write a note on market integration
Answers
Market integration occurs when prices among different locations or related goods follow similar patterns over a long period of time. Groups of good often move proportionally to each other and when this relation is very clear among different markets it is said that the markets are integrated.
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Answer: Market integration refers to how easily 2 or more markets can trade with each other. In case of high integration, it means that there is low barriers on trade as well as prices are similar in the two markets. In case of low integration, high barriers to trade as well prices fluctuate between these markets. Foreign trade helps the integration of markets because it reduces barriers to trade and increases fluidity between markets. As foreign trade increases, the price will go down until it reaches the price which is in the original market from where the trade has been made.
Explanation:when prices or related goods follow similar patterns over a long period of time or Groups of good often move proportionally to each other and when this relation is very clear among different markets it is said that the markets are integrated. Thus market integration is an indicator that explains how much different markets are related to each other.