Balance of Trade and Economic Recovery for Ireland
Balance of trade is the relationship between a country's imports and exports. A good balance of trade is a trade surplus, where a country is exporting more than it is importing, a trade deficit is, quite obviously, the opposite end of the spectrum. In Ireland, the Central Statistics Office showed that in 2008 we exported less than we imported with Great Britain, but that we exported more than we imported with everywhere else in the world. Our total imports were 57,107.1 and our total exports were 86,293.8.
Quite clearly we have a trade surplus, however, with the economy in decline this could change dramatically. Already this year, many foreign businesses operating in Ireland have reduced staff numbers, or indeed shut down altogether. Those goods that were once manufactured in Ireland which made the country an attractive one to trade with, are now or will perhaps in the near future be made elsewhere. Many companies are moving to China due to the recent increase in the economy there. This will create a huge decrease for Ireland in terms of balance of trade.
Surely what is required of Irish people in business is new Company formation, new businesses that will be providing goods or services needed by other other countries. Not only will this facilitate export trade abroad but it will also provide much needed jobs at home. As little as two years ago the majority of people living in Ireland assumed their jobs were safe, but now they are learning that this definitely is not the case. Successful new home-grown businesses will doubtlessly be a step in the right direction in resolving both of these issues.
About the Author:
Lorraine McInerney is currently working as a Freelance Web Content Article Writer. She has an Arts Degree in English Literature and Ancient Classics, and she is currently a post-graduate student of English, specializing in Post-Colonial Literatures. She will be writing her thesis this summer on "Liminality in Post-Colonial Women's Writing'.