global managerial economics

1,000-1,400 words. 

Before making a decision about entering into the global market, business owners must familiarize themselves with some macro- and microeconomic concepts:

-The World Bank and International Monetary Fund

-Imports and exports as part of Gross Domestic Product (GDP)

-Multinational corporations

-Foreign direct investment and capital flows

-Foreign exchange market and exchange rates

-Labor theory of value

-Marginal rate of transformation

-Gains from trade, comparative advantage

-Economies of scale

>First, define these terms in your own words as if explaining them to a business owner (cite to support/note your source). Then, discuss how these terms individually apply to both supply and demand and to a business owner who is contemplating expanding internationally.

 

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