Foreign Trade. For up-to-date statistics visit slss.ie Business & Enterprise Economics Susan Hayes the positive Economist updates.

Slides:

Advertisements

Similar presentations

Trade LESSON AIMS: What is trade?

Advertisements

National & Global Economy

C HAPTER 15 – I NTERNATIONAL T RADE. - T RADE Trading is the Buying (importing) & Selling (exporting) of different products between countries. An Open.

Foreign Trade. For up-to-date statistics visit Susan Hayes “The Positive Economist”

CHAPTER 15 ECONOMICS 3: International Trade. 2 R. Delaney Foreign or International Trade Foreign trade (or international trade) means selling goods and.

International Trading Environment

POB 1.03 Part 1 Understand business in the global marketplace.

Exchange Rates By Katie Murray. – Def: The price of one currency in terms of another.

The National Budget For up-to-date-statistics visit Susan Hayes “The Positive Economist”

TRADE SURPLUS Exports exceed Imports. X – M > 0 Americans spend more on our goods than we spend on theirs. (If we have a surplus with them, they have a.

Trade Balances around the World Tutor2u Economics, February 2009.

Foreign Exchange and Currencies Economics 71a Spring 2007 Mayo, Chapter 6 (skim) Lecture notes 2.6.

Warm-up Make a list of 5 products, services, or ideas you believe we import. Make a list of 5 products, services, or ideas that you believe we export Why.

INTERNATIONAL TRADE TRADE WITH TWO OR MORE COUNTRIES.

3-1International Business Basics SLI DE 1. TRADING AMONG NATIONS Most business activities occur within a country’s own borders. Domestic business is the.

 We have several different exchange rates, one for each currency.  It measures how much we would get in terms of the other currency per $1 NZ.

International Trade. Exports v. Imports Exports – goods sold to other countries Imports - goods bought from other countries.

Unit 1.5 Understanding the Economic Context. Starter … As an adult, if you were out in town and you had no money to pay for your taxi home, what could.

INTERNATIONAL TRADE LEARNING OUTCOME 8. THE BENEFITS OF TRADE Absolute Advantage Comparative Advantage Economies of Large Scale When a country can produce.

Rachel Farrell & Aoife Healion International Trading Environment.

Foreign Exchange Rates Flexible Exchange Rates Uses demand and supply to determine the value of one nation’s currency compared to another nation’s Equilibrium.

Unit 27 International Trade

Balance of Payments Objectives: Define Balance of Payments (BOP);

Macroeconomics – Unit 6. An open economy (as opposed to a _________ economy) interacts with the rest of the world through... Goods market Financial markets.

Exchange Rate To be able to identify weak and strong currencies To understand the impact of a currencies strength on its balance of trade.

BALANCE OF PAYMENT by Shalini. Trade: Exchange of goods and services with other nations. Export Goods and services sold to other countries Import Goods.

Ch. 16: International Trade ECONOMICS 12. International Trade Canadians have become accustomed to consuming goods & services from all parts of the world.

Balance of Payments, Exchange Rates & Trade Deficits

IGCSE®/O Level Economics

International Trade. Balance of Payments The Balance of Payments is a record of a country’s transactions with the rest of the world. The B of P consists.

Balance of Payments : When American citizens and firms exchange goods and services with foreign consumers and firms, payments are sent back and forth through.

Types of trade  Getting started P160 i. Visible trade = international trade in goods → balance of trade or visible balance = visible exports (X) – visible.

‘Strong’ vs. ‘Weak’ Currency Exchange Rates: The price at which currency can be bought and sold.

INTERNATIONAL TRADE TRADE WITH TWO OR MORE COUNTRIES.

BBI2O – Introduction to Business | Mr. Ruston

INTERNATIONAL BUSINESS BASICS NOTES. WHAT IS INTERNATIONAL BUSINESS?  Refers to business activities needed to create, ship, and sell goods and services.

1. What is the national debt? 2. What caused the national debt? 3. Where does the government get the money when it wants to spend more than it takes in?

Before Activity Think-Pair-Share –List imports & exports of the U.S.

Objective 1.03 Understand business in the global marketplace. 1.

Chapter 17.3 Notes Financing & Trade Deficit. I.When countries trade, why was it hard to pay each other? A. Because each country has its own currency/

Global Trade. Question What is International Trade?

International Business Basics

Extra International Trade Concepts. Trade Deficit Occurs when the United States buys more goods from overseas than it sells.

Global Trade For countries to grade goods and services, they must also trade their currencies. The process of converting one currency to another is known.

Balance of payment. Definition of Balance of Payment Balance of Payments (BoP) statistics systematically summaries the economic transactions of an economy.

International Economics Lesson 4: Balance of Trade & Balance of Payments.

International Trade Trading Goods and Services. Specialization and Trade: Everyone Benefits Specialization: We specialize by doing just one kind of job.

UNIT 2 – BUSINESS IN THE GLOBAL ECONOMY Unit 2.01 International Business Basics.

Foreign Trade and Trade Agreements. Trade is an important part of Canada’s economy and our number 1 trade partner is the USA; they buy about 90% of the.

Balance of Payments A measure of the transactions between United Kingdom residents and the rest of the world.

Chapter 3 Business in the Global Economy. 3-1 International Business Basics Goals: ◦ Describe importing and exporting activities. ◦ Compare balance of.

Opener. Section 1 Assessment 1. Trade benefits both wealthy and poor countries because (a) self-sufficiency is too costly. (b) both wealthy.

International Business Basics 3-1. Trading Among Nations Domestic Business International Business (Foreign or world trade) Making, buying, and selling.

Chapter 23 International Trading Environment. What is Home/Domestic Trade? Buying and selling of goods & services in our own country.

GCSE Business Studies - Human Resources. Describe what is meant by ‘business ethics’? Ideas about what is morally correct or not, applied in a business.

Balance of Payments. What is it?  A record of all financial dealings between economic agents of one country and the rest of the world.

Balance of Payments What is the balance of payments The balance of payments is a record of all economic transactions between the residents of a country.

Balance of Payments. Definition  A record of all transactions leading to international trade.

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

UNIT 3 – BUSINESS IN THE GLOBAL ECONOMY Unit 3.01 International Business Basics.

OF. Who Is This Balance of Payments What is the balance of payments The balance of payments is a record of all economic transactions between the residents.

BALANCE OF PAYMENTS TWO ASPECTS CONCEPT/THEORY DATA, IRELAND, EU, USA READING S, BDF, SLOMAN, OTHER DATA SUMMARY OF ECONOMIC RELATIONS BETWEEN TWO AREAS.

Trading Goods and Services

Chapter 17 International Trade.

Exchange Rates.

Chapter 22 International trade

Measuring the Value of Trade

International Trade, Globalisation, EU 3.7 & 3.8

International Trade ch 24 Unit 7

The National Budget.

Presentation transcript:

Foreign Trade

For up-to-date statistics visit slss.ie Business & Enterprise Economics Susan Hayes the positive Economist updates

What is Home/Domestic Trade? Buying and selling of goods & services in our own country.

What is Foreign Trade? Importing: buying goods & services from other countries. Exporting: selling goods & services to other countries.

Who are our main Trading Partners? COUNTRYCURRENCYLANGUAGE USADollarEnglish BritainSterlingEnglish EuropeEuro + others Various Japan (importing) Japanese YenJapanese

What are imports? Goods and services that we buy from other countries. Money leaves Ireland.

Why do we import? To obtain goods that are not available in Ireland. Eg. oil, tea, coffee …………. To avail of services not in Ireland. Eg. pop groups, foreign holidays……… To have varitey and choice of goods & services.

Visible Imports Goods which are bought from other countries. Money leaves the country Eg. citrus fruit, wine, cars……..

Invisible Imports Services that are bought from other countries. Money leaves the country. Eg. Irish person on holidy in USA BEP in concert in Dublin French horse winning Irish Grand National

What is Import Substitution? Buying Irish goods instead of foreign goods. Eg. buying Irish potatoes instead of Spanish potatoes.

What are Exports? Irish goods and services that we sell to foreign countries. Money comes into the country.

Why do we export? To obtain foreign currency needed to buy our imports. Ireland is a small country so we need a wider market such as EU, USA etc. Selling more means more jobs are created.

Visible Exports Irish goods that are sold to foreign countries. Money comes into the country. Eg. Irish beef sold abroad. Tullamore Dew sold to UK Waterford Crystal sold to US.

Invisible Exports Irish services that are sold to foreign countries. Money comes into the country. Eg. Westlife playing in Wembly. US citizen on holidy on Ireland. Irish horse winning the English Grand National.

Problems connected with foreign trade. Language Currency – exchange rates may change. Transport Insurance Safety standards are different in each country.

What is the Balance of Trade? (TV) Visible Exports – Visible Imports

What is the Balance of Invisible Trade? Invisible Exports – Invisible Imports

What is the Balance of Payments?  Total Exports – Total Imports

Balance of Trade/Payments can be……. Surplus: Exports greater than Imports Deficit: Imports greater than Exports Balanced: Exports = Imports

Benefits of a Balance of Payments Surplus More money coming into the country. This money can be used to pay off some of our debt or reduce tax. More money and jobs and a better standard of living for Irish people.

What problems will a Balance of Payments deficit cause? Too much money leaving the country. Government will have to raise taxes and/or borrow. Irish people will lose their jobs.

How can a Balance of Payments Deficit be reduced? Import substiution: Buy Irish! Government Agencies such as An Bord Trachtala, Failte Ireland and An Bord Bia can promote/market Irish exports.

Exam Question 2006 P1 Q 3. Balance of Trade Visible Exports €540m Less Visible Imports €400m Surplus €140m

Continued.. Balance of Invisible Trade Invisible Exports €620m Less Invisible Imports €260m Surplus €360m

Continued… Balance of Payments Total Exports ( ) €1160 Less Total Imports ( ) € 660 Surplus €500