Econ

International movement of factor inputs

• Stock ownership and management
• Company headquarters may be outside of producing country
• Foreign sales represent a high portion of total sales 

• Vertical
• Horizontal
• Conglomerate 

• Market demand
• Trade restrictions
• Investment regulations
• Labor productivity and costs

It basically agress with the comparative advantage principle, however, a great advantage to multinational enterprise is their able to intra trade if they have more than one subsidiary. Subsidiaries are companies owned by another company. They can raise profit by trading with one another. There is less trade regulation. 

Migration increases output and decreases wages where people immigrate. Migration decreases output and increases wages in the country of emigration. The world is changed by an increase in net output. 

Yearly comparison record of a nation's economic transactions to other nations. 

Indicates the net transfer of real resources overseas and it measures how much a nation's exports and imports are part of its gross national product. 

It becomes a net demander (supplier) of funds to the rest of the world. 

Balance of payments is a flow concept where international indebtedness is a stock concept at a certain point in time. 

the institutional framework that individuals, businesses, and financial investors use to purchase and sell foreign exchange. New York, Tokyo, and London. 

Intersection of supply and demand 

The rates of exchange in different parts of the world to be the same. 

By market fundamentals and market expectations.