Global trade is the import and export of goods and services between different countries.
Benefits of Global Trade for Ireland
- 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 the country. 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 which helps businesses but it also means that the government can reduce their expenditure on benefits which is good for the Economy.
Challenges of Global Trade for Ireland
- It can be difficult for Irish companies to compete against huge global companies.
- Transport is challenging and costly, especially since Ireland is an Island.
- The different languages mean that advertising and packaging need to be translated and companies will have to employ people with the necessary language skills, adding to costs.
- Currency exchange can increase costs for a business.