crazam 21 Flashcards
indigenous firm
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
national minimum wage
•the legal minimum hourly payment to an employee. rates set by government
•dépendant on age
possible economic impact on irish business of increase of national minimum wage
•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
interest rates
•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
inflation
•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
employment
•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
economic growth
•an increase in the value of the goods and services produced in a country from one period to the next
grants
•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
exchange rates
•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
privatisation
•the sale of state owned companies to private investors
•eg gov selling ownership of Aer Lingus to private shareholders
nationalisation
•the gov buying shares and taking control of privately owned businesses
•eg gov taking ownership of Anglo Irish Bank
how does the consumer price index work
•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
role of enterprise ireland
•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
funding
(enterprise ireland)
•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
international offices
(enterprise ireland)
•operates over thirty international offices worldwide
•help irish businesses by providing marketing services and organizing introductions with potential clients abroad
encouraging research and development
(enterprise ireland)
•encourages businesses to invest in R&D and to develop new products, thus increasing likelihood of long term business success
market research centers
(enterprise ireland)
•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
events
(enterprise ireland)
•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
how irish gov affects the labor force in ireland
•increased current expenditure in public sector wages/social welfare
•increase capital expenditure
•gov incest in education and training
•gov grants during covid 19
increased current expenditure on public sector wages/social welfare
(how irish gov affects the labor force)
•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
increased capital expenditure
(how irish gov affects the labor force)
•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
gov invest in education and training
(how irish gov affects the labor force)
•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
gov grants during covid 19
(how irish gov affects the labor force)
•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
ida ireland
responsible for attracting and developing foreign direct investment
companies like Google, Intel, Facebook all have interacted with IDA Ireland
ida ireland functions
•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
