Includes bibliographical references.

Economic nature of decision making -- Goals of the firm -- Analysis of value and risk -- Maximization and optimization -- Modelling the decision context -- Consumer bahaviour and demand -- Elasticity and demand specification -- Production in the short run -- Production in the long run -- Costs in the short run -- Costs in the long run -- The competitive environment -- Monopoly -- Monopolistic competition -- Oligopolistic competition -- Extending the models -- Challenges to the theory of the firm -- Ethical dimensions of managerial decisions -- The role of the government -- The firm in society -- Reallocation of resources by government -- International commerce -- Multinationalization of enterprise -- Opportunities in developing economies -- History of international trade -- Absolute advantage theory of international trade -- Comparative advantage theory of international trade -- Heckscher-Ohlin model -- Terms of trade -- Gains from international trade -- Balance of payment -- The foreign exchange market -- Financial market -- Purchasing power parity -- International Monetary Fund -- World Trade Organization.