Chapter 22: Government and Business Flashcards
the 4 factors of production and there payments
land - rent
labour - wage
capitol- interest
enterprise - proft/loss
the 3 economic systems
centrally planned
free market capitalism
mixed economy
why does the government intervene in ireland
- achieve fairer distribution of wealth
- to provide essential infrastructure
- provides essential services
- regulates
what taxes redistribute wealth
paye
corporation tax
vat
property tax
what services are provided by the government
transport
education
health
housing
what natural resources has the gov developed
energy / gas/ electricity
bog / turf
water systems
wind
what infrastructure has the gov devoloped
roads and motorways
broadband
extension of luas and dart
airport terminal
define privatisation
selling of state companies to buyers in the private sector
arguments for privatisation
creates revenue for the government.
able to sell shares which allows them to generate wealth.
reduces waste and inefficiency.
arguments against privatisation
nationalisation protects important service.
jobs can be lost in the motive of making profit.
loss of state asset eg bord na mona
function of ida
the responsibility of the IDA is to attract and develop foreign direct investment in ireland
eg google and microsoft
3 actions carried out by IDA
offers advice on property for international investors.
builds link between third level education and international businesses.
introduces potential investors to local industry
function of enterprise ireland
responsible for developing indigenous irish industry with an export focus. helps irish owned business with 10 or more employees seeking to develop new export sales
eg irish software sector
3 actions carried out by enterprise ireland
provides supports for companies and researchers in higher education to develop new technologies.
provides funding and equity investment.
provides international offices that can assist in increasing exports
how do country enterprise boards encourage enterprise
- information and advice on setting up/ expanding small businesses
- provides grants for capitol costs
- mentoring programmes
- helps with training
define community development
for any local economy to thrive, he people who live in it and have a stake in its future must actively promote and develop it at every opportunity. projects are undertaken for the benefit of the community and provided by community based groups eg clubs
when the term community development is used , it means that groups of people help themselves and their communities to set up new enterprises, schemes and projects swell as improve the local social and economic infrastructure of their areas.
name 3 examples of community development organisations
LEADER +
county enterprise boards
area partnership companies
benefits of community initiatives
direct employment spin off jobs opportunities for personal and skill development growth and prosperity in local area improved physical appearance of town
how does the government affect the wage force
setting legal minimum wage rates of tax ida enterprise irland major employer - 300,000
opportunities of Partnership
have more access to capitol as up to twenty partners can bring financial resources to the business
have access to different skill sets
ability to achieve economies of scale
challenges of partnership
unlimited liability
if one partner dies or resigns the partnership must be resolved
not a separate legal entity therefore partners and not the business can be sued in law
role of irish government in regulating business in ireland
protect environment - EPA
protect consumer - salle of goods and supply of services act 1980 and consumer protection act 2007
role or irish gov in encouraging businesses
decreases in taxation
increases in state expenditure
