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In June 2016 the UK voted to leave the EU in what has become known as BREXIT - Leaving Cert Economics - Question c - 2017
Question c
In June 2016 the UK voted to leave the EU in what has become known as BREXIT. (i) What do the letters EU stand for? (ii) Discuss one economic effect which the exit... show full transcript
Worked Solution & Example Answer:In June 2016 the UK voted to leave the EU in what has become known as BREXIT - Leaving Cert Economics - Question c - 2017
Step 1
Step 2
Discuss one economic effect which the exit of the UK from the EU may have on Irish firms exporting to the UK.
Answer
One economic effect of Brexit on Irish firms exporting to the UK could be reduced sales or profits due to potential tariffs and increased costs. If tariffs are introduced, Irish firms may face higher costs when exporting goods, which could lead to a decrease in competitiveness in the UK market. Consequently, this may result in reduced market share or even closure of some businesses that rely heavily on UK exports.
Step 3
Discuss one economic effect which the exit of the UK from the EU may have on Tourism between Ireland and the UK.
Answer
The economic effect on tourism between Ireland and the UK may depend on the value of the euro against the sterling. If the euro weakens compared to the sterling, it may discourage UK tourists from visiting Ireland, as their purchasing power would decrease. Conversely, if the euro strengthens, it might encourage Irish tourists to visit the UK, thus affecting overall tourism revenues in both regions.