CHAPTER 35 – INTERNATIONAL TRADE AND GLOBALISATION GLOBAL TRADE
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Global trade is the exchange of goods and services between different countries.
In chapter 10, we learned that globalisation is how the countries of the world exchange products, services and ideas. The development of technology and the reduction of trade barriers have made globalisation possible.
Global trade (or international trade) is the import and export of goods and services between different countries.
IRELAND AND GLOBAL TRADE Global trade presents a number of benefits and challenges to the Irish economy.
Benefits of Global Trade • Foreign trade brings revenue into the country from Irish goods and services sold abroad. • Irish consumers have a greater choice of goods and services.
• Businesses have access to supplies of essential raw materials that are not available in Ireland (e.g. oil).
• The Irish market is too small for many large businesses to depend on, so they must sell internationally to survive and expand.
• Increased production means more jobs are created and the standard of living rises.
• Competition from foreign companies encourages Irish businesses to innovate, reduce prices and increase quality.
