Chapter 18: International Trade and Competitiveness
Explainer, notes, worksheet and data.
What you'll learn in this chapter
- interpret Irish trade patterns (goods vs services) and evaluate benefits/costs for Ireland
- describe the Balance of Payments (current, capital and financial accounts)
- explain what determines competitiveness
- apply comparative advantage to explain trade specialisation
- debate free trade vs protectionism vs fair trade arguments
- explain exchange rate determinants and impacts on the Irish economy
- evaluate trade agreements and global institutions in managing trade
Core ideas
Trade lets countries specialise and expand consumption possibilities, but it can also expose the economy to external shocks. You’ll connect competitiveness and exchange rates to exports/imports, employment and living standards.
Exam focus
- definitions: visible/invisible trade, BOP, competitiveness
- applied questions: how a euro appreciation/depreciation affects exports, imports and inflation
- evaluation: protectionism vs free trade, using Irish examples and clear trade-offs