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Evaluate the impact on Ireland of any two of the following: (i) The Common Agricultural Policy (ii) The Competition Policy (iii) The European Union Social Charter. - Leaving Cert Business - Question C - 2021
Question C
Evaluate the impact on Ireland of any two of the following: (i) The Common Agricultural Policy (ii) The Competition Policy (iii) The European Union Social Charter... show full transcript
Worked Solution & Example Answer:Evaluate the impact on Ireland of any two of the following: (i) The Common Agricultural Policy (ii) The Competition Policy (iii) The European Union Social Charter. - Leaving Cert Business - Question C - 2021
Step 1
The Common Agricultural Policy
Answer
The Common Agricultural Policy (CAP) supports farmers in Ireland by promoting a fair standard of living. It provides financial support through the single payment scheme, helping farmers maintain viable businesses while adhering to safety and environmental standards.
Moreover, the CAP eliminates trade barriers, allowing Irish farmers to access larger markets within the EU without restrictions. This freedom enhances the competitiveness of Irish agricultural products.
Additionally, CAP grants facilitate the improvement of livestock and crop quality, significantly increasing profitability. However, while CAP supports farmers, it can also lead to over-reliance on subsidies, influencing productivity and market dynamics adversely.
Step 2
The Competition Policy
Answer
The Competition Policy in the EU plays a crucial role in regulating the market dynamics in Ireland. It bans anti-competitive practices such as cartels that prevent fair competition. This protectionism allows smaller Irish businesses to thrive by enabling them to compete fairly against larger entities.
Moreover, the policy ensures that mergers and acquisitions do not create monopolies, maintaining a diverse market. However, the stringent regulations may also impact larger firms' strategies, potentially limiting aggressive expansion plans.