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5. (a) Explain the term ‘privatisation’: Privatisation refers to the process of transferring ownership of a business, enterprise, or public service from the government to private individuals or organizations - Leaving Cert Business - Question 5 - 2006
Question 5
5. (a) Explain the term ‘privatisation’: Privatisation refers to the process of transferring ownership of a business, enterprise, or public service from the govern... show full transcript
Worked Solution & Example Answer:5. (a) Explain the term ‘privatisation’: Privatisation refers to the process of transferring ownership of a business, enterprise, or public service from the government to private individuals or organizations - Leaving Cert Business - Question 5 - 2006
Step 1
Explain the term ‘privatisation’:
Answer
Privatisation refers to the process of transferring ownership of a business, enterprise, or public service from the government to private individuals or organizations. This often involves the sale of shares in state-owned enterprises to the public. An example includes the sale of Telecom Éireann and Irish Life.
Step 2
Illustrate its impact on the development of the Irish economy:
Answer
The impact of privatisation on the development of the Irish economy is significant. By selling state-owned entities, the government can reduce public sector debt and increase efficiency through competition. This leads to improved services and greater investment in infrastructure. Additionally, it opens up markets for private investors, fostering economic growth and job creation.