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Irish people attending the Euro 2016 (European soccer championships) in France is an example of an invisible import for Ireland - Leaving Cert Economics - Question 6 - 2016
Question 6
Irish people attending the Euro 2016 (European soccer championships) in France is an example of an invisible import for Ireland. (a) (i) Distinguish between a vis... show full transcript
Worked Solution & Example Answer:Irish people attending the Euro 2016 (European soccer championships) in France is an example of an invisible import for Ireland - Leaving Cert Economics - Question 6 - 2016
Step 1
Distinguish between a visible import and an invisible import.
Answer
A visible import refers to the purchase of goods that are brought into a country, which can be physically seen, such as cars or electronics. Conversely, an invisible import refers to services that are purchased from abroad, which cannot be physically seen, such as tourists attending events or educational services. For example, Irish people attending the Euro 2016 is considered an invisible import as it involves spending on services in another country.
Step 2
State and explain two reasons why imports are important for the Irish economy.
Answer
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Increased variety of goods: Imports allow consumers in Ireland to have access to a larger selection of goods and services, leading to improved consumer choice and potentially better living standards.
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Competitive prices: The availability of imported goods can drive prices down through competition, improving affordability for consumers and stimulating the introduction of new products into the local market.
Step 3
State and explain two economic advantages of this development for the Irish economy.
Answer
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Increased employment opportunities: With the influx of tourists, businesses in the hospitality and service sectors are likely to hire more staff, creating numerous job opportunities within the community.
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Boost in local income: The increase in tourism can lead to higher revenues for local businesses, contributing to the economic growth through rising income levels, which can be reinvested into the economy.
Step 4
Outline two measures which firms in the Irish Tourism Industry could take to ensure that the number of tourists visiting Ireland continues to increase.
Answer
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Improving advertising strategies: By enhancing marketing campaigns targeting international audiences, firms can attract more tourists through effective messaging about Ireland's unique attractions.
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Offering competitive pricing: Ensuring that accommodation and transport costs are affordable can encourage more visitors, making Ireland a prominent choice for holidaymakers.
Step 5
Outline one reason why Ireland is considered a popular tourist location.
Answer
One reason Ireland is regarded as a popular tourist destination is its rich cultural heritage and stunning natural landscapes, attracting visitors interested in experiencing its historical sites and scenic beauty.
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Step 9
Discuss two possible economic advantages to a local community, other than direct employment, of an MNC locating its operations there.
Answer
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Increased local spending: An MNC's presence in the community can lead to increased spending at local businesses as employees and suppliers engage with the local economy, stimulating business growth.
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Infrastructure development: The establishment of an MNC can lead to improvements in local infrastructure, such as roads and public services, benefiting the community at large.