The Irish economy is an open economy which relies on exports to help economic growth - Leaving Cert Economics - Question 8 - 2010

1. Job creation: Increased exports lead to higher demand for goods produced in Ireland, resulting in job creation within various industries.

2. Increased GNP/Economic Growth: The revenue generated from exports contributes significantly to GNP, allowing for reinvestment into the economy and fostering further growth.

3. Attract investment: A strong export performance can enhance international confidence in the Irish economy, encouraging foreign direct investment and stimulating further economic development.

An invisible import is a service or expenditure incurred by residents of a country for services provided by foreign entities, which are not tangible goods that can be seen.

1. Foreign travel services: When residents go abroad for holidays and spend on hotels or services.

2. Foreign banking services: Payments made for services by banks in foreign countries.

1. Protect domestic industries: Governments may restrict imports to protect new or struggling domestic industries from foreign competition, helping them to establish themselves in the market.

2. Protect employment: By limiting imports, governments aim to safeguard local jobs that may otherwise be threatened by cheaper foreign goods.

1. Exports dearer: As the euro strengthens against the pound, Irish goods become more expensive for UK consumers, potentially leading to a reduction in demand for these goods.

2. Reduced demand/sales: Irish firms may experience decreased sales and may need to consider adjusting their pricing strategies to remain competitive.

1. Imports cheaper: The increased value of the euro means that Irish consumers pay less for UK imports, making them more appealing and accessible.

2. Decreased inflation: Lower import costs can lead to overall decreased inflation rates in Ireland, improving purchasing power for consumers.

1. Decreases: As exports decline due to higher prices, firms may face decreased revenues, potentially leading to layoffs or reduced hiring.

2. Job shifts: Companies may shift workers to sectors less impacted by the changes in exports and imports, but overall employment may still decrease in manufacturing sectors most affected.