The document discusses market integration, emphasizing its role in influencing the prices of related goods and services within a geographical location. It explains the Bretton Woods system established post-World War II, highlighting its features such as being US dollar-based, having an adjustable peg, and tight capital controls. Additionally, it outlines the roles of major international institutions like the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB) in promoting global economic stability and development.

1. MARKET INTEGRATION

2. * What can you see in these pictures? Did you experience these?
* What is the current state of the market in your municipality?

3. MARKET INTEGRATION
- a term that is used to identify a phenomenon in
which markets of goods and services that are
somehow related to one another being to
experience similar patterns of increase or decrease
in terms of the prices of those products
- a situation in which the prices of related goods
and services sold in a defined geographical
location also begin to move in some sort of similar
pattern to one another

4. THE BRETTON WOODS SYSTEM
-established after WW II
Bretton Woods - a small tourist spot in the
mountains of New Hampshire, USA
-There, the delegates gathered to design a new
global economic system.

5. FEATURES OF THE BRETTON WOODS SYSTEM
1 •
It
was
a
US
dollar-based
system.
2 •
It
was
an
adjustable
peg
system.
3 •
Capital
control
was
tight
4 •
Macroeconomic
performance
was
good

6. The features of the Bretton Woods system are as follows:
US dollar-based system
Officially, the Bretton Woods system was a gold-based
system which treated all countries symmetrically, and
the IMF was charged with the responsibility to manage
this system.
An adjustable peg system
This means that exchange rates were normally fixed
but permitted to be adjusted infrequently under
certain conditions.

7. Capital control was tight
This was a big difference from the Classical Gold
Standard of 1879-1914, when there was free
capital mobility. Although the US and Germany
had relatively less capital-account regulations,
other countries imposed severe exchange controls.
Macroeconomic performance was good
In particular, global price stability and high growth
were simultaneously achieved under deepening
trade liberalization.

8. INTERNATIONAL INSTITUTIONS in the CREATION of
GLOBAL ECONOMY
World Trade Organization (WTO)
-a multilateral organization headquartered in
Geneva, Switzerland with 152 member nations as of
2008
-the only global international organization dealing
with the rules of trade between nations
-The goal is to ensure that trade flows as smoothly,
predictably and freely as possible.

9. World Trade Organization (WTO)
-It operates a global system of trade rules, acts as
a forum for negotiating trade agreements, settles
trade disputes between its members and it
supports the needs of developing countries.
WTO operations are premised on the neoliberal
idea that all nations benefit from free trade and
open trade and it is dedicated to reducing and
ultimately eliminating barriers to such trade.

10. International Monetary Fund (IMF)
- created on 1945 which is based in Washington,
D.C.
-governed by and accountable to the 189 countries
that make up its near-global membership
-tracks global economic trends and performance,
alerts its member countries when it sees problems on
the horizon, provides a forum for policy dialogue,
and passes on know-how to governments on how to
tackle economic difficulties

11. International Monetary Fund (IMF)
-focuses on the functioning of the international
monetary system, and on promoting sound
macroeconomic policies as a precondition for
sustained economic growth
-provides policy advice and financing to members
in economic difficulties and also works with
developing nations to help them achieve
macroeconomic stability and reduce poverty

12. World Bank (WB)
-set up in 1944 as the International Bank for
Reconstruction and Development to act as facilitator of
post-World War II reconstruction and development
-created to help restore and sustain the benefits of global
integration, by promoting international economic
cooperation
- one of the world’s largest sources of funding and
knowledge to support governments of member countries
in their efforts to invest in schools and health centers,
provide water and electricity, fight disease and protect
the environment

13. World Bank (WB)
-not a ‘bank’ in the common sense. The World
Bank is an international organization owned by the
184 countries both developed and developing
-Its goal is to reduce poverty and to improve the
living standards of the people in low and middle-
income countries.