International trade

• Imports - goods and services are provided into Ireland from a foreign company or country e.g bananas
• Invisible export - Invisible services are sold from Ireland to a foreign company or country , which

  means money comes into Ireland. E.g tourism,insurance services
• Barriers to international trade -

  1. Embargo - An official ban on trade or other commercial activity with a particular company

  2. Tariff - A tax on goods and services imported into a country
• Why does Ireland trade with other countries

  1. To generate funds to pay for imports
  2. Small domestic market, international trade gives Irish businesses access to a large market.
  3. To acquire goods/services that are not available domestically/ more choice for consumers for example oil, coffee, bananas.
  4. Access to cheaper goods rather than producing them domestically.
• Globalisation: This is the idea that our world is interconnected through international trade (also called global trade) and

  faster communication / people, goods, money and ideas are able to move around the

  world faster and more cheaply than ever before. This is mostly due to better transport and

  technology and the fact that countries are more open to trading with each other.
• International trade increase employment in Ireland
• Quota: Countries limit the amount of a good that can be imported into their country.

  Subsidy: This is a direct payment to a domestic producer. It will reduce the cost of

  production and make exports cheaper
• Location factor - skilled workforce
• International trade