One of the results of tranportation improvements was the integration of international markets.
Tranportation improvements decreased transportation costs for businesses which will encounter less economic barriers than before and will be more likely willing to enter in international trade activities. Markets have become larger in geographical terms, and therefore integration of domestic markets has taken place, leading to the creation of large international markets.
This is why it is said that the reduction of tranportation and communication costs has made the world smaller .
