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

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 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.