Many believe that export-led growth is the way forward for the recovery of the Irish economy - Leaving Cert Economics - Question 7 (a) - 2010

International trade is vital for the Irish economy for several reasons:

1. Greater standard of living / increased wealth: International trade contributes to increased wealth in the economy by facilitating the purchase of a wider variety of goods and services. This leads to an overall rise in the standard of living, as consumers gain access to products that may not be available domestically.

2. Greater choice of commodities: Trade enables countries to specialize and offer a broad choice of goods. It allows Ireland to import commodities that it cannot produce efficiently due to geographical or resource limitations, enhancing consumer choice.

3. More competitive prices: In an international trading environment, competition often results in reduced prices, which can benefit consumers through lower costs for goods and services.

4. Employment and investment: As industries expand to meet both export and domestic demand, job creation occurs, leading to a healthier economy and a boost in employment opportunities.

5. Large-scale production benefits: Firms can benefit from economies of scale through international trade, which allows them to lower costs and thus provide goods at a lower price.

6. Excess domestic output: Irish companies, often producing more than can be sold domestically, rely on international markets for surplus sales, which helps them thrive.

7. Efficiency in resource use: By engaging in trade, companies can focus on their comparative advantages, leading to more efficient resource use and waste reduction.

8. Generating demand: In times of economic downturn, as seen during recent recessions, international trade allows countries to generate demand for their goods overseas, which can stimulate recovery.