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Using examples, analyse the role of the Irish Government in creating a suitable climate for business enterprises in the state. - Leaving Cert Business - Question 2 (A) - 2004
Question 2 (A)
Using examples, analyse the role of the Irish Government in creating a suitable climate for business enterprises in the state.
Worked Solution & Example Answer:Using examples, analyse the role of the Irish Government in creating a suitable climate for business enterprises in the state. - Leaving Cert Business - Question 2 (A) - 2004
Step 1
Business Regulation and Oversight
Answer
The Irish Government plays a crucial role in regulating business organizations through legislation. An important example includes the Sale of Goods and Supply of Services Act, which helps ensure that businesses operate fairly and transparently. This regulation promotes trust and stability within the market, enabling enterprises to thrive.
Step 2
Taxation Policies
Answer
By implementing taxation policies, the government can redistribute wealth to ensure that those who can afford to contribute more to the economy do so. The government might levy taxes on businesses that can then be utilized to support entrepreneurs and start-ups, creating a favorable environment for business growth.
Step 3
Economic Development Initiatives
Answer
Government support for initiatives such as Foras na Síble and Enterprise Ireland can help foster business development. These agencies offer resources, funding, and advice to start-ups and small businesses, ensuring that they have the necessary support to succeed.
Step 4
Financial Regulation
Answer
The role of the government in ensuring financial institutions adhere to regulations is vital. By establishing clear guidelines and controls, businesses are more likely to secure loans, which can be critical for growth and investment. Additionally, if borrowing costs rise due to economic factors, such regulations can keep interest rates more stable.
Step 5
Infrastructure Development
Answer
Investment in infrastructure such as buildings, roads, and communication networks creates a conducive environment for business enterprises. The government’s focus on improving public infrastructure ensures businesses can operate efficiently and reach their customers more effectively.
Step 6
Market Access and Trade Agreements
Answer
The Irish Government's participation in international organizations, like the World Trade Organization (WTO), furthers market access for Irish businesses. By negotiating trade agreements, the government opens new markets for businesses, thus providing opportunities for growth and development.