PHASE1IP 8 ECON310-1403A-01 Quesadra D. Goodrum Individual Project Phase 1 Colorado Technical University Online Professor: David Bernotas 07/14/2014 Table of Contents Introduction 2 The World Bank and International Monetary Fund 2 Imports and exports as part of GDP 3 Multinational corporations 3 Foreign direct investment and capital flows 4 Foreign exchange market and exchange rates 5 Labor theory of value 5 Marginal rate of transformation 6 Gains from trade, comparative advantage 6 Economies of scale 6 Conclusion 7 References 8 Introduction Myriads of terms and concepts come to mind and all need to be taken into consideration when contemplating entry into the world market. Entering into the world market can prove to be very beneficial to your business and industry. The term world market is on a major scale and when looking at it through an aspect of both macroeconomics and microeconomics. In this meeting I’ll discuss some key terms and concepts you’ll want to familiarize yourself with before the end of this meeting. I will touch on the following terms during the course of this meeting: The World Bank and International Monetary Fund, Imports and exports as part of, 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, and Economies of scale.The World Bank and International Monetary Fund The Word bank was created in 1944 after World War II. It is an international financial institution. The primary goal for the bank is to help provide financial relief to countries that are devastated by the impact of the war. Here are some lesser known facts about the word bank as time passed its goals and functions changed with the time the as everything does. The bank began to provide loans to developing countries for use of building establishing, ad or improving capital programs. “The World Bank is a component of the World Bank Group, and a member of the United Nations Development Group (Investopedia, 2014).” The economy has drastically changed since then in today’s market; the bank serves a purpose much bigger and much grander than that of the past. The International Monetary Fund is a relief aid made to help and assist today’s World Bank in mustering up global growth. In addition to this it also helps in aiding third world countries achieve economic stability. The main function of the world back in today’s economy is acting as an international organization that lends an aided hand and helps fight against poverty. You may ask in what ways does The Worlds Bank helps fights against poverty. It helps by offering developmental assistance to middle and poor-income countries. The bank in addition to the fight against poverty also gives out loans, offering advice, and training in both the private sector as well as the public sector. One can say the World Banks slogan is helping others help themselves.