Ireland And The Interantional Environment

Question 1

Open economy

Answer 1

Engages in international trade

Question 2

International trade

Answer 2

Refers to the buying and selling of goods and services between countries.

Question 3

Why is an open economy important

Answer 3

• fuels economic growth
• creates employment
• improves the standard of living

Question 4

Imports

Answer 4

Goods and services bought from other countries eg cars

Question 5

Visible imports

Answer 5

Buying physical products from foreign countries

Question 6

Invisible imports

Answer 6

Buying services from from foreign countries eg insurance

Question 7

Reasons why goods are imported to Ireland

Answer 7

• production
• climate
• natural resources or raw materials
• consumer choice
• brand availability

Question 8

Exports

Answer 8

Goods and services sold to other countries eg food

Question 9

Visible exports

Answer 9

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

Question 10

Invisible exports

Answer 10

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

Question 11

Reasons why goods are exported from Ireland

Answer 11

• profitability
• earn money
• increased employment
• diversification

Question 12

Methods of reducing a balance of payments deficit

Answer 12

• increase import substitution
• increase exports
• government agencies

Question 13

Increase import substitution

Answer 13

A trade policy that replaces imports with domestically produced goods and services eg goodfellas pizza instead of Chicago town

Question 14

Importance of international trade to Irish business

Answer 14

• larger market
• economies of scale
• increased efficiency
• increased competition

Question 15

Importance of international trade to Irish consumers

Answer 15

• choice and variety
• lower prices
• higher quality goods
• increased standard of living

Question 16

Importance of international trade to the Irish economy

Answer 16

• increased world output
• economic growth
• foreign currency
• international co-operation

Question 17

Free trade

Answer 17

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

Question 18

Trading bloc

Answer 18

A group of participating countries that allow free trade between them eg the European Union

Question 19

World trade organisation

Answer 19

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

Question 20

Barriers to trade ( protectionism)

Answer 20

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

Question 21

Tariff

Answer 21

A tax on an import eg custom duties