Photo AI
The table below shows Ireland’s exports and imports with other countries / regions - Leaving Cert Economics - Question 8 - 2009
Question 8
The table below shows Ireland’s exports and imports with other countries / regions. Countries / Regions | | Visible Exports € million | Visible Import... show full transcript
Worked Solution & Example Answer:The table below shows Ireland’s exports and imports with other countries / regions - Leaving Cert Economics - Question 8 - 2009
Step 1
Calculate Ireland's Balance of Trade with each country / region (A, B, D above) and state whether it is a surplus or deficit in each case.
Answer
For each country:
-
United Kingdom:
- Balance of Trade = Visible Exports - Visible Imports = 14,500 - 17,000 = -2,500 (Deficit)
-
Other EU countries:
- Balance of Trade = 45,000 - 20,000 = +25,000 (Surplus)
-
Rest of World:
- Balance of Trade = 18,000 - 16,000 = +2,000 (Surplus)
Thus, the balances are:
- United Kingdom: Deficit
- Other EU countries: Surplus
- Rest of World: Surplus
Step 2
Distinguish between visible exports and visible imports and state one example in each case.
Answer
Visible Exports: Refers to goods that are produced domestically and sold abroad. An example is the sale of Irish beef abroad.
Visible Imports: Refers to goods that are purchased from foreign producers and brought into the country. An example is the purchase of foreign cars.
Step 3
State and explain two reasons why exports are important for the Irish economy.
Answer
-
Job Creation: Exports can increase demand for goods produced in Ireland, which can lead to job creation in various sectors.
-
Increased GNP / Economic Growth: The revenue generated from exports boosts the national income and can contribute to overall economic growth.
Step 4
State and explain two reasons why imports are important for the Irish economy.
Answer
-
More Choice for Consumers / Higher Standard of Living: Imports provide consumers with access to a wider variety of goods and can enhance their living standards.
-
Raw Materials Unavailable in Ireland: Certain raw materials not produced in Ireland must be imported to support local industries, such as oil and certain fruits.
Step 5
State and explain the possible economic effect which the above change may have on each of any three of the following: Ireland’s exports to the UK; Ireland’s imports from the UK; Employment in Ireland; Citizens in the Republic shopping in Northern Ireland.
Answer
-
Ireland's Exports to the UK: As the Euro increases in value compared to the pound, Irish exports may become more expensive for UK buyers, potentially reducing demand and leading to lower export revenues.
-
Ireland's Imports from the UK: The increase in the Euro’s value means that UK imports are cheaper, which could lead to an increase in demand for imports from the UK, benefiting consumers.
-
Employment in Ireland: If exports to the UK decline due to higher prices, it may lead to job losses in sectors reliant on these exports, such as manufacturing.