Chapter 17~Foreign Trade

Question 1

Importing?

Answer 1

The purchase of goods and services from other countries for sale in Ireland (Money leaves Ireland)

Question 2

Exporting?

Answer 2

When Irish goods and services are sold to other countries (money comes into Ireland)

Question 3

Visible imports?

Answer 3

The purchase of physical (visible) goods from another country e.g. Ireland buying tea from Ski Lanka

Question 4

Invisible imports?

Answer 4

The purchase of services from another country e.g. Irish person holidaying in France

Question 5

Visible export?

Answer 5

The sale of physical visible goods to another country e.g. Ireland selling beef to Britain

Question 6

Invisible exports?

Answer 6

The sale of services to another country e.g. the Irish band Westlife performing a concert in Germany

Question 7

Import substitution?

Answer 7

The purchase of Irish made goods instead of foreign imports e.g. Buy Irish (adds) Barry’s tea

Question 8

Capital goods?

Answer 8

Goods that help in the production of other goods e.g. machinery, factory assembly line

Question 9

3 reasons for importing

Answer 9

1. Ireland does not have certain natural resources that are necessary for every day things e.g. oil, timber and coal
2. Irish people like a range of goods e.g. iPad , iPhone
3. Irish climate doesn’t suit the production of some goods e.g. Oranges

Question 10

3 Reasons for exporting

Answer 10

1. some countries are not able to produce large quantities of food products because their land climate is unsuitable e.g. Potatoes
2. Some goods can only be manufactured in Ireland because the skills and traditions are needed e.g Aran knitwear
3. As Ireland is a very small island, the Irish market is too small, and such Irish firms need to export their goods to make profit

Question 11

2 difficulties associated with foreign trade

Answer 11

• foreign currency : increased costs/exchange rates

- language : redesign packaging

Question 12

Who are Ireland’s main trading partners?

Answer 12

Britian and Northern Ireland

Question 13

What is the states involvement in exporting?

Answer 13

This state organisation enterprise Ireland assists Irish exports by

• providing information on foreign markets, shipping and transport.
• Organises trade fairs and exhibitions abroad.

Question 14

What is the balance of trade?

Answer 14

The difference between countries visible exports and visible imports

E.g
VE.    200
VI.      350
         \_\_\_\_\_\_\_\_\_
          150 = balance of tarde deficit

Question 15

What is the balance of payments?

Answer 15

The balance of payments can be determined by subtracting your visible imports and exports and adding them to the subtraction of your invisible imports and exports

E.g
VE     200
VI       350
          \_\_\_\_\_\_
           150m

IE. 200
II. 140
______
60 m

V 100
I 60
____
160m

Question 16

Foreign trade?

Answer 16

Foreign-trade occurs when Ireland buys goods and services from other countries or sells goods and services to other countries