an external cost or external benefit is also known as
Externality Two British economists are credited with having initiated the formal study of externalities, or "spillover effects": Henry Sidgwick (1838–1900) is credited with first articulating, and Arthur C. Pigou (1877–1959) is credited with formalizing the concept of externalities.[5]
Supply chain surplus By aggregating capacity, inventory, inbound or outbound transportation, warehousing, procurement, information, receivables to higher level, outsourcing to a third party can provide a sustainable growth of the surplus to the firm. Sometimes, a growth in surplus may also occur due to lower cost, higher quality, specialization or learning of the third party. A firm gains most from outsourcing to a third party if needs are small, uncertainty is high and other firms are also sourcing from the same third party.[10]