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13. (i) Explain the term Visible Imports - Leaving Cert Business - Question 13 - 2017
Question 13
13. (i) Explain the term Visible Imports. (ii) Explain the term Invisible Exports.
Worked Solution & Example Answer:13. (i) Explain the term Visible Imports - Leaving Cert Business - Question 13 - 2017
Step 1
Explain the term Visible Imports.
Answer
Visible imports refer to the physical goods and products that are purchased by a country from foreign suppliers. This transaction involves a financial outflow, where money leaves the importing country to pay for these products.
For example, when an Irish supermarket imports fruit from Spain, the supermarket is engaging in visible imports as it acquires tangible goods that cross national borders. Another example is a student who imports a Debs dress from America, which also represents a visible import as it is a physical item being brought into the country.
Step 2
Explain the term Invisible Exports.
Answer
Invisible exports involve the sale of services rather than physical goods. In this case, money is generated for the exporting country as it provides services to customers or businesses in other countries.
For instance, when an Irish PR company sells its services to a business in the U.K., it is engaging in invisible exports, as the transaction is based on service provision rather than physical products. Additionally, American tourists staying in an Irish hotel in Cork represent another example of invisible exports, since the services provided to these tourists contribute to the income that flows into the Irish economy.