Foreign trade is the buying and selling of goods and services between countries.
Import & Export
- An import is a good or service purchased by residents of a country and causes money to go out of the country
An export is a good or service purchased by people abroad and causes money to come into the country
Irelands main traded goods
Benefits to Ireland from EU membership
- Free access to a market of over 500 million people.
New companies have located in Ireland.
Access to grants and subsidies from the European Bank.
Access to more goods and services at a lower price.
Eurozone simplifies trade ( Less currencies to deal with).
Problems with EU membership
- Communication: Language barriers can cause trouble
- Transport: Ireland is an island so we pay increased transport costs
- Currency: Different exchange rates for currencies
This is divided into visible and invisible trade
Physical products that can be seen
Visible exports eg Food, Microchips
Visible imports eg Cars, Fruit and Timber
Not physical product can not be seen
Invisible exports eg Tourism, Foreign transport earnings
Invisible imports eg Foreign insurance companies, foreign banks
Balance Of Payement
Record of a countries economic transactions with other countries.
Balance Of Trade
Difference between value of visible exports-visible imports.