COMM 103 Chapter Notes - Chapter 3: Outsourcing, Government Debt, Offshoring

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gregory Libitz

Document Summary

Offshoring: is transferring a component (operations, service, support) of a firm"s business system to another country for the purpose of reducing costs, improving efficiency or effectiveness, or developing a competitive advantage. Economies of scale: are reductions in the cost base of an organization as a result of greater size, process standardization, or enhanced operational efficiencies. Liquidity: refers to the cash position of a company and its ability to meet its immediate debt and operational obligations. It also refers to the ability of the company to convert existing assets to cash in order to meet such obligations. Solvency: refers to the long term stability of the company and its ability to meet its ongoing debt and operational obligations, and to fund future growth. Credit facilities: is a general term that describes the variety of loans that could be offered to a business or country. Sovereign debt: is debt issued or guaranteed by a national government.