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Complete the missing figures in the three unshaded areas of the table below - Leaving Cert Business - Question 7 - 2016
Question 7
Complete the missing figures in the three unshaded areas of the table below. Visible Exports (Ebn) €70 €90 €110 Visible Imports (Ebn) €105 €65 Balan... show full transcript
Worked Solution & Example Answer:Complete the missing figures in the three unshaded areas of the table below - Leaving Cert Business - Question 7 - 2016
Step 1
Complete the missing figures in the table.
Answer
To find the missing figures in the table, we need to calculate the balance of trade for each row using the formula:
-
For the first row:
- Visible Exports = €70
- Visible Imports = €105
- Balance of Trade = €70 - €105 = €-35 (i.e., €35 deficit)
-
For the second row:
- Visible Exports = €90
- Visible Imports = €65
- Balance of Trade = €90 - €65 = €25 (i.e., €25 surplus)
-
For the third row:
- Visible Exports = €110
- Visible Imports = ???
- The Balance of Trade is given as €30 deficit. Therefore:
- €110 - ??? = €-30
- Hence, Visible Imports = €110 + €30 = €140
So the completed table is as follows:
| Visible Exports (Ebn) | Visible Imports (Ebn) | Balance of Trade (Ebn) |
|---|---|---|
| €70 | €105 | €35 deficit |
| €90 | €65 | €25 surplus |
| €110 | €140 | €30 deficit |
Step 2
Explain the term invisible exports.
Answer
Invisible exports refer to the services provided by a country to foreign nations, which lead to money flowing into the country. Unlike visible exports, which involve tangible goods, invisible exports primarily consist of services, such as tourism and education.
For instance, in the context of the Irish economy, consider the following example: When Italian tourists visit Ireland, they spend money on accommodation, food, and activities. This influx of money is categorized as invisible exports because it reflects income generated from foreign visitors enjoying services in Ireland.