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'Visible exports were €45,537 million in the second quarter of 2017 while visible imports were €22,178 million in the same period.' (Source: CSO, 2017) (i) Explain each of the underlined terms - Leaving Cert Economics - Question b - 2018
Question b
'Visible exports were €45,537 million in the second quarter of 2017 while visible imports were €22,178 million in the same period.' (Source: CSO, 2017) (i) Expl... show full transcript
Worked Solution & Example Answer:'Visible exports were €45,537 million in the second quarter of 2017 while visible imports were €22,178 million in the same period.' (Source: CSO, 2017) (i) Explain each of the underlined terms - Leaving Cert Economics - Question b - 2018
Step 1
Explain each of the underlined terms.
Answer
Visible exports refer to the sale of Irish goods abroad to consumers located outside Ireland. These are tangible products that can be physically counted and traded across borders.
Visible imports, on the other hand, are the purchase of foreign goods from abroad, which are consumed by Irish consumers. This involves bringing goods into the country from international markets.
Step 2
Name one example of a visible export and a visible import for the Irish economy.
Answer
An example of a visible export is the sale of Irish beef abroad. This showcases a specific product that Ireland produces and exports.
A visible import example is the purchase of foreign cars, indicating goods that are brought into Ireland from other countries.
Step 3
Outline two economic advantages for the Irish economy if exports are greater than imports.
Answer
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Employment Creation: If exports exceed imports, it leads to increased demand for goods produced in Ireland, creating more job opportunities and reducing unemployment rates.
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Increased GNP / Economic Growth: The influx of income from exports contributes to the economy, generating more disposable income and leading to higher consumption within the domestic market, which again fuels overall economic growth.