The Growing
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Figure 2.
Integration of Markets
International markets are becoming integrated at several different levels (Bettis and Hitt 1995; Dicken 1998; Dunning 1998). Most broadly, integration is taking place at the macroeconomic level. The economies of many countries, particularly within regional trading blocs, are becoming more closely intertwined. Visible manifestations of this are cross-border flows of goods and services coupled with the growth of organizational networks spanning national boundaries, as well as air traffic, mail flows, increased tourist and business travel, and migration of people (Douglas and Craig 1996). Geographic proximity is a driving factor, because proximate markets are more likely to be integrated than distant markets.
Market infrastructures are also becoming more interlinked and integrated as a result of advances in communications technology, satellite links, growth of company intranets, the Internet, and improvements in physical communication networks and linkages. Regional expansion of distribution networks at both the wholesale and retail levels and the global expansion of service organizations, such as advertising agencies, research agencies, and financial institutions, all serve to reinforce market integration.