Globalization And Vertical Integration

Globalization refers to the elimination of obstructions to free trade and the addition to the national economies. Today, normally, large corporations generate around half of their sales revenue overseas. Basically it refers to the growing combinations of national economies of the advanced developed countries of the world.
The production of goods and services has become much globalized so as to upsurge the economy. As big MNC companies have emerged the economies of the world have become increasingly inter-reliant. These firms find to purchase components and trace production where costs are lower to create higher margins.
Economic Integration
Now first we will discuss what economic integration is. Basically it is the amalgamation of economic

Providers realize their long-term survival will rest on becoming part of a larger organization, This can be possible by either joining an current network or creating a new one, because the current organization’s suppliers and payers are becoming better and stronger. Organizations who are standing on their own simply do not have much knowledge, good resources and power of the market to survive on their own.
Nearly all the larger entities created over the past few years have been created through horizontal integration — formal affiliation with other economic units producing the same goods & services. Through economies of scale Horizontal networks of hospitals can lower their costs, but they do not essentially respond to the growing number of noneconomic threats such as scientific and technological growth; purchasers' growing demands for value; and consumers' needs for affordability, convenience and informed choice.
Solving all these problems requires bringing together parties on the supply and demand sides of the marketplace — that is, vertical integration of all key