This text uses the theory of the firm as the unifying theme to examine the managerial decision process. It introduces a global view into managerial economics to reflect the internationalization of tastes, production and distribution in the globalizing world, and goes on to introduce many topics and managerial tools into the study of managerial economics such as: firm architecture; strategic behaviour; business ethics; electronic commerce; risk management; international economies of scale; the virtual corporation; re-engineering; benchmarking; the learning organization; and the digital factory. The book shows how managerial decisions are actually made with relevant real-world case applications and integrative case studies.