ch35

Question 1

open economy

Answer 1

ppl and businesses can trade goods n services freely w other countries eg ireland

Question 2

imports and exports

Answer 2

Imports are the goods and services bought from other countries (e.g. foreign-made cars) Exports are the goods and services sold to other countries (e.g. Irish beef).

Question 3

VISIBLE AND INVISIBLE TRADE

Answer 3

Thetradeofgoods(e.g.electronics,foodand vehicles) is known as visible trade.
The trade of services (e.g. tourism, banking and transport) is known as invisible trade

Question 4

BALANCE OF TRADE AND BALANCE OF PAYMENTS

Answer 4

When goods and services are imported, money is leaving the Irish economy
When goods and services are exported, money is coming into the Irish economy

Question 5

BALANCE OF TRADE

Answer 5

The difference between the value of a country’s visible imports and visible exports is called balance of trade.
Balanceoftradeiscalculatedasfollows: Balance of trade = visible exports – visible imports