Combine the economies of many countries, it is a leading feature of the modern world.This process, which occurs objectively and at the same time it is guided consciously.There is a trend towards convergence, merging, adapting to each other economic systems of several nations.
economic integration in the world today takes place as if on two levels.On the one hand, economic life is becoming more international.And on the other - a convergence between the economies of several countries at the regional level.On this basis we can determine these processes and related forms of international integration:
- worldwide generated by the ongoing globalization process;
- regional, traditional.In some countries, it has started to develop in the second half of the 20th century.
In addition, to distinguish between the integration taking place at the enterprise level and at the state level.
In the first case - it chastnokorporativny type.It combines the assets and capital of several organizations.
Integration institutional type - is the interpenetration of national reproduction processes, their splicing.In this case, the converging political and social institutions of those states that are united.Often, this type of integration is the result of decisions taken by the leaders of the countries.Its form depends on how the factors of production can freely move within the groups.It is a zone of free trade, currency, customs and economic union and a single market.
Chastnokorporativnaya integration also comes in two forms:
- vertical;
- horizontal.
first brings together companies that are involved in various fields, but they are bound together successive stages of production and circulation.
Horizontal integration brings together organizations that operate in the same sphere, in the same market.Thus they seek to win major competitors.
Horizontal integration combining several into one huge corporations, entails several consequences that are important to the welfare of the whole country.
1. The growth of the power of large firms in the market.The number of independent companies manufacturing is getting smaller.A small number of traders allows to influence the level of prices for goods.This market could be called kvazikonkurentnym as the increased concentration of sellers still does not protect against potential rivals.This barrier is very low.Therefore, as it were united sellers do not want to raise prices, they can not do it.After the first notable increase market flooded competitors.
2. There are synergistic effects.Horizontal integration enables firms to reduce some costs.This is due to synergistic effects.They are expressed in the increase in the results of companies, merged into one, in comparison with results achieved by firms scattered.These effects relate to investment, finance and operations.
3. The occurrence of transaction costs.They take place in the case of partial integration when the property in the form of alliances or agreements are not fully merged.Subject to its interests, one of the partners do not trust each altogether.
4. The weakening of the power of consumers and suppliers in the market.When the concentration of those offering goods is too high, the firms involved in the same industry, have to influence them so that they did not raise prices for the resources used.Horizontal integration can help resolve this issue.To reduce prices and produce a greater volume of production, enterprise-suppliers should become stronger.Thus their high concentration will be equal to the concentration on the consumer market, which, in turn, stabilizes the price.
