Ch 32- Globalisation

Question 1

What are visible exports?
Give an example

Answer 1

Physical goods sold to other countries
eg meat, dairy

Question 2

What are visible imports?
Give an example

Answer 2

Physical goods bought from other countries
eg oil, petrol

Question 3

What are invisible exports?
Give an example

Answer 3

Services sold to other countries
eg foreign tourists visiting ireland

Question 4

What are invisible imports?
Give an example

Answer 4

Services Ireland buys from other countries
eg Irish holidaying abroad

Question 5

What is international trade?

Answer 5

Selling and buying goods between countires

Question 6

Why export/ Benefits of international trade to the economy

Answer 6

-To earn money for imports
-Surplus production, e.g. beef
-Creates employment
-Creates demand for Irish products abroad eg Kerrygold butter

Question 7

Why import?

Answer 7

-Unsuitable climate, e.g. oranges, bananas, tea
-Raw materials for production eg steel, timber
-Lack of non-renewable resources eg oil, coal
-Choice of products
- Foreign counties may have cheaper prices

Question 8

What are the benefits of international trade to Irish businesses?

Answer 8

-Increase sales
-Spreads risk, e.g. not relying on just the Irish market
-Raw materials not produced in Ireland, e.g. oil
-Lower costs, e.g. economies of scale

Question 9

What is economies of scale?

Answer 9

When companies produce in bulk, it lowers the unit cost of production

Question 10

What are the difficulties of international trade?

Answer 10

-Transport costs, e.g. fuel
-Language barriers, e.g. packaging
-Exchange rate
-Cultural differences, e.g. some countries don’t eat beef

Question 11

Globalisation

Answer 11

The way the world is becoming more interconnected as a result of increased trade