From the above information, calculate the Balance of Trade - Leaving Cert Business - Question A - 2009

Since the Balance of Trade is negative (-€97 million), it indicates a deficit.

The Balance of Payments is a comprehensive record of a country's economic transactions with the rest of the world over a specified period. It includes all trade in goods, services, and capital. The Balance of Payments consists of two main accounts: the current account, which deals with trade in goods and services, and the financial account, which covers investments. A positive Balance of Payments indicates that more money is coming into the country than going out, and vice versa.

1. Market Expansion: International trade allows firms to expand their market reach beyond the domestic limitations, enabling them to access a larger customer base and increase sales revenue.

2. Access to Resources: Engaging in international trade provides firms access to various resources, including raw materials and advanced technologies that may not be available domestically.

1. Currency Fluctuations: Firms often face risks related to changes in currency values that can impact pricing and profitability in international markets.

2. Regulatory Challenges: Navigating different regulations and legal requirements in foreign markets can pose significant hurdles for Irish firms trying to enter or compete in international trade.

1. Decreased Consumer Spending: Increased taxes on income can lead to lower disposable income for consumers, resulting in reduced spending on goods and services, which can slow economic growth.

2. Increased Business Costs: Higher corporate taxes can reduce profitability for businesses, discouraging investment and potentially leading to layoffs or reduced hiring, impacting overall economic employment rates.