unit seven key words

open economy

an economy that allows the flow of goods, capital and labour across its border, firms in an open economy trade their goods internationally

exporting

businesses sell good and services abroad, Ireland earns money off trade, positive figure in the balance of payments

importing

businesses purchase goods from abroad, money is leaving Ireland, negative figure in the balance of payments

visible exports

goods sold by Irish businesses abroad, injection of money into the economy

visible imports

goods are purchased by Irish businesses abroad, leakage of money from he economy

invisible exports

services made by irish businesses sold abroad , injection of money into the economy

balance of payments

the difference between the total exports and the total imports in a country over a specific timeframe

balance of trade

the total exports of country minus the total imports

why does Ireland import

• larger consumer choice

• unsuitable climate

• lack of skills , cars

why does Ireland export

• small domestic market

• economies of scale

• reduces dependency on one market

• diversify business

protectionism

involves implementing trade barriers to foreign business to insulate indigenous business from completion , restricts imports and applies tariffs

tariff

a tax on imports making them dear than domestic goods

quota

a limit on the amount of a good imported into the country , reduces completion protecting domestic goods

embargo

a complete ban on he importation of a certain good or any goods from a certain country , can cause retaliation , politics , fireworks Ireland

subsidies

grants that make domestic goods cheaper than imports increasing sales

free trade

this is the ability of countries to trade their goods, capital and labour with no barrier or restrictions

trading bloc

a free trading zone , where countries trade with no restrictions on international trade

common market

the free movement of goods, services, labour and capital

benefits of free trade

consumer has more choice and can get better quality ,

businesses get cheaper raw materials and lower priced exports

economy earns a forge in currency , more employment

globalisation

one common world market , same marketing mix , using similarities in all countries , one challenge is the mm may need to be adapted , but business can get economies of scale and are less dependent on domestic market

deregulation

introducing competition to domestic firms/monopolies , to lower prices and creat choice

single European market

there is no fiscal barriers to trade between members and with free movement of goods, capital and labour, each country can trade In another members state as it is is there own

European commision

main body responsible for day to day running the EU it is responsible for proposing and implementing new EU laws and the EU budget

council of the European Union

this institiuiton constricts of relevant member states ministers to vote on and legislate new EU law and the EU budget

court of auditors

monitors all EU budgets are spent in an appropriate and efficient manner by all member states that has received a grant and for the purpose intended

european court of justice

the court ensures EU law are obeyed in member nations and are implented correctly

directives

a law that each member state must implement but each government is free to decide the manner of the law implementation (all 27/not immediate)

regulations

law that will immediately come to force within all EU states and take preference over national laws simultaneously they are self executing (al

EU decision

are laws that are binding on specific

lobbying

a special interest group trying to influence