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
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.