The correct option is Goods traveling from one market to another, leading to price equalization and competition..
Explanation
In the context of globalization, the "Integration of Markets" refers to the linkage of separate national economies into a more cohesive global economic system. This is primarily achieved through the removal of trade barriers, allowing for the free flow of goods, services, and capital across borders.
Detailed Analysis:
- Merging of all stock exchanges into one global exchange. is Incorrect: While globalization connects financial markets, it does not imply the physical or legal merging of all stock exchanges (e.g., NYSE, BSE, LSE) into a single global entity. Distinct national exchanges continue to operate.
- Goods traveling from one market to another, leading to price equalization and competition. is Correct: Integration of markets implies that goods produced in one country can be sold in another. This creates a situation where:
- Consumers have a wider choice of goods (domestic and foreign).
- Producers compete on a global scale.
- Prices of similar goods in different markets tend to equalize (Law of One Price), barring transportation costs and taxes.
- Government control over all markets to ensure uniform pricing. is Incorrect: Globalization generally advocates for liberalization and deregulation, reducing government control over markets rather than increasing it to enforce uniform pricing.
- The dominance of one country's currency in all markets. is Incorrect: While the dominance of a specific currency (like the US Dollar) facilitates international trade, the definition of market integration focuses on the movement of goods and factors of production, not currency hegemony.
Key Takeaway:
Integration of markets transforms isolated national markets into a single global market, leading to increased competition, price convergence, and expanded consumer choice.