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History of 20th Century Market Integration

The document discusses the history of market integration from the Agricultural, Industrial, and Information Revolutions. It also outlines different economic models like capitalism and socialism. Finally, it defines different types of market integration including horizontal integration, vertical integration, and conglomeration.

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Valerie Marasigan
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254 views7 pages

History of 20th Century Market Integration

The document discusses the history of market integration from the Agricultural, Industrial, and Information Revolutions. It also outlines different economic models like capitalism and socialism. Finally, it defines different types of market integration including horizontal integration, vertical integration, and conglomeration.

Uploaded by

Valerie Marasigan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Market Integration

At the end of the topic, the students should be able to:


1. Articulate a stance on global economic integration;
2. Narrate a short history of global market integration in the twentieth century;
and
3. Identify the attributes of global corporations
The Agricultural Revolution, Industrial
Revolution and Information Revolution
 Agricultural Revolution -1st Major Economic Change

 Industrial Revolution -2nd Major Economic Revolution

 Information Revolution- 3rd Major Economic Revolution


Rise of competing economic models

Capitalism – is a system in which all natural resources and means of production


are privately owned. It emphasizes profit maximization and competition as the
main drivers of efficiency.

Socialism – The means of production are under collective ownership. Property is


owned by the government and allocated to all citizens, not only those with the
money to afford it. (Emphasizes collective goals, expecting everyone to work for
the common good and placing a higher value in meeting everyone`s basic needs
than on individual profit)
Communism- A Political and economic system in which all member of a society are
socially equal.
 Market integration is a process which refers to the expansion of firms by
consolidating additional marketing functions and activities under a single
management.
Three basic kinds of Market Integration; horizontal integration; vertical
integration; and conglomeration.

 Horizontal integration is a type of integration, some marketing agencies


combine to form a union to reduce their effective number and the extent of
actual competition in the market.

 Vertical integration occurs when a firm performs more than one activity in
the sequence of the marketing process. It is linking together of two or more
functions in the marketing process within a single firm or under a single
ownership.
Two Kinds of Vertical Integration

Forward integration- is a strategy that companies use to expand by purchasing


and controlling the direct distribution or supply of a company's products.

Backward integration is when a company expands backward on the production


path into manufacturing, meaning a retailer buys the manufacturer of their
product.
 Conglomeration- A combination of agencies or activities not directly related
to each other may operate under a unified management.

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