Business Studies · 3rd Year · Globalisation and International Trade · 2.º Período

International Trade

Understanding why countries trade, focusing on Ireland's major imports and exports.

TL;DR:International Trade is vital for a small, open economy like Ireland. This topic introduces students to the concepts of imports and exports, and the reasons why nations trade, such as the lack of natural resources or the need for specialized skills. Students explore Ireland's key trading partners, including the UK, USA, and EU members, and identify our major export sectors like pharmaceuticals, agri-food, and technology. This aligns with Strand 3: Our Economy, focusing on Ireland's place in the global market.

• NCCA Curriculum Specifications
• Strand 3: Our Economy, LO 3.5
• Strand 3: Our Economy, LO 3.6

About This Topic

International Trade is vital for a small, open economy like Ireland. This topic introduces students to the concepts of imports and exports, and the reasons why nations trade, such as the lack of natural resources or the need for specialized skills. Students explore Ireland's key trading partners, including the UK, USA, and EU members, and identify our major export sectors like pharmaceuticals, agri-food, and technology. This aligns with Strand 3: Our Economy, focusing on Ireland's place in the global market.

Students also examine the mechanics of trade, including the impact of exchange rates and the role of organizations like the World Trade Organization (WTO). Understanding these dynamics is essential for grasping how global events affect local business success. This topic comes alive when students can physically model the patterns of global supply chains and trade flows.

Key Questions

1. Why does Ireland need to import goods?
2. What are Ireland's main export industries?
3. How do exchange rates affect international trade?

Watch Out for These Misconceptions

Common Misconception

Students often think that a country should try to export everything and import nothing.

What to Teach Instead

Explain the concept of 'comparative advantage' and the reality that no country has all the resources it needs. A collaborative investigation into the components of a smartphone shows how many countries must cooperate to create a single product.

Common Misconception

There is a common belief that trade only involves physical goods.

What to Teach Instead

Highlight the massive importance of 'invisible' trade (services) to the Irish economy, such as software development and financial services. Peer teaching sessions where students explain different service exports help reinforce this.

Active Learning Ideas

Simulation Game

The Trading Game

Assign groups different 'resources' (paper, scissors, rulers) and a 'product' to manufacture. Some groups will have plenty of resources but no tools, while others have tools but no resources, forcing them to trade to succeed.

50 min·Small Groups

Gallery Walk

Made in Ireland

Students research and create posters for iconic Irish exporters (e.g., Kerrygold, Ryanair, or Stripe). They display these around the room, and peers use a checklist to identify which sector each business belongs to.

30 min·Small Groups

Think-Pair-Share

The Currency Shift

Provide a scenario where the Euro strengthens against the Dollar. Students work in pairs to predict if this is good or bad news for an Irish company selling cheese to New York and an Irish person buying a laptop from a US website.

20 min·Pairs

Frequently Asked Questions

What are Ireland's biggest exports?

Ireland's largest exports include pharmaceutical products, medical devices, organic chemicals, and computer software. We are also a major exporter of food and drink, particularly dairy and beef products, to markets all over the world.

How does a weak Euro affect Irish businesses?

A weak Euro makes Irish exports cheaper and more competitive in non-Euro markets like the USA or UK. However, it also makes imports (like oil or raw materials) more expensive, which can increase production costs for Irish firms.

What is the difference between a trade surplus and a trade deficit?

A trade surplus occurs when the value of a country's exports exceeds the value of its imports. A trade deficit happens when a country spends more on imports than it earns from exports. Ireland typically maintains a strong trade surplus due to high-value exports.

What are the best hands-on strategies for teaching international trade?

Trade simulations are the most effective way to teach this. By giving students unequal resources and a goal to achieve, they experience the necessity of negotiation and exchange first-hand. This active approach makes the abstract concepts of 'balance of trade' and 'protectionism' much more concrete and memorable.