Micro and macro concepts 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: ...

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