1 / 25

Foreign Trade

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?.

bentond
Télécharger la présentation

Foreign Trade

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Foreign Trade

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

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

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

  5. Who are our main Trading Partners?

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

  7. 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.

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

  9. 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

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

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

  12. 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.

  13. 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.

  14. 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.

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

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

  17. What is the Balance of Invisible Trade? • Invisible Exports – Invisible Imports

  18. What is the Balance of Payments? • Total Exports – Total Imports

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

  20. 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.

  21. 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.

  22. 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.

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

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

  25. Continued… • Balance of Payments • Total Exports (540+620) €1160 • Less Total Imports (400+260) € 660 • Surplus €500

More Related