1. International Trade ch 24 Unit 7

2. Exporting and importing
Visible exports: Waterford crystal selling products to American shops
Dell sells computers made in Ireland to countries abroad
Invisible Exports:
Ireland selling services to foreign countries. E.G: Tourists who stay in Dublin Hotels
U2 tours Oz

3. Continued - Visible Imports
Is Ireland buying products from foreign countries
Dunnes buys fruit from Africa, BT buys clothes from Ralph lauren USA.
Invisible Imports:
Ireland buying services from foreign countries
E.G Irish Tourists staying abroad, Foreign Concerts held here in Eire.

4. Balance of Trade and the balance of Payments
Government accounts that show the difference in value of products we imports v export. BT= Vis ex – Vis Imp
Balance of payments- includes services and invisible trade . BT = Total exports- Total Imports. When richer i.e exports>Imports then we have a surplus otherwise a deficit.
Work out a sum p430 and p443 q5

5. Countries import because of
Resources we don’t have - oil
Unsuitable climate - Pineapples
Lack of skills – Cars
Bigger choice for consumers – Ipad

6. Why exports?
Survival- market not big enough here. E.G Irish market for new drugs vs global
Increase sales and profits
Diversification – spread the risk. Irish economy is poor but other markets might be performing.

7. Why is international trade important to Ireland
Billions more customers available. More choices.
Economies of scale. The bigger you are the cheaper to buy in bulk, production and advertising. Better negotiating powers.
Can receive foreign currency and use to pay off imports e.g us dollars
More jobs, infrastructure, lower taxes,
Competition forces our own companies to improve and brings down prices for customers

8. Free trade versus Protectionism
Can buy and sell with no legal, tax and distribution barriers. – EU
Protectionism. Ireland used to be more like this under Devalera. Lessen foreign imports and become more self sufficent. Erect more barriers to trade.
E.g’s Taxes like tariffs, add cost onto foreign imports making them more expensive than local products.

9. More barriers to trade
Quota : will only allow a certain amount of imports in. E.G the EU has a quota on Chinese garments into EU
Embargo:
Complete ban on a particular import: USA bans products from Cuba.
Subsidy: Grant to local businesses to help undercut foreign competition.

10. Changes to International Economy
Globalisation
Improved ICT
More trading blocs NAFTA
Deregulation of International Trade – WTO
New Markets

11. Irelands Opportunities
EU- More sales
Lower Costs – economies of scale
Diversification – spread risk diff market
Earn Foreign Currency
Overcome Trade barriers
English
Educated workforce
Green Image

12. Ireland’s Challenges Foreign languages - interpretations
Exchange rates
Distribution Probs – transport costs weather and timetables
Cultural differences – acceptable norms?
Competition from low wage economies
Payment problems

13. Role of ICT in world trade
Increased sales due to efficiencies and e- commerce world wide 24hrs7 days a week open shop.
Advertising: Ads google and page ranking
Faster and cheaper communications s and quick online updating of sop and pop.
Decision making info on topics ,on markets, opportunities
Reduced costs : video conferencing time and expense

14. Government help Irish exporters by
Enterprise Ireland – advise, market research, funding, low cost loans, training courses, customisation
Department of Enterprise trade and employment – docs for foreign trade, regulations advise, export credit insurance (gov pays if the Irish exporter doesn’t get paid)
Diplomatic services; promotions, lobbying governments and companies to trade in ireland, to resolve problems that arise for our companies abroad, trade missions with irish president, trade fairs (orders are signed and irish companies attract publicity.

15. Questions Difference between invisible imports and visable exports?
Balance of trade vs the balance of payments?
Why is international trade nb?
What are the changes to the international economy?
Protectionism vs free trade?
Barriers to trading discuss
Opportunities and challenges for Ireland and I.T?
How does the government help?

16. Conclusions
Visible and invisible imports and exports – Balance of payments
Globalisation, Consolidation, Deregulation.
Why important for Ireland
Free trade Capitalist versus Protectionist Chinese model.
Michael Mooreoore dvd about capitalism- notes
Opportunities and challenges for Ireland internationally.
ICT and Gov roles