ECONMICS AND FOREIGN TRADE
1 Definition of an Economy: money being spent within a group of people, needs
vs wants. Economics- "study of how limited resources are used to satisfy our
needs and wants" - CHOICE
2 Economic System: way that society / state organises resources to best satisfy
needs and wants of society. Free Market, Mixed, Centrally Planned.
3 Economic Growth (more earned by economy than last year) and
Development: (improve infrastructure, birth rate, etc to allow growth).
4 Foreign Trade: benefits- better choice, earn foreign currency, better
international relations. Balance of Trade, Balance of Payments, visible and
invisible imports / exports,
5 Export Assistance- Bord Trachtala. Difficulties Exporting- language, currency,
customs, information, etc. Import Substitution, Embargo, Trading Partners,
Bilateral Trade.
5 Signs of a successful economy: low inflation (CPI), high economic growth,
low unemployment.
6 Rate of exchange: calculations, effects on imports and exports