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Analyse how the changing trends in the international economy have impacted on Irish businesses. - Leaving Cert Business - Question B - 2010
Question B
Analyse how the changing trends in the international economy have impacted on Irish businesses.
Worked Solution & Example Answer:Analyse how the changing trends in the international economy have impacted on Irish businesses. - Leaving Cert Business - Question B - 2010
Step 1
Impact of Globalization
Answer
Globalization has significantly affected Irish businesses by increasing competition and market reach. Companies can now operate across borders, allowing for a more extensive customer base. This has prompted Irish firms to innovate and improve efficiencies to remain competitive on the global stage.
Step 2
Technological Advancements
Answer
The rapid evolution of technology has transformed how Irish businesses operate. Enhanced communication and e-commerce platforms enable these businesses to connect with international markets easily. This trend facilitates not only access to new markets but also the acquisition of more diverse resources and talents.
Step 3
Economic Policies and Trade Agreements
Answer
Changing international economic policies, including trade agreements like the EU's Common Market, have opened up new opportunities for Irish businesses. These agreements reduce tariffs, making it easier for companies to export products. However, they also expose local firms to international competition.
Step 4
Consumer Preferences
Answer
Shifting consumer preferences in response to global trends influence Irish businesses. For instance, increased demand for sustainable and ethically sourced products has forced Irish companies to adapt their business models and supply chains to meet these new expectations.
Step 5
Impact of Economic Shifts
Answer
Global economic shifts, such as recessions or booms, impact Irish businesses' strategies and performance. For example, during global downturns, Irish businesses may face decreased demand for exports, prompting them to reassess their operational strategies and cost management.