Foreign Trade Chapter 17 Flashcards Preview

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Flashcards in Foreign Trade Chapter 17 Deck (35)
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1
Q

What is importing

A

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

2
Q

What is Exporting

A

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

3
Q

What is Visible Imports

A

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

4
Q

What is Invisible Imports

A

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

5
Q

What is Visible Exports

A

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

6
Q

What is Invisible Exports

A

The sale of services to another country e.g The Irish band West Life performing in Germany.

7
Q

What is Importing Substitution

A

The purchase of Irish made goods instead of foreign imports e.g buying Tayto crisps instead of walkers crisps.

8
Q

What are the reasons for importing

A

1) Ireland does not have certain natural resources that are necessary for everyday living e.g such as oil, timber and coal.
2) the Irish climate doesn’t suit the production of items such as oranges, tea cotton or rice. We therefore need to buy these goods from other countries.
3) Irish people like a range of goods e.g iPod, iPad, many which are not made in Ireland, so they must be imported.

9
Q

What are the reasons for Exporting

A

1) Some countries are not able to produce large quantities of food products because their land or climate is unsuitable e.g potatoes.
2) Some goods can only be manufactured in Ireland because the skills and traditions needed are only available in Ireland 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/services to make profit.

10
Q

What are the difficulties associated with foreign trade

A

1) Transport
2) Foreign Currency
3) Damage
4) Language
5) Documents

11
Q

Explain Foreign Currency

A

~ Increased costs due to commission charges and exchange rates.

12
Q

Explain Language

A

~ They will have to deal with a different language when selling goods to some countries and may have to redesign packaging.

13
Q

What are the Main Trading Partners

A

🔶 Ireland imports and exports most goods and services from Britain and Northern Ireland.

🔶 Principal sources of imports
- UK, USA, Germany, Japan, France

🔶 Principal sources of exports
- UK, USA, Germany, France.

14
Q

What is the State Involvement in Exporting

A

The state organisation Enterprise Ireland assists Irish exports in the following ways
~ Provides information on foreign markets, shipping and transport.
~ Organises trade fairs and exhibitions abroad.
~ Arranges meetings with foreign buyers.

15
Q

What are the Other organisations which promote Irish exports

A
  • Bord Bia
  • Tourism Ireland
  • IDA ( Industrial Development Authority )
16
Q

What is the balance of trade

A

~ The balance of trade is the difference between a country’s visible imports and visible exports.

~ Balance of trade surplus
- total exports > total imports

~ Balance of trade deficit
- total exports

17
Q

What is the Balance of Payments

A

🔹 The Balance of Payments (on current account ) can be determined by comparing a country’s visible and invisible imports (Total Imports) to the visible and invisible exports (Total Exports )

🔹 Balance of payments surplus
- Total Exports > Total Imports

🔹 Balance of Payments deficit
- Total Exports

18
Q

What is the benefits of EU Membership to Ireland

A

🔶 Irish firms can sell their products/ services in a huge market and this has increased their sales and profits.

🔶 Irish people can travel or work in any EU member state (freedom of movement within the EU)

19
Q

What is restricted trade

A

As a member of the EU, Ireland engages in free trade with other EU states. However, Ireland and the EU can restrict trade with other countries in several ways, including:

  • Customs Duties
  • Taxes on imports that make them more expensive and less competitive
  • Quotas
  • A limit on the quantity of goods that are allowed to be Imported
  • Embargo
  • A total ban on the import of certain goods from a certain country
  • Subsidies (Grants)
  • Given to exporters to assist them in selling their products more cheaply.
20
Q

What is the currency of United States of America

A

American dollar

21
Q

What is the currency of Australia

A

Australian dollar

22
Q

What is the currency of Japan

A

Japanese Yen

23
Q

What is the currency of South Africa

A

South African Rand

24
Q

What is the currency of Russia

A

Russian Ruble/Rouble

25
Q

What is the currency of Lithuania

A

Lisa’s

26
Q

What is the currency of United Kingdom

A

Pound Sterling

27
Q

What is the currency of Denmark

A

Krone

28
Q

What is the currency of Sweden

A

Krona

29
Q

What is the currency of Czech Republic

A

Czech Crown

30
Q

What is the currency of Hungary

A

Florint

31
Q

What is the currency of Poland

A

Zloty

32
Q

What is the currency of Romania

A

Leu

33
Q

What is the currency of Bulgaria

A

Lev

34
Q

What is the currency of Croatia

A

Croatian Kuna

35
Q

What is Foreign trade

A

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