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Ireland has been a member of the EU since 1973 - Leaving Cert Business - Question 3 - 2007
Question 3
Ireland has been a member of the EU since 1973. EU membership has had a significant effect on Irish economic growth and development. (A) Outline three advantages to... show full transcript
Worked Solution & Example Answer:Ireland has been a member of the EU since 1973 - Leaving Cert Business - Question 3 - 2007
Step 1
Outline three advantages to Irish business of European Union membership.
Answer
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Access to a Large Market: EU membership provides Irish businesses with access to a larger market of over 500 million consumers, facilitating export opportunities and expansion.
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Economies of Scale: Being part of the EU allows firms to achieve economies of scale, reducing costs per unit as they expand production for a broader market.
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Free Movement of Goods and Labor: EU membership enables the free movement of goods and labor, allowing businesses to hire talent from across the EU and streamline trade processes, reducing tariffs and trade barriers.
Step 2
Step 3
Step 4
Outline two effects of rising unemployment on the Irish economy.
Answer
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Increased Government Spending on Welfare: Rising unemployment often results in higher social welfare payments, placing a strain on government resources.
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Decreased Revenue for the Government: With fewer employed individuals, the government collects less in taxes (like PAYE and VAT), potentially leading to higher taxes or cuts in public services.
Step 5
Outline, using examples, two ways in which Information Technology helps Irish firms involved in international trade.
Answer
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Enhanced Marketing and Access: Information Technology enables Irish firms to market their products globally through online platforms and e-commerce websites, reaching a broader audience.
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Improved Communication: Technology facilitates international communication via emails and video conferencing, allowing businesses to negotiate and maintain relationships with foreign partners effectively.