U6 Ch. 28 Gov and Business

Question 1

national minimum wage

Answer 1

legal minimum hourly payment to an employee. Set by the government

Question 2

Privatisation

Answer 2

Sale of state-owned enterprises to private investors. E.g. sale of Aer Lingus to private shareholders

Question 3

Nationalisation

Answer 3

government buying shares and taking control of privately owned business. E.g. Government taking control of Anglo-Irish Bank

Question 4

Benefits of privatisation

Answer 4

1. Government Revenue (money from sale can fund infrastructure/ repay national debt)
2. Increased Efficiency (private shareholders have profit motive that the government didn’t)
3. Competition (elimination of state monopoly to lead open market competition, leading to greater choice for consumers)
4. Greater Access to finance (able to take out loans and sell shares leading to more expansion, creating wealth and employment in the local economy)

Question 5

Challenges of privatisation

Answer 5

1. Loss of state-assets (no state protection for the industry)
2. lack of social commitments (private owners may cut down on non-profiting parts of business to cut costs due to having less social commitments to the public. Could reduce access to essential services for those who really need them)
3. Increased prices for consumers (in order to make more profit)

Question 6

How government create positive business environment

Answer 6

1. Grants (for start-ups through LEO. They also offer financial support through crisis such as the Covid-19 pandemic)
2. State Agencies (provide advice, training, guidance, mentoring and aid, facilitating growth. E.g. Fáilte Ireland (develop tourism), IDA Ireland (provides grants to attract FDI)
3. Invest In Education (Ireland invests in 3rd level education for all students ensuring a steady supply highly skilled labour that businesses need)
4. Low Taxation (encourages native entepreneurs to start a business and attracts Foreign companies to locate here because they can retain most of what they gain)

Question 7

EI definition

Answer 7

Enterprise Ireland. helps existing indigenous firms to expand

Question 8

IDA

Answer 8

Industrial Development Agency. Aims to attract FDI into Ireland

Question 9

PPP

Answer 9

Public-private partnership. Public and private sector work together on a project. Involves providing infrastructure. E.g. M1 Dundalk, Dublin Criminal Courts of Justice.

Question 10

How government affects the labour force

Answer 10

1. Taxation (Sets PAYE, USC, PRSI rates. Increasing these rates may discourage people from working, decreasing has the opposite affect)
2. Employment (Ireland’s largest employer is the government. Employs people directly in public sector)
3. Increased Expenditure (developing more infrastructure, creates jobs)
4. Invest In Education (Ireland invests in 3rd level education for all students ensuring a steady supply highly skilled labour. Training agencias like Solas help unemployed to upskill)
5. Regulations (Setting minimum wage and laws such as the Unfair Dismissals Acts 1977-2015 give employees more protection and security in workplace)

Question 11

Deregulation

Answer 11

removal of legislative barriers to allow firms to enter an industry or a market

Question 12

Benefits of Nationalisation

Answer 12

1. Protects essential services
2. Protects industries
3. Profit for gov

Question 13

Drawbacks of Nationalisation

Answer 13

1. Cost of taxpayer
2. Inneficencies (due to lack of profit motive)

Question 14

CAP

Answer 14

Common Agricultural Policy

Question 15

CFP

Answer 15

Common Fisheries Policy

Question 16

CV

Answer 16

curriculum vitae

Question 17

ECB

Answer 17

European Central Bank

Question 18

EIB

Answer 18

European Investment Bank

Question 19

CJEU

Answer 19

Court of Justice of the European Union

Question 19

EMU

Answer 19

Economic and Monetary Union

Question 20

ESM

Answer 20

European Single Market

Question 21

ESF

Answer 21

European Social Fund

Question 22

TNC

Answer 22

Transnational Companies

Question 23

WTO

Answer 23

World Trade Organisation