What is one importance of international trade for Ireland?

International trade plays a vital role in Ireland's economy, primarily due to the increased market size it offers, which leads to higher efficiency for businesses. By engaging in international trade, Irish companies can access larger markets beyond their domestic boundaries, allowing them to expand their customer base significantly. This increased market size encourages economies of scale, where the cost per unit of production decreases as output increases, leading to greater efficiency in operations.

As businesses streamline their processes to meet the demands of both national and international customers, they can enhance productivity, innovate, and become more competitive globally. For Ireland, a country with a relatively small domestic market, tapping into international trade is crucial for sustaining economic growth, attracting foreign investment, and creating a diverse range of employment opportunities. This interconnectedness also helps Ireland to stay competitive by fostering innovation and improving product offerings, which is essential in a rapidly changing global economy.