Visible Exports € 1,138m Visible Imports € 1,235m (i) From the above information, calculate the Balance of Trade - Leaving Cert Business - Question 3 - 2009

The Balance of Trade shows a deficit of € 97m, as the visible imports exceed the visible exports.

The Balance of Payments is the record of all economic transactions between residents of a country and the rest of the world over a specified period. It includes the value of Total Exports (both visible and invisible) and the value of Total Imports (visible and invisible). This balance can be positive (surplus) or negative (deficit), reflecting whether a country is earning more from the rest of the world than it is spending.

1. Expand Market Reach: Engaging in international trade allows Irish firms to access larger markets beyond domestic limits, potentially increasing sales and revenue.
2. Economies of Scale: By entering international markets, firms can increase production levels, which may lead to reduced costs per unit and enhanced efficiency.

1. High Operating Costs: Engaging in international trade often involves higher costs related to transportation and logistics, which can affect profitability.
2. Regulatory Hurdles: Firms must navigate different regulations and standards in various countries, which can complicate compliance and increase costs.

1. Reduced Consumer Spending: Higher taxes can lead to reduced disposable income for consumers, which may lower overall spending in the economy.
2. Increased Government Revenue: Higher taxes can generate more revenue for the government, allowing for increased public spending on infrastructure or social programs, which could stimulate economic growth.