Leaving Cert Business International Trade: Read the following infographic a

Read the following infographic and answer the questions which follow - Leaving Cert Business - Question 7 - 2019

Question 7

Read the following infographic and answer the questions which follow. Name the region to which Ireland exports most of its goods. (i) Calculate the Balance of Trad... show full transcript

Worked Solution & Example Answer:Read the following infographic and answer the questions which follow - Leaving Cert Business - Question 7 - 2019

Step 1

Name the region to which Ireland exports most of its goods.

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Answer

The region to which Ireland exports most of its goods is the Rest of EU.

Step 2

Calculate the Balance of Trade. State if it is a Surplus or Deficit.

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Answer

To calculate the Balance of Trade, we subtract the total value of imports from the total value of exports.

Given:

Exports: €122 billion
Imports: €79 billion

Calculation:

$ext{Balance of Trade} = ext{Exports} - ext{Imports} = 122 - 79 = 43 ext{ billion}$

Thus, the Balance of Trade is €43 billion, indicating a Surplus.

Step 3

Name one import above which could not be substituted with a home-produced good.

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Answer

One import that could not be substituted with a home-produced good is coffee or wine.

Step 4

Outline one reason for your answer.

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Answer

The reason is that Ireland does not have the climate to grow coffee beans or grapes, making it impossible to produce these goods locally.

Read the following infographic and answer the questions which follow - Leaving Cert Business - Question 7 - 2019

Worked Solution & Example Answer:Read the following infographic and answer the questions which follow - Leaving Cert Business - Question 7 - 2019

Name the region to which Ireland exports most of its goods.

Calculate the Balance of Trade. State if it is a Surplus or Deficit.

Name one import above which could not be substituted with a home-produced good.

Outline one reason for your answer.

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