COMM 200 Chapter Notes - Chapter 3: Black Market Activities, Government Debt, Stamen

• School: Queen's University
• Department: Commerce
• Course: COMM 200
• Professor: Darren Mc Caugherty

Document Summary

Companies look to move beyond their domestic markets for a combination of reasons. These can be categorized around the following: new market opportunities, cost reduction opportunity, resource base control, closeness to markets, economies of scale. Offshoring is transferring a component of a firm"s business system to anther country for the purpose of reducing costs, improving efficiency or effectiveness, or developing a competitive advantage. Organizations seek to develop, manage, and leverage global production and distribution networks to create competitive advantages. Economies of scale are reductions in the cost base of an organization as a result of greater size, process standardization, or enhanced operational efficiencies. Responsible sovereign debt management refers to the obligation that government leaders have to manage their economies in a fiscally prudent manner: sovereign debt is debt issued or guaranteed by a national government. Global re-balancing: emerging economies will gain in influence and growth, developed economies will see reductions in influence and growth.