Photo AI
Outline two ways the Government could encourage business activity in Ireland - Leaving Cert Business - Question 6 - 2011
Question 6
Outline two ways the Government could encourage business activity in Ireland. (i) (ii)
Worked Solution & Example Answer:Outline two ways the Government could encourage business activity in Ireland - Leaving Cert Business - Question 6 - 2011
Step 1
Outline two ways the Government could encourage business activity in Ireland. (i)
Answer
One way the Government could encourage business activity is by implementing a low corporation tax rate. This approach, with a rate of 12.5%, would attract foreign direct investment, as businesses are incentivized to set up operations in Ireland due to the potential for higher profits.
Furthermore, this low tax rate fosters a competitive business environment, which can lead to an increase in overall business activity within the country.
Step 2
(ii)
Answer
Another way the Government can stimulate business activity is through investment in necessary infrastructure, such as transportation and communication systems. By improving access to essential services such as roads, airports, and telecommunications, businesses can operate more efficiently.
This increased infrastructure not only aids current businesses but also attracts new businesses, as it creates a conducive environment for growth and job creation.