9609 · 6.1.6
International flashcards
Revision flashcards for Cambridge 9609 International (syllabus 6.1.6). Flip, recall, then mark a real past-paper question.
Card
Exporting advantage?
Lower risk/cost than FDI; test market before heavy investment.
Card
FDI?
Foreign direct investment — factories, subsidiaries abroad; control but high commitment.
Card
Joint venture?
Partner with local firm — shares risk, local knowledge, possible IP risk.
Card
Cultural adaptation?
Modify product, packaging, promotion for local tastes and values.
Card
Exchange rate risk?
Revenue in foreign currency may fall when converted home (6.1.2).
Card
Link to 6.2?
Market development / internationalisation as Ansoff strategy.
Card
What is Globalisation?
The growing integration and interdependence of the world's economies, creating a single international market. It is characterised by increased trade, capital flows, and movement of labour.
Card
Define Foreign Direct Investment (FDI).
An investment made by a company into establishing business operations or acquiring substantial assets in another country. It is a high-commitment, high-risk strategy for market entry.
Card
What is a tariff?
A tax imposed by a government on imported goods or services. It is a form of trade protectionism designed to make imports more expensive and domestic goods more competitive.
Card
Explain the concept of 'glocalisation'.
A business strategy that involves adapting globally marketed products and services to the specific culture and preferences of local markets. It combines a global outlook with local action.
Card
What is the key difference between direct and indirect exporting?
Direct exporting involves the business managing its own export activities. Indirect exporting involves using an intermediary, such as an export agent or trading house, to handle the process.