buisness chp33

• TNC decide where to locate

  • a well educated workforce
  • an english speaking country
  • the availability of cheap labour
  • a ready supply of necessary raw materials
  • a country that is located in the EU fee trade area
  • low corporation tax
• benifts of TNC

  • they probide employment
  • they create additional jobs
  • they enhance our reputuaion as a good place to do buisness
• drawbacks of TNC

  • some TNC may locate in the devoloping world simply to avail of cheap labour
  • a community may become dependent on TNC
  • may use legal means to avoid paying taxes
  • sometimes demand and get lower prices from suppliers becuause of their powerful position
  • TNC may not respect the rights of workers in developing countries
• importing is when goods or services are brought from one country to another
• exporting is when good and services are sent from one country to another
• visible trade is the import and export of phsyical goods
• invisible trade is the import and export of services
• reasons for imports

  • ireland does not have some natural resources
  • irelands climate is not suitalbe for growing certain products
  • we may want to have a particular product
• reasons for exportimng

  • we export foods to countrys that are unable to produce their own
  • there is a huge demand in other countries for irish foods
  • irish companies export goods in order to increase their sale
• benefits of international trade
• benfits for international trade

  • irish consumers have access to a wide range of goods and services
  • irish goverment benefits from increased tax revenue
  • irish consumers will benefit from lower prices as different producers compete for buisnss
• challenegs for international trade

  • some imported goods may have been produced in factories where there is little concern for workers
  • firms invloved in international trade may have to use a foreign currency
• different types of barriers can be put up to protect dimestic trade

  tarrifs , quotas , embargos , sibsides
• tariff is a tax placed on imported goods into a country or trading area
• quotas is a limit on the amount of a product that can be imported into a country
• embargos is a totol ban on the import of certain goodd into a country or traiding area
• subsides is where an individual country eg EU gives financial support to a particular firm or industy in order to help it compete
• balance of trade equals

  visble exports - visible imports
• balance of paymemts equals 


  total exports - total imports