ROLE AND BENEFITS OF INTERNATIONAL TRADE SPECIALISATION ENABLES COUNTRIES TO CONCENTRATE ON THE PRODUCTS AND SERVICES IN WHICH THEY ARE MOST EFFICIENT HIGHER PRODUCTIVITY AND HIGHER INCOMES

FOR VARIOUS REASONS IRELAND IS NOT EFFICIENT IN CAR PRODUCTION. SENSIBLE TO BUY CARS FROM COUNTRIES WHICH ARE EFFICIENT. PORTUGAL IMPORTS BEEF. INCREASED CHOICE FOR CONSUMERS THROUGH IMPORTS. THIS INCREASES CONSUMER UTILITY.

EXPORTS GIVE ACCESS TO ADDITIONAL MARKETS WHICH ENABLES ENTERPRISES TO REACH CRITICAL MASS/SCALE WHICH WOULD NOT BE POSSIBLE IN THE DOMESTIC MARKET. EXPORT MARKETS ENABLE ENTERPRISES TO AVAIL OF ECONOMIES OF SCALE AND THEREFORE PRODUCE AT LOWER AVERAGE COST OF PRODUCTION. IMPORTS AND THE POSSIBILITY OF IMPORTS INCREASE DOMESTIC COMPETITION AND FORCES EFFICIENCIES.

THIS ENSURES A BETTER SERVICE TO CONSUMERS IN PRICE AND QUALITY. AN EXTENSION OF THE CHOICE BENEFIT IS THAT THERE MAY BE ESSENTIAL PRODUCTS WHICH ARE NOT AVAILABLE IN THE DOMESTIC ECONOMY SUCH AS OIL. TRADE MAKES THIS AVAILABLE AND EXPORTS ARE ESSENTIAL TO EARN THE FOREIGN EXCHANGE ( or to swop) FOR THE OIL RAW MATERIALS, SHIPPING INSURANCE

SOCIAL BENEFITS MAY ARISE THROUGH INTERACTION OF COUNTRIES, MUTUAL UNDERSTANDING, AVOIDANCE OF WAR. THERE ARE ALSO NEGATIVES ASSOCIATED WITH INTERNATIONAL TRADE

INCREASED OR NEW COMPETITION CAN CAUSE UNEMPLOYMENT AND /OR WIPE OUT DOMESTIC INDUSTRIES TRADITIONAL DOMESTIC CULTURE CAN BE WEAKENED AS INTERNATIONAL TASTES DOMINATE ECONOMIC IMPERIALISM AND EXTERNAL DOMINATION (GAS AND OIL SUPPLIES) SPECIFIC EXPORT SUCCESS CAN WORSEN RELATIONS WITH THE IMPORTING COUNTRIES ( CARS FROM JAPAN IN USA, TEXTILES FROM CHINA IN EU)

COUNTRIES CAN GET LOCKED INTO A PARTICULAR PATTERN OF PRODUCTION WHICH DOES NOT GENERATE HIGH INCOMES OR ECONOMIC STRENGTH SUCH AS AGRICULTURE/ THEY MIGHT PREFER TO GRADUALLY BUILD UP ALTERNATIVE “BETTER INDUSTRIES” BUT WITH FREE INTERNATIONAL TRADE AND COMPETITION THIS IS DIFFICULT OR IMPOSSIBLE

IRELAND(EU) AND INTERNATIONAL TRADE ????????? ROLE NEED OIL AND RAW MATERIALS TO SUPPORT INDUSTRY AND SOCIETY LIKE ACCESS TO CHEAP CLOTHNG AND TEXTILES IMPORTS OUT SOURCING OF MANUFACTURING TO CHEAPER PRODUCERS IN LOW WAGE ECONOMIES AND THEN IMPORT BACK INTO EU

INCREASED CHOICE……. CARS FROM JAPAN IRISH AND EU INDUSTRIES WANT ACCESS TO WORLD MARKETS TO SELL MORE PRODUCTS AND SERVICES….TO GET LONGER PRODUCTION RUNS AND SUPPORT GROWTH NEED EXPORTS TO PAY FOR THE IMPORTS

ON THE COSTS SIDE ARE INCREASED COMPETITION, WEAKER LOCAL INDUSTRIES IN SOME SECTORS. UNEMPLOYMENT…………..IF THERE WERE NO CAR IMPORTS INTO THE EU THE LOCAL CAR INDUSTRY WOULD BE BIGGER AND EMPLOYMENT WOULD BE HGHER BUT….COSTS WOULD ALSO BE HIGHER AND CONSUMERS WOULD BE WORSE OFF

IRELAND IS A VERY SMALL ECONOMY JUST OVER 4M PEOPLE LIMITED DOMESTIC SUPPLY OF RAW MATERIALS LIMITED CHOICE OF FRUIT DUE TO CLIMATE DIFFICULT TO BUILD ENTERPRISES TO EFFICIENT SCALE IN THE SMALL ECONOMY

INTERNATIONAL TRADE VERY IMPORTANT IMAGINE THE NATURE OF THE ECONOMY IF THERE WAS NO INTERNATIONAL TRADE???????????? GENERALLY, THE SMALLER THE ECONOMY THE MORE SIGNIFICANT IS INTERNATIONAL TRADE

EXPORTS SEEN AS “GOOD”…EARN FOREIGN EXCHANGE OR EURO REFLECTS “OUR” ABILITY TO SELL ABROAD IMPORTS SEEN AS A “BAD”……….NEVER SEE A MINISTER PUTTING OUT A PRESS RELEASE PRAISING THE RECENT GROWTH IN IMPORTS NOT EXACTLY A FULLY CORRECT INTERPRETATION

EXPORTS ARE WHAT WE PRODUCE BUT OTHER COUNTRIES CONSUME OR USE. THEREFORE THEY ARE PART OF WHAT WE MAKE BUT DO NOT GET TO USE. BETTER IF WE COULD HAVE IT ALL. IMPORTS ARE WHAT WE GET TO USE FROM OTHER COUNTRIES PRODUCTION. IDEAL IF WE DID NOT HAVE TO EXPORT AND WE COULD CONTINUE TO IMPORT. OUR CONSUMPTION WOULD BE MUCH HIGHER.

OF COURSE NO COUNTRY WILL GIVE US IMPORTS, HENCE WE HAVE TO SWOP THE EXPORTS TO GET THE IMPORTS……….EXPORTS NEEDED TO FINANCE THE IMPORTS. LOOK AT WTO SITE FOR 10 BENEFITS OF THE WORLD TRADE SYSTEM