SOLUTIONS TO SAMPLE
SHORT QUUESTIONS
Sample Short Exam Question
Sample Short Exam Question
Visible Imports refer to the physical goods
that come into a county e.g cars being
imported from Germany. Money leaves
Ireland as result
Invisible Exports Refer to the Irish owned
services sold from Ireland to other
countries. E.g The Script playing a concert in
America. The result is money coming to the
country
Sample Short Exam Question
Sample Short Exam Question
Sample Short Exam Question
Sample Short Exam Question
1. Larger Market – Irish
business want to reach more
customers so they see their
good to customers in other
countries
2. Profit Generation – Irish
businesses can generate more
profits if they are reaching
more customers and will also
become more competitive
Examples = BEEF / ORGANIC FOODS / MEDICAL
EQUIPMENT
Sample Short Exam Question
1. Raw Materials – Ireland does
not have the ability to produce
certain raw materials and need
to import these in order to
continue production
2. Consumer Choice –
Consumers demand goods and
services which cant be
produced in Ireland e.g citrus
fruits
Examples – LEMONS, ORANGES, OIL
Sample Short Exam Question
Rest of EU
V. exports = 122bn
V.Imports = 79bn
Surplus =
43bn
Coffee
Ireland does not have the correct climate to grow coffee beans
Sample
Short
Exam
Question
MAY
AUGUST
Import Substitution refers to the production by a domestic country of
good/services which are traditionally imported. The results are a saving
of money which may be used to pay for imports and a degree of self
sufficiency achieved
Sample
Short Exam
Question
The Transfer of ownership of a business or industry from the
public or government ownership to private ownership. The
Selling of a state owned industry to a private owner.
Income for the government is generated. Examples include Irish
Sugar or Eircom
Deregulation refers to the removal of regulations , restrictions and
restrictions placed on a particular industry. For example the removal
of a limit on the number of licences allowed for taxi drivers.
Sample
Short Exam
Question
-35 bn
65bn
140bn
Invisible exports refer to services produced and provided by Irish Businesses
and Industries and sold to customers in other countries outside of Ireland
A holiday to Galway in the west of Ireland sold
in America
The efforts made by a domestic country/government
to shield, protect and promote industries and
businesses in their own country. This can be achieved
by placing taxes or using other restrictions on
imports.
The World Trade Organization (WTO) deals with the global
rules of trade between nations. Its main function is to
ensure that trade flows as smoothly, predictably and freely
as possible.
Trading blocks are groups of
countries who form trade
agreements between themselves.
Trading blocks can include. Free
trade areas – elimination of tariffs
between members of the trading
block.
EXAMPLES
Sample
Short Exam
Question
Services produced by a foreign owned business or
industry and sold in Ireland. Results in money
leaving the country.
Sample
Short Exam
Question
A quota refers to a limited quantity placed on the importation of certain
goods or services from a foreign country.
A tariff refers to a tax placed on the importation and selling of goods and
services by foreign owned businesses. This pushes up the price paid by
a consumer.
Both a tariff and a quota are known as Barriers To Trade and their
implementation is seen as a policy of protectionism.
Sample
Short Exam
Question
An open Economy refers to an economy which engages in
trade with other countries – the importing and exporting
of goods and services between countries.
Larger Customer Reach – larger markets and customer
numbers are reached which results in increased
business for the Irish industries participating in trade.
Sample
Short Exam
Question
The European Single Market, Internal Market or Common
Market is a single market which seeks to guarantee the
free movement of goods, capital, services, and labour
Also known as a free trade area which have no barriers to
trade among member countries.