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Explain the opportunities and challenges for Irish business as a result of the new member states who joined the Single European Market in 2004. - Leaving Cert Business - Question A - 2005
Question A
Explain the opportunities and challenges for Irish business as a result of the new member states who joined the Single European Market in 2004.
Worked Solution & Example Answer:Explain the opportunities and challenges for Irish business as a result of the new member states who joined the Single European Market in 2004. - Leaving Cert Business - Question A - 2005
Step 1
Opportunities for Irish Business
Answer
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Access to New Markets: The inclusion of new member states expanded the Single European Market, providing Irish businesses with greater market access and potential customer bases in Eastern Europe.
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Competitive Products: Irish firms can benefit from increased competition among suppliers, potentially leading to cheaper inputs and enhanced product offerings.
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Investment Opportunities: With expanding economies in the new member states, there are opportunities for Irish investments and partnerships, enhancing economic relations.
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Labor Market Advantages: Access to a broader labor market means Irish businesses can attract talent from various EU countries, helping to fill skills gaps.
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Cultural Exchange: Collaboration with businesses in new member states can lead to innovative practices and shared knowledge, improving overall business operations.
Step 2
Challenges for Irish Business
Answer
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Increased Competition: Irish businesses may face intensified competition from newer member states that can offer lower costs of production.
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Regulatory Barriers: The harmonization of regulations across member states can pose challenges for Irish businesses, particularly in adjusting to new industry standards.
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Market Vulnerabilities: Economic fluctuations in Eastern Europe can affect demand for Irish exports, highlighting the need for market diversification.
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Intellectual Property Issues: Protecting intellectual property may become more complex with varying enforcement standards across member states.
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Cultural Differences: Navigating cultural and business practice differences may require additional resources and adaptation strategies.