International Trade
What is a tariff?
A tax on imports.
Who sets interest rates in the eurozone?
European Central Bank (ECB)
What does APR stand for?
Annual Percentage Rate
Deposit - saving
What is the rate of corporation tax in Ireland?
12.5%
Visible exports - Visible imports
1 economic benefit and 1 social benefit
Economic - free trade, larger market, more choice for consumers.
Social - free travel, health insurance card
How long does a business have to repay medium-term finance?
1-5 years
2 reasons for saving
Unforeseen events
large purchases
retirement
Who collects tax in Ireland?
Revenue Commissioners
Give 3 reasons why MNCs choose to set up in Ireland.
Low corporation tax
Member of EU
English speaking
Highly educated workforce
Paying EU fees, following EU legislation, loss of culture, different languages
Explain the difference between leasing and hire purchase.
Leasing = renting
Hire purchase = pay an initial deposit, installments and own after final payment
3 financial institutions to save
Revolut
Commercial bank
Credit union
Post office
Which one is legal - tax evasion or tax avoidance?
Tax avoidance
Give 3 reasons why Ireland export goods and servcies.
- Creates jobs.
- Increased tax revenue.
- Demand for Irish goods and services.
Role of European Commission
Day to day running of the EU, propose new laws.
What is collateral?
Collateral is something a financial institution will look for as security incase the loan cannot be repaid.
Name the tax earned on interest earned on savings
Tax on profits earned from the sale of assets
Explain the term import substitution
Replacing an import with a domestic product
Give 2 benefits of being a member of the Eurozone
No exchange rate fees, easier to compare prices
3 things a bank will look for when applying for a loan
Proof of ID, PPS number, Proof of address, Payslips
3 factors to consider before saving
Liquidity
Interest
Risk
Give 2 examples of a direct tax.
PAYE
USC
PRSI