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Global managerial economics

1000-1400 words 

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

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  • 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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