Economic costs = explicit + implicit costs. Economic profit = revenue - economic costs. Accounting profit = revenue - explicit costs

Short run: at leat one resource fixed, others variable long run: all resources are variable

Economies of scale due to: * labour/management specialisation * access to more efficient equipment * better use of by-products

Diseconomies of scale due to managing complexities of large scale production.

Maquiladora: foreign manufacurers in Mexico who receive special priveleges for using local labour.

International market entry global sourcing im/ex licensing franchising Direct investment joint ventures wholly owned subsidiary

Multinational corporation ethical issues: *corruption *sweatshops *child labour *sustainable development

Ethnocentrism: tending to view your own culture as superior to others.