International Trade - Business Revision Notes

© irevise.com 2016.

All revision notes have been produced by mockness ltd for irevise.com.

Contents

International Trade 4

Why do Countries Import? 4

Why do Countries Export? 4

Significance of International trade to the Irish Economy 5

Barriers to Trade 5

Changes in International Economy 6

Ireland’s Opportunities in Developed and Developing Markets 6

Ireland’s Challenges in Developed and Developing Markets 7

Role of ICT in International Trade (Information Communications Technology) 7

Government Assistance for Irish Exporters 8

International Trade

  • International Trade is the commerce between companies in different countries. It involves importing and exporting goods from Ireland and abroad.
  • Visible Exports: Ireland sells products to foreign countries. Example: Waterford crystal being sold in the EU.
  • Invisible Exports: Ireland sells services to foreign countries. Example: an Irish band doing a concert in the UK.
  • Visible Imports: Ireland buys products from foreign countries. Example: an Irish shop buying oranges from Spain.
  • Invisible Imports: Ireland buying services from foreign countries. Example: An American singer having a concert in Ireland.

Balance of Trade= Visible exports- visible imports

Balance of Payments= total exports- total imports

Why do Countries Import?

  1. Lack of natural resources: may not have resources needed for business – must import. Example: oil
  2. Unsuitable climate: may not have the correct weather conditions. Example: coffee, bananas
  3. Lack of skills: some countries have tradition in being very skilled making certain products. Example: Swiss watches better than Irish watches.
  4. Bigger choice for consumers: Government doesn’t block trade – consumers have more choice. Example: you can buy potatoes from outside Ireland.

Why do Countries Export?

  1. Survival: home market may be too small to make a profit.
  2. To increase sales and profits: U2 sell CDs worldwide – bigger market.
  3. Diversification: if sales in one country go through a bad patch (recession). sales in other countries should ...

Sign In To View

Sign in or sign up in order to view resources on iRevise

Sign In Create An Account