Name one example of a developed economy that you have studied - Leaving Cert Geography - Question 7B - 2020

1. Strong Infrastructure: Germany has a well-developed transportation and communication network, making it accessible for tourists and investors.

2. Economic Stability: A stable economy encourages investment and attracts international tourists, boosting the tourism sector.

3. Cultural Heritage: Germany’s rich history and cultural landmarks attract millions of tourists every year, contributing significantly to the growth of tourism.

4. Events and Exhibitions: Hosting international trade fairs and exhibitions draws business tourists, enhancing the financial services sector.

5. International Business Hub: Major cities like Frankfurt are financial hubs, attracting global banks and companies, increasing demand for financial services.

6. Government Support: Government policies that promote tourism and financial services contribute to their growth.

Tourism creates jobs in various sectors, such as hospitality, retail, and transportation, leading to lower unemployment rates and improved living standards. Additionally, financial services help stimulate economic growth by facilitating investments and providing critical financial resources for businesses.

One major problem caused by tourism is environmental degradation. Increased tourist activities can lead to pollution, habitat destruction, and strain on local resources, negatively impacting the ecosystem. Similarly, financial services can contribute to economic inequality, as profits may not be equitably distributed, leading to wealth concentration among a small demographic.