International Trade

Question 1

international trade

Answer 1

the exchange of goods and services between countries

importing and exporting

Question 2

irelands main imports

Answer 2

machinery
cars
chemicals
foods
oil

Question 3

irelands main exports

Answer 3

pharmaceutical products
food and drink
optical and photo apparatus
electronics
perfumes, cosmetics, toiletries

Question 4

reasons for imports

Answer 4

access to natural resources we lack
doesnt have climate to grow certain products
may not have the skills to make certain products eg cars
imports give more choice + standard of living

Question 5

reasons for exports

Answer 5

irish market is small
achieve economies of scale
diversify and spread risk

Question 6

balance of trade

Answer 6

refers to the difference between the value of the visible exports, physical goods produced by businesses based in Ireland, and sold to foreign customers abroad, and the value of visible imports, physical goods that are purchased by irish customers from businesses based in foreign locations
visible exports - visible imports

Question 7

how to overcome balance of trade deficit

Answer 7

increase exports
reduce imports
use more irish raw materials

Question 8

balance of payments

Answer 8

measures the difference between total exports and total imports
difference between the total amount of money that comes into a country as a direct result of exporting and the total amount of money leaving a country as a result of importing
total exports - total imports

Question 9

importance of international trade to Ireland

business

Answer 9

larger market
lower costs - economies of scale
growth of TNCs
raw materials

Question 10

importance of international trade to Ireland

consumer

Answer 10

wider variety of goods
better quality goods - better skilled workers
lower prices - more competition
infrastructure - requires good transport and communication links

Question 11

importance of international trade to Ireland

economy

Answer 11

foreign exchange
balance of payments - surplus
higher employment
international recognition - better relationships

Question 12

free trade

Answer 12

enables countries to buy and sell each others goods and services without barriers to trade such as tariffs, quotas, embargoes

Question 13

trading bloc

Answer 13

group of countries that organise a free trade area, common market or customs union between themselves in order to reduce trade barriers
agree on a common set of tariffs on imports from countries outside bloc
eg EU

Question 14

barriers to trade (protectionism)

Answer 14

tariff
quota
embargo
subsidy

Question 15

tariff

Answer 15

tax placed on imported goods

makes imported item more expensive and less attractive

Question 16

quota

Answer 16

limit on number of products that may be imported

Question 17

embargo

Answer 17

complete ban on all imports from or exports to a country

Question 18

subsidy

Answer 18

gov gives financial support to a domestic industry or indigenous business so they can sell their products more cheaply around the world
payment to producer to reduce the cost of production, which boosts employment and exports

Question 19

WTO

Answer 19

world trade organisation
body consisting of over 150 countries, including ireland
holds negotiations between countries and reach agreements to remove barriers to international trade

Question 20

deregulation

Answer 20

reduction or elimination of gov power in a particular industry
involves removing legal barriers to entering an industry
usually creates more competition within the industry
increase in competition should to an increase in efficiency and lower prices

Question 21

challenges for irish businesses in international trade

Answer 21

high costs
languages 
location
cultural differences
exchange rates

Question 22

impacts of ICT on international trade

Answer 22

high speed broadband - quick communication
more data analytics - better decision making
e commerce - higher sales
digital marketing
video conferencing

Question 23

how changing nature of the international economy affects irish exporters

Answer 23

changes in technology
new emerging markets
growth in globalisation
new EU countries = more competition

Question 24

government help for irish exporters

Answer 24

enterprise ireland
department of business, enterprise, innovation
diplomatic services - promote ireland abroad and lobbying foreign govs and companies to trade with irish businesses