORPORATION VALUE OPPORTUNITY TO EXPAND: High-growth companies view international markets as untapped markets full of potential. These are the companies that become successful on a higher scale than those that stunt the growth of their company by not seeing the value in this opportunity. ATTRIBUTES OF GLOBAL CORPORATION UNDERSTAND DIFFERENT CULTURES: American companies that have a strong presence internationally often have a founder or leading executive on their team who is from a foreign country or a first-generation American. These executives’ worldly experience helps prioritize the global market and answer any unknowns. Companies without this knowledge should research and understand the different cultures they are tapping into in order to be successful in not only building key relationships that will open up doors down the road, but connecting with the right consumers as well. ATTRIBUTES OF GLOBAL CORPORATION TURBO-CHARGED BY THE INTERNET: COMPANIES THAT INVEST IN THE INTERNET AND PRODUCE WEB-BASED PRODUCTS ARE MORE LIKELY TO GROW GLOBALLY BECAUSE THERE IS LESS MONEY INVOLVED IN THEIR INTERNATIONAL EXPANSION.  ATTRIBUTES OF GLOBAL CORPORATION CAREFULLY CHOSEN INTERNATIONAL PARTNERS: CHOOSING THE RIGHT PARTNERS TO HELP YOU GROW YOUR COMPANY IN OTHER COUNTRIES IS VITAL. WITHOUT THE RIGHT PEOPLE TO VOUCH FOR YOU IN THAT COUNTRY AND BUILD TRUST WITH THE CONSUMERS, BECOMING THE MARKET LEADER COULD BE CLOSE TO IMPOSSIBLE. AGAIN, THIS MEANS COMPANIES MUST BE AWARE OF DIFFERENT CULTURES AND BUSINESS PRACTICES AMONG COUNTRIES IN ORDER TO CONNECT, BE EFFICIENT, AND STAY ON THE SAME PAGE. AN EXAMPLE IS APPLE MADE A STRATEGIC PARTNERSHIP WITH CHINA MOBILE, THE LARGEST WIRELESS NETWORK IN THE WORLD. THIS PARTNERSHIP ENABLED APPLE TO BECOME THE NUMBER ONE SMARTPHONE MAKER IN CHINA AND BEAT OUT THE PREVIOUSLY DOMINATING FIVE LOCAL COMPETITORS. ATTRIBUTES OF GLOBAL CORPORATION MEASURE SUCCESS: WHEN EXPANDING TO OTHER COUNTRIES, IT IS IMPORTANT TO KEEP TRACK OF THE SUCCESS AND MAKE SURE IT IS WORTH THE COMPANY'S RESOURCES. COMPANIES THAT ARE SUCCESSFUL OUTSIDE THEIR HOME BASE ARE THOSE THAT ACT FAST. BY KEEPING TRACK OF THEIR NUMBERS, THEY CAN ACT FAST AND LEARN FROM FAILURES. BY REEVALUATING THE CURRENT STRATEGY AND FINDING NEW WAYS TO INNOVATE, IT BECOMES EASIER TO REAP THE BENEFITS OF THE COMPANY’S SUCCESSES. ATTRIBUTES OF GLOBAL CORPORATION THINK GLOBALLY: THE MOST ESSENTIAL CHARACTERISTIC OF ANY SUCCESSFUL INTERNATIONAL BUSINESS IS IMPLEMENTING A GLOBAL WAY OF THINKING. IF THIS IS THE MAIN THOUGHT PROCESS BEHIND A COMPANY'S DECISIONS, THE REST OF ITS INTERNATIONAL MARKETING STRATEGIES CAN BE IMPLEMENTED WITH EASE. IF COMPANIES SUPPORT AND WELCOME GLOBALIZATION, IT BECOMES INTERTWINED WITH THEIR CULTURE. EMPLOYEES BECOME GLOBALLY-MINDED, ENGINEERS BUILD SOFTWARE WITH OTHER COUNTRIES IN MIND, AND THE REST OF THE TEAM FOLLOWS. GOING GLOBAL IS THE KEY TO ENSURING YOUR COMPANY’S GROWTH AND FUTURE ARE INDOMITABLE. INTERNATIONAL FINANCIAL INSTITUTIONS: are financial institutions that have been established by more than one country and are subject to international laws. Their owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders. The most prominent IFIsare creations of multiple nations, although some bilateral financial institutions exist and are technically IFIs. Many of these are multilateral development banks (MDB) EXAMPLE OF IFI; WORLD BANK The World Bank is an international financial institution headquartered in Washington, D.C., that provides loans and grants to the governments of low- and middle-income countries. It aims to reduce poverty and promote sustainable development through various financial and technical assistance programs. The organization has 189 member countries and is a significant source of financial aid for developing nations ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS IN THE CREATION OF A GLOBAL ECONOMY International financial institutions (IFIs) play several crucial roles in the creation of a global economy: 1. Funding and Investment: IFIs provide financial resources for projects that support economic development, infrastructure, and sustainable practices in developing countries. 2. Coordination of Trade and Investments: They help to manage and coordinate international trade and investment activities, which fosters a stable economic environment and promotes global economic integration. 3. Support for the Private Sector: IFIs actively encourage private sector growth in developing nations by providing funding, expertise, and risk-sharing mechanisms, which enhance entrepreneurial activities and economic diversification. GOAL OF INTERNATIONAL FINANCIAL INSTITUTIONS IN THE CREATION OF A GLOBAL ECONOMY International financial institutions aim to promote global economic stability, facilitate development in member countries, and support sustainable growth. They provide funding through loans, grants, and technical assistance to help countries stabilize their economies, encourage social and economic development, and promote climate resilience.  IT’S TIME FOR FILM WATCHING