Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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Chapter 20, Problem 1AA
To determine

To Discuss: The importance of global integration through various terms.

Expert Solution & Answer
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Explanation of Solution

The term global integration refers to the situation where the marketing process is duly controlled and formulated globally, thus in simple terms expanding the business globally for more growth, and for more profits earning. Thus global integration occurs when there is financial growth in the economy and as well as for individuals.

Foreign Direct Investment:

Foreign direct investment helps the developing or under developing country to increase its circular flow of money in the economy, thus it also helps in increasing the funds, increase in the interest rates and banks rates and thus also increases the new technology in the country.

Under this foreign direct investment, it also helps in the increase in the employment level also and thus decreases unemployment level, as its employment increases, thus it helps in an increase in the job level and literacy rate.

Foreign Affiliates:

The term foreign affiliates are the main integration under the source of foreign direct investment as providing various policies in terms to expand and grow the demand for their products globally and thus investing in new types of ventures helps the foreign affiliates to increases the employment policies.

There are two foreign affiliates i.e. inward and outward foreign affiliates. The inward foreign affiliates refer to the situation where the control of the economy is internally and the outward affiliates refer to where the external factors control the economy.

Multinational:

The global integration as multinational is that the multinational companies’ controls more than one work globally and thus cover most part of the economy, as MNC’S plays a crucial role in the development of the economic structure. Thus the global integration values the overall organization of MNC’s.

Telecommunication:

Telecommunication is an important factor under global integration, as for a business to expand globally a good communication is required, as it helps the growth of industrialization, developing the new technology factors.

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