Answer all parts of this question: (A) Visible Exports € 1,138m Visible Imports € 1,235m (i) From the above information, calculate the Balance of Trade - Leaving Cert Business - Question 3 - 2009

Since the Balance of Trade is € -97 million, it indicates a deficit.

The Balance of Payments (BoP) is an important economic indicator that measures the difference between the value of total exports (both visible and invisible) and the value of total imports (both visible and invisible) within a given period.

1. It represents the overall financial transactions between a country and the rest of the world.
2. The Balance of Payments is expressed as a surplus (when exports exceed imports) or as a deficit (when imports exceed exports).

1. Domestic market too small: Many Irish firms engage in international trade to expand their market reach beyond national borders to gain new customers and increase sales.

2. To increase sales and profits: By accessing international markets, firms can potentially increase their revenue streams and profits by tapping into diverse consumer bases.

1. High cost base: Irish firms may face high costs related to labor and insurance, which can affect their competitiveness abroad.

2. Geographical/climatic differences: Firms may have to adapt their products or services to cater to different geographical locations and climatic conditions.

1. Corporation Tax: An increase in corporation tax can lead to reduced business investments as companies might have less retained earnings to reinvest in growth.

2. Excise Duty: Raising excise duty on products like tobacco and alcohol may decrease demand for such items, resulting in lower consumption and potentially affecting related sectors in the economy.