A-Level Edexcel Business Influences on Business Decisions: The Irish government should have

Question

The Irish government should have supported the decision for Pfizer to locate in Ireland because of the potential boosts in job creation and technological innovation. Pfizer, as a foreign-owned multinational, can bring new skills and technology to the economy, which might not be readily available within Irish firms.

These advancements could spill over to local Irish businesses, particularly in sectors like pharmaceuticals and IT, making them more innovative and productive. Furthermore, an increase in competition among drug manufacturers could improve product choice and lower prices in both Ireland and the EU, benefiting Irish consumers directly.

Additionally, the Cork area would gain sufficient local suppliers as businesses would cater to Pfizer's needs, increasing local economic activity and contributing positively to Ireland’s GDP.

On the other hand, there are significant drawbacks to consider. Irish businesses might struggle to compete with Pfizer in terms of wages, losing the ability to attract top talent, particularly in healthcare roles. This could lead to a skills shortage in the sector, hindering the potential benefits.

Furthermore, the Irish economy has a significant dependency on multinationals, which could increase vulnerability to sudden relocations. If Pfizer decided to move operations, it would leave local economies exposed.

The Irish government must also consider the broader implications of relying heavily on multinationals. For instance, while tax revenues from corporations like Pfizer can benefit the state, it may also lead to a lack of development in local companies, which would struggle to maintain operations due to such competition.

In summary, while the location of Pfizer in Ireland could provide immediate economic benefits through job creation and technological advancements, the Irish government should remain cautious of the long-term consequences for local businesses and the overall economy.

The Irish government should have supported the decision for Pfizer to locate in Ireland because of the potential boosts in job creation and technological innovation - Edexcel - A-Level Business - Question 2 - 2017 - Paper 1

Worked Solution & Example Answer:The Irish government should have supported the decision for Pfizer to locate in Ireland because of the potential boosts in job creation and technological innovation - Edexcel - A-Level Business - Question 2 - 2017 - Paper 1

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