In December 2013 the WTO reached agreement with member countries in relation to reducing barriers to free trade - Leaving Cert Economics - Question 7 - 2014

1. Tariffs: Tariffs are taxes imposed on imported goods. They increase the cost of foreign products, making domestic goods more competitive in comparison.

2. Quotas: Quotas are limits on the quantity of a particular good that can be imported. They protect local industries by restraining foreign competition.

1. Protect Domestic Industries: Countries often impose barriers to shield local industries from international competition. This allows new or struggling industries to grow without being overwhelmed by foreign products.

2. Protect Employment: By limiting imports, countries can help preserve local jobs that might be threatened by cheaper foreign alternatives.

An 'open economy' refers to an economy that engages freely in international trade. Ireland's economy is characterized by high levels of exports and imports, allowing it to benefit from global trade. This openness facilitates competition, innovation, and economic growth.

1. Increased Employment: As Irish firms increase production to meet higher demand from exports, they may hire more workers, reducing unemployment rates.

2. Economic Growth: Higher exports can lead to increased national income, boosting overall economic growth and improving the standard of living.

1. Value of the Euro: If the Euro weakens against other currencies, Irish goods become cheaper for foreign buyers, potentially increasing export volumes.

2. Production Costs: Reducing costs associated with production, such as through efficiency improvements or lower wage rates, can make Irish products more attractive in global markets.

The initials EU stand for the European Union, which is a political and economic union of member states located in Europe.

1. Larger Market: With more member countries, Irish businesses have greater access to a larger market, which can increase sales and profitability.

2. Increased Competition: More countries in the EU may lead to increased competition for Irish firms, which can drive innovation and efficiency.

3. Investment Opportunities: EU expansion can attract foreign direct investment into Ireland, as firms look to leverage Ireland's access to the broader EU market.