9609 · 6.1.1
Political and legal flashcards
Revision flashcards for Cambridge 9609 Political and legal (syllabus 6.1.1). Flip, recall, then mark a real past-paper question.
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Political stability impact?
Stable government → confidence to invest; instability → delay projects, currency risk.
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Employment law examples?
Minimum wage, working time limits, anti-discrimination, health and safety duties.
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Consumer protection?
Product safety standards, accurate advertising, refund rights.
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Tariffs?
Tax on imports — raises cost of imported inputs or products.
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Compliance as advantage?
High standards may deter smaller rivals; build trust with customers.
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Link to 6.2 strategy?
PESTLE informs strategic choice — enter/avoid markets based on legal risk.
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What is a tariff?
A tax or duty imposed by a government on imported goods. This increases the price of imported products for domestic consumers, thereby protecting domestic industries from foreign competition.
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Define 'intellectual property'.
Intangible creations of the mind that are protected by law. This includes inventions (patents), literary and artistic works (copyrights), and brand names and logos (trademarks).
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What is the primary risk of political instability for a multinational corporation?
Increased uncertainty, which can lead to supply chain disruption, currency volatility, difficulties in long-term planning, and the potential risk of expropriation (government seizure of private assets).
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Distinguish between fiscal and monetary policy.
Fiscal policy refers to the government's use of taxation and public spending to influence the economy. Monetary policy is controlled by a central bank and involves managing interest rates and the money supply.
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What is a 'trade bloc'?
A group of countries that have an agreement to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves. Examples include the European Union (EU) and the United States-Mexico-Canada Agreement (USMCA).