Familiarize-foreign direct investment and capital flows


Assignment:

Deliverable Length: 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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Microeconomics: Familiarize-foreign direct investment and capital flows
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