Chapter 39+40 Flashcards
Define the term international trade
International trade is the buying (importing) and selling (exporting) of goods and services between different countries.
Define the term globalisation
Means that the economics and societies of different countries are integrated into one singular global economy and society.eg coco cola
Why are mutational companies in Ireland
Located in the EU
Low corporation tax
English speaking
Educated workforce
Benefits of importing
Raw materials eg oil
Climate eg oranges
Produce eg cars
Technology eg online
Benefits of exporting
Employment in spin-off enterprises
Taxation-revenue for the government
Challenges of trade
Transport
Competition
Low wage economics
Production
Define the term importing
Importing is buying goods or services from other countries. When this happens, money leaves the country.
Define the term visible imports
Visible imports are the physical goods that Ireland buys from other countries, for example cars, oil, coal and fruit.
Define the term invisible imports
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.
Define the term exporting
Exporting is selling goods or services to other countries. In the case of all exports, money comes into the country.
Define the term visible exports
Visible exports are the physical products or goods that Ireland sells to other countries, for example meat, dairy products, live animals, ICT equipment, pharmaceuticals.
Define the term visible exports
Visible exports are the physical products or goods that Ireland sells to other countries, for example meat, dairy products, live animals, ICT equipment, pharmaceuticals.
Define the term invisible exports
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.
Define the term balance of trade
The balance of trade is the difference between visible exports and visible imports
What is the balance of payments
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
Define the term domestic trade
Domestic trade involves the exchange of goods and services in a country. E.g.you buy Brennan’s bread from the local shop.
Define the term international trade
International trade however is concerned with selling goods and services to, and buying goods and service from other countries. It involves exporting and importing.
Define the term exporting
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
Define the term importing
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
Why do we import
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.
Define the term visible exports
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
Define the term visible imports
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.
