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Macro and Microeconomic Concepts in a Global Context

Deliverable Length: 1,000–1,600 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 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

In a paragraph each, define these terms. 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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