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International Trade
JC Business
Term | Definition |
---|---|
Export | A good or service sold to a foreign country. The money comes into the Irish Economy |
Import | A good or service imported from a foreign country that is sold to Irish consumers |
Visible Export | A physical good sold abroad by an Irish company to a foreign country |
Invisible Export | A non-physical service sold by an Irish company to a foreign country |
Visible Import | A physical good imported into Ireland from abroad |
Invisible Import | A non-physical service sold to Irish consumers from a foreign company |
Balance of Trade | Visible Exports minus Visible Imports |
Balance of Payments | Total Exports (Visible + Invisible) minus Total (Visible + Invisible) Imports |
An example for a Visible Export is | Cars |
Balance of Trade | Visible Exports minus Visible Imports |
Balance of Payments | Total Exports minus Total Imports |
An example for a Visible Export is | Meat |
An example for an Insivible Export is | U2 Playing Abroad |
An example for a Visible Import is | Cars |
An example for an Invisible Import is | Buying insurance from a foreign company |
Why Ireland exports | Market to small Surplus production of goods |
Why Ireland imports | Unsuitable climate Raw materials may not he availible iin Ireland eg Oil, Steel and Bananas |
Import Substitution | Producing goods in Ireland to replace foreign imports |
Trade Surplus | When visible exports are greater than visible imports |
Balance of Payments Surplus | When total exports are greater than total imports |