Challenges of Global Trade • It can be difficult for Irish companies to compete against huge global companies. • Transport is challenging and costly, especially as Ireland is an island nation.
• The different languages spoken around the world mean that advertisements and packaging need to be translated. Companies have to employ people with the necessary language skills, adding to costs.
• Currency exchange can increase costs for a business.
• It can be more difficult to check the credit rating of foreign customers, so businesses may have increased bad debts expense.
• Lower-priced goods imported to Ireland can negatively affect the sales, profits and ultimately the survival of Irish businesses.
A Irish export
In groups, go to page 231 of your Activities and Accounts Book to identify the possible benefits and challenges of exporting an Irish product of your choice.
GLOBAL BUSINESS
As we know, the globalisation of trade allows businesses to operate in different countries. Many global businesses (also known as multinational companies, or MNCs) produce parts of their product in different locations. For example, Honda designs the engines for its cars in Japan, assembles the cars in Pakistan and makes spare parts in China.
