crazam 21

Question 1

indigenous firm

Answer 1

a business owned by residents of a country that it operates in
an irish indigenous firm is a business that was established by Irish residents and operates primarily in ireland

Question 2

national minimum wage

Answer 2

•the legal minimum hourly payment to an employee. rates set by government
•dépendant on age

Question 3

possible economic impact on irish business of increase of national minimum wage

Answer 3

•profits of business may decrease due to higher costs. increased costs may result in redundancies. the increased hourly rate of hiring employees may force business to reduce staff
•increased prices may lead to loss of trade. increased wage costs are passed onto consumers as higher prices

Question 4

interest rates

Answer 4

•refers to the cost of borrowing capital expressed as a percentage of the amt borrowed
•decrease leads to more consumer borrowing. consumers will use borrowed finance to pay for houses, cars, furniture, etc
•has pos impact on irish business as sales increase

Question 5

inflation

Answer 5

•the sustained increase in the general level of prices over a period of time
•is high, has neg impact on businesses costs. cost of running expenses, raw materials, etc will increase

Question 6

employment

Answer 6

•refers to percentage of labor force who are engaged in paid employment
•decrease has neg impact on irish businesses. when labor force have less income, consumer spending decreases. leads to decrease in sales

Question 7

economic growth

Answer 7

•an increase in the value of the goods and services produced in a country from one period to the next

Question 8

grants

Answer 8

•refers to the availability of finance from state agencies to help the growth of businesses
•doesn’t have to be repaid but comes with conditions

Question 9

exchange rates

Answer 9

•cost of one currency in terms of another. rate impacts overall transaction cost
•can make it difficult to obtain necessary mark up in some markets.
•rate subject to change

Question 10

privatisation

Answer 10

•the sale of state owned companies to private investors
•eg gov selling ownership of Aer Lingus to private shareholders

Question 11

nationalisation

Answer 11

•the gov buying shares and taking control of privately owned businesses
•eg gov taking ownership of Anglo Irish Bank

Question 12

how does the consumer price index work

Answer 12

•measures the overall change in the prices of goods and services that people typically buy over time
•collects 53,000 prices every month and compares these to corresponding prices from prev month

Question 13

role of enterprise ireland

Answer 13

•responsible for developing indigenous irish industry with an export focus. focused on helping irish owned business with 10 or more employees seeking to deliver new export sales
assists by:
•funding
•international offices
•encouraging r&d
•market research centers
•events

Question 14

funding
(enterprise ireland)

Answer 14

•provides funding and support for companies eg. entrepreneurs with business propositions for high potential start up or large companies expanding their activities & growing international sales.
•can also provide equity investment for business

Question 15

international offices
(enterprise ireland)

Answer 15

•operates over thirty international offices worldwide
•help irish businesses by providing marketing services and organizing introductions with potential clients abroad

Question 16

encouraging research and development
(enterprise ireland)

Answer 16

•encourages businesses to invest in R&D and to develop new products, thus increasing likelihood of long term business success

Question 17

market research centers
(enterprise ireland)

Answer 17

•provides business with range of up to date info, including market size, key competitors and country stats
•info available online and at & market Research Centre in Dublin

Question 18

events
(enterprise ireland)

Answer 18

•organized trade missions and trade fairs, often in coordination with country visits by gov ministers
•these trade missions build links with other countries & give irish business opportunity to meet w/heads of gov and consumers

Question 19

how irish gov affects the labor force in ireland

Answer 19

•increased current expenditure in public sector wages/social welfare
•increase capital expenditure
•gov incest in education and training
•gov grants during covid 19

Question 20

increased current expenditure on public sector wages/social welfare
(how irish gov affects the labor force)

Answer 20

•national wage agreements for public sector workers involving the social partners lead to spin off affect for business as public sector workers more disposable income
•sw increase, increase spending power of the population
•eg- irish gov restoring pay/increasing pay and incentives for teachers/nurses, etc would increase disposable income of public sector employees

Question 21

increased capital expenditure
(how irish gov affects the labor force)

Answer 21

•could increase capital expenditure in infrastructure, schools, hospitals, etc
•this creates jobs in labour force
•eg- construction of new schools or new children’s hospitals created employment opportunities for labor force

Question 22

gov invest in education and training
(how irish gov affects the labor force)

Answer 22

•gov invests in 3rd lvl education. all students are exempt from tuition fees. ensures steady supply of highly skilled labor
•training provided through organizations like SOLAS, for unemployed people allows for up skilling and helps unemployed re enter labour for e

Question 23

gov grants during covid 19
(how irish gov affects the labor force)

Answer 23

•gov supports like sw to employees affected by covid 19 lead to labour force having disposable income
•gov offered financial supports (bus supports loans from €25,000 up to €1.5M with max interest rate of 4%) to businesses affected by covid 19

Question 24

ida ireland

Answer 24

responsible for attracting and developing foreign direct investment
companies like Google, Intel, Facebook all have interacted with IDA Ireland

Question 25

ida ireland functions

Answer 25

•provides info and stars stats key business sectors & locations within ireland
•assists in setting up a business in ireland & offers advice on property for intl investors
•introduced presenting investors to local industry in ireland, gov, service providers, and research institutions
•develops clusters of excellence/equitable regional balance