Leaving Cert Business The EU: Institutions & Policies: Using the above information, cal

Using the above information, calculate the Balance of Trade - Leaving Cert Business - Question A - 2016

Question A

Using the above information, calculate the Balance of Trade. Show your workings. State whether it is a surplus or a deficit. List two examples of goods imported in... show full transcript

Worked Solution & Example Answer:Using the above information, calculate the Balance of Trade - Leaving Cert Business - Question A - 2016

Step 1

Using the above information, calculate the Balance of Trade. Show your workings.

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Answer

To calculate the Balance of Trade, we use the formula:

$\text{Balance of Trade} = \text{Visible Exports} - \text{Visible Imports}$

Plugging in the values:

Visible Exports: €4,800m
Visible Imports: €3,700m

Thus, the calculation becomes:

$\text{Balance of Trade} = €4,800m - €3,700m = €1,100m$

This means we have a positive balance which indicates a trade surplus.

Step 2

State whether it is a surplus or a deficit.

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Answer

Since the Balance of Trade calculated is €1,100m, it indicates a surplus.

Step 3

List two examples of goods imported into Ireland.

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Answer

Cars
Lemons

Step 4

Outline two reasons why goods are imported into Ireland.

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Answer

Production Limitations: Ireland does not produce certain commodities like tropical fruits, making imports essential for variety.
Consumer Choice: There is a demand for diverse products which are not locally available, thus consumers prefer to import goods.

Using the above information, calculate the Balance of Trade - Leaving Cert Business - Question A - 2016

Worked Solution & Example Answer:Using the above information, calculate the Balance of Trade - Leaving Cert Business - Question A - 2016

Using the above information, calculate the Balance of Trade. Show your workings.

State whether it is a surplus or a deficit.

List two examples of goods imported into Ireland.

Outline two reasons why goods are imported into Ireland.

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