STEN 1000 Chapter Notes - Chapter 3: Offshoring

• School: University of Windsor
• Department: Business
• Course: STEN 1000
• Professor: Rieger

Document Summary

Economies of scale are reductions in the cost base of an organization as a result of greater size, process standardization, or enhanced operational efficiencies. Black market refers to the cash position of a company and its ability to meet its immediate debt and operational obligations. Sovereign debt is debt issued or guaranteed by a national government. Balances of trade is the relationship between imports and exports over a defined period of time. A positive balance (where exports exceed imports) is known as a trade surplus. A negative balance (where imports exceed exports) is known as a trade deficit. Agreements facilitate international trade between companies that is not constrained or regulated by governments, and that is not impacted via the use of tariffs, duties, or other monetary restrictions.