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Chapter 29 - International Trade - Coggle Diagram
Chapter 29 - International Trade
reasons for irish business trading internationally
natural resources
climate
standard of living
Reasons for exports
Reasons for imports
profitability
costs
spreading risk
Import Substitution
This occurs when foreign imports are replaced with domestically produced goods and services
Reasons a Gov Introduces
Barriers to Trade (Protectionism)
Raise Revenue
Revenue from tariffs
National Security
Protect industries of importance e.g electricity and steel supplies
Domestic Jobs
To protect domestic jobs
New Industries
Gives them time to grow and benefit from economies of scale
Consumer Protection
From unsafe products, the government may ban certain products. E.g. The EU restricted poultry imports after an outbreak of avian flu.
Measuring International Trade
Balance of Trade
Visible Exports - Visible Imports
Balance of Payments
Total Exports - Total Imports
How to Overcome Balance of Trade Deficit
Reduce Imports
Raw Materials
Use more raw materials available from the domestic market
Increase Exports
Free Trade
Enables countries to buy and sell each other's goods and services without barriers to trade such as tariffs
Free trade
agreement
trading bloc
elimate barriers
ict
lower cost
marketing
faster commincations
increased sales
decison making
barriers to trade
tarriff
quota
embargo
subsidy
administrative regulations