International Trade Flashcards
What is an open economy?
An economy which trades goods and services with other countries
What are imports?
Goods brought in from another country eg cars
What are exports?
Goods sent to another country eg beef
What is visible trade ?
The trading of physical goods
What is invisible trade ?
The trading of services
2 visible imports
Oil
Cars
2 invisible imports
Irish person holiday in spain
French person winning Irish held game
2 visible exports
Beef
Dairy
2 invisible exports
Irish band playing gig not in ireland
American tourists coming to ireland
What is balance of trade?
Visible exports- visible imports
What is balance of payments
Total exports - total imports
5 barriers to trade
Tariffs:a tax on imports
Embargo:ban on certain goods
Subsidy: price support given by government
Quota : limit on goods and services
2 benefits of global trade
Increased choice of goods and services
Employment
2 challenges of global trade
Currency change
Transport
