MGM102H5 Study Guide - Midterm Guide: Government Debt, Fiscal Policy, Monetary Policy
Document Summary
Ofshoring: transferring a component of a irm"s business system to another country for the purpose of reducing costs, improving eiciency or efectiveness, or developing a competitive advantage. Outsourcing: contracting out a portion of, or a component of, a irm"s business system for the purpose of reducing costs, improving eiciency or efectiveness, acquiring expertise, or developing a competitive advantage. Economies of scale: reductions in the cost base of an organization as a result of greater size, process standardization, or enhanced operational eiciencies. Liquidity: 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: long-term stability of the company and its ability to meet its ongoing debt and operational obligations, and to fund future growth. Credit facilities: describes the variety of loans that could be ofered to a business or a country.
