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Examine the impact of membership of the European Union on the Irish economy. - Leaving Cert Geography - Question 7C - 2020
Question 7C
Examine the impact of membership of the European Union on the Irish economy.
Worked Solution & Example Answer:Examine the impact of membership of the European Union on the Irish economy. - Leaving Cert Geography - Question 7C - 2020
Step 1
Identify impacts of EU membership on the Irish economy
Answer
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Economic Growth: Membership in the EU has contributed to significant economic growth in Ireland. Access to the single market has allowed Irish businesses to expand operations beyond national borders, increasing exports.
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Foreign Direct Investment (FDI): Ireland has become a hub for foreign direct investment, especially from U.S. companies seeking a gateway to the European market. This inflow has created jobs and boosted local economies.
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Funding and Grants: The EU provides various funding programs that support infrastructure development, agricultural projects, and educational initiatives. This financial support enhances economic stability and growth.
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Regulatory Framework: Membership has imposed EU regulations that can protect consumer rights and enhance environmental standards. However, compliance can also create burdens for small businesses.
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Economic Vulnerability: Membership makes the Irish economy susceptible to economic fluctuations within the EU, as seen during the Eurozone crisis, which affected Ireland's financial stability.
Step 2
Examine the positive impacts
Answer
The positive impacts of EU membership include:
- Increased Trade: The removal of trade barriers has encouraged cross-border trade, benefiting Irish exporters.
- Job Creation: The influx of FDI has led to job creation in various sectors, including technology and pharmaceuticals.
- Infrastructural Development: EU funding has facilitated major infrastructure projects, improving connectivity and efficiency within the economy.
Step 3
Examine the negative impacts
Answer
The negative impacts of EU membership include:
- Sovereignty Concerns: Some argue that EU regulations undermine national sovereignty, limiting the government's ability to make independent decisions.
- Dependency on EU Funding: The Irish economy has become somewhat dependent on EU funding programs, which may constrain fiscal policies if funding decreases.
- Sectoral Imbalances: The focus on certain industries for FDI has led to imbalances, with traditional sectors facing challenges.