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Explain two reasons why Ireland trades with other countries - Junior Cycle Business Studies - Question 12 - 2023
Question 12
Explain two reasons why Ireland trades with other countries. 1. 2.
Worked Solution & Example Answer:Explain two reasons why Ireland trades with other countries - Junior Cycle Business Studies - Question 12 - 2023
Step 1
To generate funds to pay for imports
Answer
Ireland trades with other countries to generate funds necessary for purchasing imports. Since Ireland has a small domestic market, engaging in international trade allows the country to earn revenue from exporting goods and services, which can then be utilized to buy essential imports that support the economy.
Step 2
To acquire goods/services that are not available domestically
Answer
Another reason for Ireland's trade is to acquire goods or services that are either unavailable or less efficient to produce domestically. For instance, items like oil, coffee, and bananas cannot be sourced within Ireland, necessitating international trade to meet consumer demand and enhance market choice.