Using the above information, calculate the Balance of Trade - Leaving Cert Business - Question A - 2012

The Balance of Trade calculated is €200 million, which indicates a surplus because the value of exports exceeds that of imports.

Visible exports are tangible products that are sold by a country to international buyers. These exported goods contribute directly to the country’s revenue and the overall health of its trade balance, helping to generate foreign currency inflows.

Two examples of Irish agricultural visible exports are:

• Beef
• Butter

1. Larger market access: Engaging in international trade allows Irish businesses to reach a more extensive customer base, significantly increasing sales opportunities compared to a solely domestic market.

2. Increased competitiveness: By trading internationally, Irish businesses can improve their efficiency and productivity, which can lead to better quality products and services.

1. Decreased financial burden: Lower mortgage interest rates lead to reduced monthly payments, which can alleviate financial stress for households and improve disposable income.

2. Increased consumer spending: With lower mortgage payments, families may have more disposable income available for other expenses, potentially boosting overall consumer spending in the economy.

1. Decreased consumer demand: An increase in VAT may lead consumers to reduce their spending, as higher prices can deter purchases, negatively impacting sales for retailers.

2. Increased operational challenges: Retailers may face additional administrative burdens and costs associated with adjusting pricing structures and accounting for the new VAT rate.