Foreign Trade

Chapter 24
Ms. Keely
Foreign Trade & Ireland
Barriers to International Trade
Balance of Trade & Balance of
Payments
Irish Business & International Trade
Trading Bloc

Foreign Trade in Ireland

International Trade refers to the buying
ad selling of goods and services between
countries
Ireland is a small open trading economy
and part of the EU

Measuring International
Trade
Balance of Trade = Visible Exports
Visible Imports
Balance of Invisible Trade = Invisible
Exports Invisible Imports
Balance of Payments = Total Exports
Total Imports

Benifites to International
Trade
Business

Large Markets
Economies of Scale
Quality Goods from different suppliers

Consumer

Lower prices and better choice

Better quality products

Economy

Can sell surplus production

Specialisation (goods from country)
Employment
Higher standard of living

Protectionism
Governments try to limit imports
coming into the country
Want to allow home firms to stay in
business
Barriers to Trade
Import Taxes
Subsidies
Embargos
Quotas

Trends in International
Trade
Transport Easier
Communication Systems Cheaper
Increase in TNCs
World is now a market
Unions EU
Deregulation

World Trade Organisation

(WTO)
Promotes free trade worldwide
Eliminates trading agreements
between countries
Resolves trading disputes
Protects Intellectual Property
Rights

Opportunities of
International Trade for
Ireland
English Language
Euro Currency
EU Membership
Green Image
World-class manufacturing
TNCs (Transnational Companies)

Challenges of International
Trade for Ireland
Competition
High Costs of Transport
Expensive to produce goods
Cultural/ Language differences
Different Currencies

International Trade
Keywords

International Trade
Open Trading Economy
Imports (Visible and Invisible)
Exports (Visible and Invisible)
Balance of Trade = Visible Exports Visible Imports
Balance of Invisible Trade = Invisible Exports Invisible
Imports
Balance of Payments = Total Exports Total Imports
Protectionism
World Trade Organisation (WTO)