Risk spreading
What Risk spreading means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Risk spreading
Check what you remember
Read the wording for your board, then hide it and explain Risk spreading in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A pull factor where operating in multiple countries protects overall revenue through stable or growing sales in other international markets when one market suffers a downturn or change in consumer tastes.
Topics that use Risk spreading
- Conditions that prompt trade (Pearson Edexcel A-Level)
Related terms
- Capacity utilisation
- Domestic competition
- Economies of scale
- Extension strategies
- Fixed costs
- Global supply chains
- International competitiveness
- International trade
Using Risk spreading in the exam
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