Unit 3 Activity 2
Integration occurs when prices among different location or related goods follow similar patern over a long period of time. Groups of prices often moves proportionally to each other and when this relation is very clear among the different markets it is said the the markets are integrated. Thus market integration is an indicator that explain how much different market are related to each other. Market Integration The nineteenth century saw substantial advances in international market integration, and the creation of a truly world economy. Technological advance was critical in this. The railroad locomotive and the marine steam engine revolutionized world transport from the 1830s onwards. Steamships connected the world's ports to each other, and from the ports the railroads ran inland, creating a new and faster world transport network. Freight rates fell, and goods could be carried across the world to ever more distant markets and still be cheaper in those faraway places than the sam