Photo AI

4. (a) Explain what is meant by the term ‘Open Economy’ - Leaving Cert Business - Question 4 - 2008

Question icon

Question 4

4.-(a)-Explain-what-is-meant-by-the-term-‘Open-Economy’-Leaving Cert Business-Question 4-2008.png

4. (a) Explain what is meant by the term ‘Open Economy’. An open economy is one in which individuals and businesses can engage in trade of goods and services. This... show full transcript

Worked Solution & Example Answer:4. (a) Explain what is meant by the term ‘Open Economy’ - Leaving Cert Business - Question 4 - 2008

Step 1

Explain what is meant by the term ‘Open Economy’.

96%

114 rated

Answer

An open economy is one in which individuals and businesses can engage in trade of goods and services. This includes both importing and exporting these goods, as well as borrowing and lending in global financial markets. A significant measure of an economy's openness is reflected in the GDP percentage that is devoted to imports and exports.

Step 2

Outline its possible impact on Ireland’s economic development.

99%

104 rated

Answer

The implications of an open economy on Ireland’s economic development are multifaceted. It can fuel economic growth by creating employment opportunities, generating foreign currency for the country, and providing additional revenue for the government through taxes. Furthermore, an open economy facilitates the import of essential raw materials and finished goods, which can significantly enhance the standard of living. With a wider array of choices available, consumers benefit from potentially lower prices as competition increases.

Join the Leaving Cert students using SimpleStudy...

97% of Students

Report Improved Results

98% of Students

Recommend to friends

100,000+

Students Supported

1 Million+

Questions answered

;