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Outline two reasons why Ireland exports goods and services - Leaving Cert Business - Question A - 2020
Question A
Outline two reasons why Ireland exports goods and services. The Irish market is small so Irish firms need to export their goods to stay profitable. Exporting allow... show full transcript
Worked Solution & Example Answer:Outline two reasons why Ireland exports goods and services - Leaving Cert Business - Question A - 2020
Step 1
Outline two reasons why Ireland exports goods and services.
Answer
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Market Size: The Irish market is relatively small. Exporting is essential for firms to expand their customer base and increase profitability, as reliance solely on the domestic market limits growth potential.
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Risk Diversification: By exporting, Irish firms can spread their business risk across multiple markets. This strategy ensures that they are not solely dependent on one market, thereby safeguarding against local economic downturns.