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Irish people attending the Olympic Games in London 2012 is an example of an invisible import for Ireland - Leaving Cert Economics - Question b - 2012
Question b
Irish people attending the Olympic Games in London 2012 is an example of an invisible import for Ireland. (i) Explain the underlined term and state one other exampl... show full transcript
Worked Solution & Example Answer:Irish people attending the Olympic Games in London 2012 is an example of an invisible import for Ireland - Leaving Cert Economics - Question b - 2012
Step 1
Explain the underlined term and state one other example of an invisible import.
Answer
An 'invisible import' refers to services or intangibles purchased from other countries that result in money flowing out of the economy without a physical product being exchanged. An example of an invisible import is Irish people using foreign financial services, like banking or insurance, from international companies.
Step 2
Discuss three benefits to the Irish economy of increasing exports.
Answer
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Employment Creation: Exports lead to increased demand for goods produced in Ireland, thereby creating more jobs within various sectors of the economy.
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Increased GNP / Economic Growth: Revenues from exports boost the national income, contributing to higher standards of living and overall economic development.
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Increased Sales / Profits: Local businesses often expand their operations by selling to international markets, which can enhance their profitability and allow for reinvestment in further growth.