ECON 208 Chapter Notes - Chapter 7: Nonprofit Organization, Production Function, Variable Cost

• School: McGill University
• Department: Economics
• Course: ECON 208
• Professor: El- Attar Mayssun

Document Summary

Multinational enterprises (mnes)= firms that have operations/locations in more than one country. Uncommon for single proprietorships or ordinary partnerships, common for limited partnerships and very common for large corporations. Mne(cid:859)s (cid:271)usi(cid:374)ess t(cid:396)a(cid:374)sa(cid:272)tio(cid:374)s (cid:373)ake up a la(cid:396)ge a(cid:373)ou(cid:374)t of i(cid:374)te(cid:396)(cid:374)atio(cid:374)al t(cid:396)ade: central role to the current process of globalization. Note: not all production occurs through firms, government agencies provide many public goods a(cid:374)d se(cid:396)(cid:448)i(cid:272)es to (cid:272)itize(cid:374)s (cid:449)ithout di(cid:396)e(cid:272)t (cid:272)ha(cid:396)ges (cid:894)fi(cid:374)a(cid:374)(cid:272)e th(cid:396)ough the go(cid:448)e(cid:396)(cid:374)(cid:373)e(cid:374)t(cid:859)s ta(cid:454) (cid:396)e(cid:448)e(cid:374)ues(cid:895) Financial capital= the money raised by a firm to carry on its business. Basic types of financial capital used in firms are: equity and debt. Real capital= the fi(cid:396)(cid:373)(cid:859)s ph(cid:455)si(cid:272)al assets (cid:894)i. e. fa(cid:272)to(cid:396)ies, (cid:373)a(cid:272)hi(cid:374)e(cid:396)(cid:455), offi(cid:272)es (cid:895) Adds to the value of the firm, raising the market value of the existing shares. Firm creditors= individuals who have lent money in return for some sort of loan agreement or.