chapter 3

Question 1

offshoring

Answer 1

moving part of a firms business system out of country

Question 2

outsourcing

Answer 2

contracting out a part of a firms business system to another country

Question 3

economies of scale

Answer 3

lowering in cost base due to an organizations greater size, process standardization, or enhanced operational efficiencies

Question 4

liquidity

Answer 4

csh position of a company and its ability to pay immediate dept
ability to turn assets into cash

Question 5

solvency

Answer 5

long term stability of the company and its ability to pay ongoing dept and future growth

Question 6

credit facilities

Answer 6

general term that describes the variety of loans

Question 7

black market

Answer 7

illegal market

Question 8

sovereign dept

Answer 8

dept issued or guaranteed by a national government

Question 9

balance of trade

Answer 9

relationship between impost and exports over a certain time

Question 10

trade surplus

Answer 10

more exports than imports

Question 11

trade deficit

Answer 11

more imports than exports

Question 12

current account

Answer 12

countries net trade and net earnings from interest and investments and net transfer payments

Question 13

free trade agreements

Answer 13

to not be contained by government - not impacted by tariffs duties, or monetary restrictions