Chapter 39+40

Question 1

Define the term international trade

Answer 1

International trade is the buying (importing) and selling (exporting) of goods and services between different countries.

Question 2

Define the term globalisation

Answer 2

Means that the economics and societies of different countries are integrated into one singular global economy and society.eg coco cola

Question 3

Why are mutational companies in Ireland

Answer 3

Located in the EU
Low corporation tax
English speaking
Educated workforce

Question 4

Benefits of importing

Answer 4

Raw materials eg oil
Climate eg oranges
Produce eg cars
Technology eg online

Question 5

Benefits of exporting

Answer 5

Employment in spin-off enterprises
Taxation-revenue for the government

Question 6

Challenges of trade

Answer 6

Transport
Competition
Low wage economics
Production

Question 7

Define the term importing

Answer 7

Importing is buying goods or services from other countries. When this happens, money leaves the country.

Question 8

Define the term visible imports

Answer 8

Visible imports are the physical goods that Ireland buys from other countries, for example cars, oil, coal and fruit.

Question 9

Define the term invisible imports

Answer 9

Invisible imports are services that Ireland buys from other countries, for example Irish people going on holiday abroad, foreign bands performing in Ireland, Irish students going abroad on school tours, giving a foreign firm the contract to build our roads and Irish people buying services such as insurance and transport from foreign businesses.

Question 10

Define the term exporting

Answer 10

Exporting is selling goods or services to other countries. In the case of all exports, money comes into the country.

Question 11

Define the term visible exports

Answer 11

Visible exports are the physical products or goods that Ireland sells to other countries, for example meat, dairy products, live animals, ICT equipment, pharmaceuticals.

Question 12

Define the term visible exports

Answer 12

Visible exports are the physical products or goods that Ireland sells to other countries, for example meat, dairy products, live animals, ICT equipment, pharmaceuticals.

Question 13

Define the term invisible exports

Answer 13

Invisible exports are services that Ireland sells to other countries, for example Spanish students coming to Ireland to learn English and an Irish band performing in another country.

Question 14

Define the term balance of trade

Answer 14

The balance of trade is the difference between visible exports and visible imports

Question 15

What is the balance of payments

Answer 15

The balance of payments is the difference between total exports (visible and invisible) and total imports (visible and invisible). It is the total exports minus the total imports

Question 16

Define the term domestic trade

Answer 16

Domestic trade involves the exchange of goods and services in a country. E.g.you buy Brennan’s bread from the local shop.

Question 17

Define the term international trade

Answer 17

International trade however is concerned with selling goods and services to, and buying goods and service from other countries. It involves exporting and importing.

Question 18

Define the term exporting

Answer 18

When Irish businesses sell products and services to foreign countries, this is called exporting. The good/service leaves a country causing money to come in. Eg beef and Guinness

Question 19

Define the term importing

Answer 19

When Irish businesses and people buy products and services from foreign countries, this is called importing. The good/service comes into a country causing money to go out. Eg cars and phones

Question 20

Why do we import

Answer 20

We as a country import for many reasons such as having unsuitable climate to produce certain goods, a lack of skills, or a lack of natural resources. Ireland imports 34% of trade with the UK.

Question 21

Define the term visible exports

Answer 21

Visible exports are goods produced In Ireland and sold to international customers. This causes money to come intoIreland. We can see them and so they are tangible. Remember: Exports are sold abroad meaning we get paid for producing them. Example- Jameson selling whiskey to U.S.A

Question 22

Define the term visible imports

Answer 22

Visible Imports are goods produced by a business in another country and bought by irish consumers/businesses. We can see them and so they are tangible. This will cause money to leave our country. Imports are brought into a country meaning we have to buy them. Examples of visible imports would be German/Japanese Cars, an Irish shop buying oranges from abroad.