Part 1; Introduction
The only better for the media than COVID 19, is Brexit! It provides the press with more information, false headlines, and potential spin. To, create more fear and panic! Uncertainty, a critical concept for everyone to understand.
My goal for this essay is to provide the reader with an analysis of International Trade and provide them with a brief analysis of the Irish economy. In the previous two essays. I have quoted the work of Thomas Malthus (1766–1834). For this essay, I will be quoting another Classical Economist. David Ricardo.
Who was David Ricardo?
“The value of a commodity, or the quantity of any other commodity for which it will exchange, depends on the relative quantity of labour which is necessary for production, and greater or less compensation which is paid for that labour” (David Ricardo)
David Ricardo was born in 1772, he worked at the London Stock Exchange. It was from there he developed his ideas. He advocated for Free Trade as the more the nation trades with another. The more productive they will both be. Richard specialized in the dealing of government bonds will working at the London Stock Exchange. He invested heavily in the British government during the Napoleonic Wars.
After the Battle of Waterloo Ricardo became one of the wealthiest men in England. To help forecast the Irish economy. I will be using Ricardo’s method of analysis.
I hope to answer the following questions. How will Brexit change the Irish economy? What is a tariff? And finally, what is political risk?
International Trade & The Irish Economy
Over the last twenty years the Irish economy has benefited massively from international trade. Being one of the only speaking nations with the European has attracted a lot of investment from large multinational companies. Facebook, Intel, and Amazon have invested into the Irish economy.
Having a well-educated workforce and kind tax incentives has aloud for our economy to expand rapidly over the last two decades. We have a thriving services and manufacturing sectors. These sectors of the economy have been worst hit by COVID 19. Also, the uncertainty of our current situation has made consumers more prudent with their money.
The Irish economy is still one of the best performing within the EU. One of the main reasons why our recession has been below the EU average is our ability as an exporting economy.