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Cadden Ltd are planning to export their products to the United Kingdom (UK) and the European Union (EU) - Junior Cycle Business Studies - Question (iii) - 2022
Question (iii)
Cadden Ltd are planning to export their products to the United Kingdom (UK) and the European Union (EU). Outline two benefits of International Trade for Irish busine... show full transcript
Worked Solution & Example Answer:Cadden Ltd are planning to export their products to the United Kingdom (UK) and the European Union (EU) - Junior Cycle Business Studies - Question (iii) - 2022
Step 1
Increased sales/profits
Answer
The Irish market is relatively small, and by exporting, Irish businesses can significantly increase their sales and profits. Accessing larger markets such as the UK and EU allows these companies to tap into new customer bases, enhancing their revenue potential.
Step 2
Lower costs
Answer
Irish businesses often need to increase production to meet the new demand from international markets. By producing more, they can take advantage of economies of scale, which lowers the average cost of production per unit. This means that as they grow, the costs associated with producing each item decreases, enabling them to improve their profitability.