Unit 7: The International Environment

Question 1

Open economy

Answer 1

an economy that engages in international trade

Question 2

International trade

Answer 2

the buying and selling of goods and services between countries

Question 3

Imports

Answer 3

goods and services bought from other countries eg cars, lemons, oil, wine. Imports cause money to leave Ireland

Question 4

Visible imports

Answer 4

businesses or people based in Ireland buying physical products from foreign countries

Question 5

Invisible imports

Answer 5

businesses or people based in Ireland buying services from other countries eg insurance, banking, tourism

Question 6

Exports

Answer 6

goods and services sold to other countries eg food, beverages, pharamceutical products. Exports bring money into Ireland

Question 7

Visible Exports

Answer 7

physical goods sold by businesses and people based in Ireland to customers based in other countries

Question 8

Invisible exports

Answer 8

services sold by businesses and people in Ireland to customers in other countries

Question 9

Balance of trade

Answer 9

the difference between visible exports and visible imports

Question 10

Balance of invisible trade

Answer 10

the difference between invisible exports and invisible imports

Question 11

Balance of payments

Answer 11

the difference between total exports and total imports. It shows the total amount of money entering or leaving a country in the course of a year

Question 12

Import substitution

Answer 12

a trade policy that replaces imports with domestically produced goods or services eg bachelor’s baked beans instead of heinz

Question 13

Free trade

Answer 13

when countries can buy and sell goods and services without any barriers to trade such as tariffs or embargoes

Question 14

Trading bloc

Answer 14

a group of participating countries that allow free trade between them eg the european union

Question 15

World Trade Organisation (WTO)

Answer 15

the organisation responsible for promoting fair trade between countries. It negotiates between member states by encouraging the removal of barriers to trade

Question 16

Protectionism

Answer 16

government actions and policies intended to protect domestic industries from foreign competition by imposing barriers to trade eg tariffs, quotas, embargoes

Question 17

Tariff

Answer 17

a tax on an import eg customs duty

Question 18

Quota

Answer 18

a limit on the number of units of a good that can be imported or exported

Question 19

Embargo

Answer 19

a total ban on the import of goods from a particular country

Question 20

Subsidy

Answer 20

a payment made by national governments to domestic firms to help them with their day-to-day operating costs, allowing them to be more competitive and to give them a price advantage over exports

Question 21

Administrative regulations

Answer 21

governments may deliberately create customs delays or demand excessively paperwork (informally called ‘red tape)to make importing as difficult as possible

Question 22

Deregulation

Answer 22

the removal of legal barriers to allow firms to enter and trade in a market. It usually creates more competition within the industry

Question 23

European Union

Answer 23

a trading bloc of 27 countries that have formed a policitcal and economic union with an international single market and the same laws applying to all member states

Question 24

European Commission

Answer 24

the executive body of the EU, responsible for its day to day management

Question 25

European Parliament

Answer 25

the EU's law-making body with legislative, supervisory and budgetary responsibilities. There are 705 MEPs who are directly elected by European Citizens every 5 years

Question 26

Council of the European Union

Answer 26

the main decision making body in the EU. Government ministers from each EU country gather according to the policy area to be discussed. It is often referred to as the council of ministers or just 'the Council'

Question 27

European Court of Auditors (ECA)

Answer 27

the guardian of EU finances. The main role of the ECA is to check that EU funds are correctly accounted for and properly collected and allocated. Each member state has one representative in the ECA

Question 28

Court of Justice of the European Union (CJEU)

Answer 28

an independent court that ensures that the EU states and institutions abide by EU law, and that the EU law is interpreted and applied to the same standard in every EU member state

Question 29

European Central Bank (ECB)

Answer 29

manages the euro, keeps prices stable and conducts EU economic and monetary policy

Question 30

European Council

Answer 30

brings together the national leaders of the EU member states to set the EU's political agenda and main priorities. It represents the highest level of political co-operation between member states. Ireland is represented on the European council by the Taoiseach

Question 31

EU directive

Answer 31

a legislative act of the EU that requires all member states to achieve a particular result within a set timeframe eg the Work-Life Balance Directive 2019

Question 32

EU regulation

Answer 32

a legislative act that becomes enforcable immediately as law in its entirety in all member states simulatneously eg GDPR2018

Question 33

EU decision

Answer 33

a binding legal instrument that may apply to individuals, companies or some or all member states eg google being fined €50 million for breaking GDPR laws

Question 34

EU recommendation

Answer 34

a non-binding way for the EU to voice its opinions on how countries can improve the way they operate

Question 35

Special Interest Groups

Answer 35

groups that attempt to influence the political or decision-making process but are not part of the political structure

Question 36

Lobbying

Answer 36

the deliberate effort to influence the decision-making process by promoting aparticular point of view or pressurising decision makers to alter their positions in a certain way

Question 37

Policy

Answer 37

a set of principles, rules and guidelines used to reach a specific goal and is implemented through agreed procedures

Question 38

European Single Market (ESM)

Answer 38

refers to the EU as one territory without internal borders or other regulatory obstacles to the 'four freedoms' - free movement of people, goods, services, capital

Question 39

Economic and Monetary Union (EMU)

Answer 39

the coordination of economic and fiscal policies, a common monetary policy and common currency

Question 40

EU competition policy

Answer 40

applying rules to make sure companies compete fairy with each other

Question 41

European Social Charter

Answer 41

includes fundamental rights in the field of social policy generally ( health, social security, welfare) and specifically in the fields of employment and industrial relations

Question 42

Common Fisheries Policy (CFP)

Answer 42

sets rules that give European fishing fleets access to EU waters, allowing national fleets to compete while aiming to conserve fish stocks for the future

Question 43

Common Agricultural Policy (CAP)

Answer 43

aims to support farmers and improve agricultural porductivity, ensuring a stable supply of affordable food. Income support through direct payments ensures income stability and pays farmers for environmentally friendly farming

Question 44

European Union Regional/ Cohesion Policy

Answer 44

an investment policy that suports job creation, competitiveness, economic growth, improved quality of life and sustainable development

Question 45

Transnational company TNC

Answer 45

produces or markets goods in more than one country. It has its controlling headquarters in one country and branches in other countries. It operates on a workldwide scale eg Dell

Question 46

Globalisation

Answer 46

the increasing integration of economies, cultures and societies around the world. This has comea bout due to increases in worldwide communication, trade, transport and migration over time. One outcome of globalisation is that the world is increasingly becoming one large marketplace

Question 47

Global business

Answer 47

sells its goods or services worldwide and regards the world as one giant market. It can choose its location, service provider and so on based on what best suits, eg factories in a low income country, loans from a foreign bank with low interest rates. eg Google

Question 48

Global marketing

Answer 48

uses standard or an adapted marketing mix to market its products throughout the world and build a loyal global brand

Question 49

Adapted marketing mix

Answer 49

it is common for businesses to adjust some elements of their marketing mix to reflect local customs, the local language or cultural, geographical or economic dofferences present in the market

Question 50

Product adaptation

Answer 50

when a product is customised to meet particular market requirements ef left or right hand drive vehicles

Question 51

Global product

Answer 51

a product that is sold worldwide

Question 52

Trade show

Answer 52

an exhibition organised so that a business in a specific industry can exhibit and demonstrate their products and services to customers