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Read the information supplied and answer the questions which follow: Transnational Companies, Irish-owned firms and the agricultural industry have an important role to play in the recovery of the Irish economy - Leaving Cert Business - Question 3 - 2011
Question 3
Read the information supplied and answer the questions which follow: Transnational Companies, Irish-owned firms and the agricultural industry have an important role... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow: Transnational Companies, Irish-owned firms and the agricultural industry have an important role to play in the recovery of the Irish economy - Leaving Cert Business - Question 3 - 2011
Step 1
Explain two benefits of the agricultural industry for the Irish economy.
Answer
The agricultural industry plays a crucial role in the Irish economy due to the following benefits:
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Employment Creation: The agricultural sector provides approximately 4% of total employment in Ireland. This means that it is a significant source of jobs, especially in rural areas, which helps sustain local economies and communities.
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Contribution to Food Processing: Agriculture supplies essential raw materials for the food processing industry, specifically in areas such as meat, dairy, and organic produce. This relationship not only supports local farmers but also enhances value-added production, contributing to the overall economic output.
Step 2
Outline three ways in which the Irish Government could help Irish business.
Answer
The Irish Government can support local businesses through several key initiatives:
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Grants through Agencies: Implementing grants and financial support through organizations like Enterprise Ireland can help businesses secure funding for development and innovation projects.
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Low Tax Rates: Maintaining low corporation tax rates encourages domestic and international companies to invest in Ireland, thereby stimulating economic growth.
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Infrastructure Development: Investing in better infrastructural facilities enhances connectivity and accessibility for businesses, which can lead to improved efficiency and competitiveness.
Step 3
Explain two reasons why transnational companies (multinational companies) locate in Ireland.
Answer
Transnational companies choose to set up operations in Ireland for various reasons, including:
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Grants from IDA Ireland: Financial incentives and grants offered by IDA Ireland attract multinational corporations to establish their headquarters, promoting job creation and investment.
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Skilled Labour Force: Ireland boasts an educated and skilled workforce, particularly in sectors like technology and pharmaceuticals, which are essential for the operations of multinational companies.
Step 4
Step 5
Describe two effects of this increase in taxes.
Answer
The increase in petrol and diesel taxes can lead to various economic effects, such as:
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Increased Transport Costs: Higher fuel prices can raise transportation costs for both consumers and businesses, leading to increased prices for goods and services across the board.
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Changing Consumer Behavior: Consumers may choose to use public transport more frequently, walk, or bike instead of using private vehicles, promoting a shift towards more sustainable modes of transport.