Question

In: Economics

Discuss the relation between the types of integration and market structure, considering the current merger between...

Discuss the relation between the types of integration and market structure, considering the current merger between Ghana Home Loans and First National Bank of Ghana in the mortgage industry.

Solutions

Expert Solution

1. Integration:- Integration is an arrangement that typically includes the elimination of trafe barries and balancing of monetary and fiscal policies. It main aims to reduce costs for both consumers and producers.

2. Market structure means the nature and degree of compitition in the market for products and services. In market structure, there are number of firms producing in the market and structure is determined the competition.

First National Bank Ghana acquires GHL Bank:- In date 5th May 2020 First National Bank has acquired 100% of GHL Bank effectively. First National Bank Ghana is largest financial institution group and GHL Bank is leading provider of mortgage financing, so customers will benefit from an even wider range of products and services.

So we can say that integration and market structure are two main factors for current merger between Ghana Home Loans and First National Bank of Ghana.


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