Chapter 15 - Foreign Trade Flashcards
Import
Goods and services we buy from other countries
Large amounts of capital leave the Irish economy as a result
Export
Irish goods and services we sell to foreign countries
Money comes into the Irish economy
Visible imports
Physical goods that we buy from foreign countries
Cars, iPads
Money leaves the Irish economy
Visible exports
Physical goods we sell to foreign countries
Milk, beef
Money comes into the Irish economy
Invisible import
Services that go from foreign countries to the Irish economy
Ed Sheeran concert in Dublin
Money leaves the Irish economy as a result
Invisible export
Services coming into the Irish economy to foreign countries
Spanish family on holidays in Ireland
Money comes into the Irish economy
Balance of trade
The different between visible exports and visible imports in the Irish economy
A positive balance of trade is good for the Irish economy
Balance of payments
The difference between the total exports and total imports in the Irish economy
A positive balance of payments is good for the Irish economy
Import Substitution
Using Irish goods and services instead of foreign goods and services that are imported
Drinking Irish milk instead of British milk
Foreign Trade
Allows the movement of goods, services, capital and people between all members of the European Union
Euro zone
A monetary union between 19 countries that use the same currency
The Euro
The single currency used by all countries in the euro zone
Economies of Scale
Where a producer increases the number of products produced which allows a decrease in the cost of making an individual unit.
The European Union
An economic and political agreement between 28 member countries which work together to achieve peace and prosperity while recognising cultural differences
Foreign trade
The transfer of goods and services between countries
Large amounts of capital flow in and out of the economy as a result
