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Study the information supplied in the newspaper article below and answer the questions which follow: Midlands Tribune 18 September 2008 More job losses in the Midlands Two hundred and eighty workers in the Midlands town of Ballydrum face unemployment with the announcement that the American transnational company Teltec is to shut its plant next month - Leaving Cert Business - Question 2 - 2009
Question 2
Study the information supplied in the newspaper article below and answer the questions which follow: Midlands Tribune 18 September 2008 More job losses in the ... show full transcript
Worked Solution & Example Answer:Study the information supplied in the newspaper article below and answer the questions which follow: Midlands Tribune 18 September 2008 More job losses in the Midlands Two hundred and eighty workers in the Midlands town of Ballydrum face unemployment with the announcement that the American transnational company Teltec is to shut its plant next month - Leaving Cert Business - Question 2 - 2009
Step 1
Identify one reason why Teltec may have decided to locate in Ballydrum in 1995.
Answer
One reason Teltec may have decided to locate in Ballydrum in 1995 is the availability of a well-educated and skilled workforce in the area. This factor would help ensure that the company could hire qualified employees for its operations, contributing to its success.
Step 2
Explain three possible benefits that Teltec may have brought to the community of Ballydrum since 1995.
Answer
- Employment: Teltec has created jobs for many individuals in the Ballydrum area, thereby boosting the local economy.
- Spin-off effects: Local businesses have benefited by supplying goods and services to Teltec, increasing local economic activities and partnerships.
- Community Engagement: Teltec may have sponsored local events and initiatives, demonstrating its commitment to the community and enhancing its reputation.
Step 3
Explain two possible effects that the closure will have on local businesses in Ballydrum.
Answer
- Decrease in Sales/Profits: Local businesses that depend on Teltec employees for custom will likely see a decrease in sales and profits due to reduced consumer spending.
- Job Losses: The closure of Teltec may lead to further job losses in the area, as affiliated companies and services face decreased demand and may have to downsize or shut down.
Step 4
Outline two possible reasons for Teltec’s decision to relocate to China.
Answer
- Lower Wage Costs: Relocating to China allows Teltec to significantly reduce labor costs, which can enhance profitability.
- Access to New Markets: Establishing operations in China can provide Teltec with opportunities to tap into the growing Chinese market and expand its customer base in the region.