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Government and Business

What is the role of legislation in government intervention in business?

To enforce laws, protect employees and consumers, e.g., the Consumer Protection Act 2007

Why does the government intervene in infrastructure development?

Infrastructure, like roads, is too expensive for enterprises to develop on their own, so the government steps in to improve and develop these services.

What is the purpose of government bonds?

Bonds are interest-only loans issued by the government to raise money, e.g., by the National Treasury Management Agency (NTMA).

What is the role of the IDA in Ireland?

To attract Foreign Direct Investment (FDI) by providing information, networking, and grants.

How does Enterprise Ireland support Irish businesses?

By providing funding, trade missions, and market research centers.

What is one benefit and one drawback of PPPs?

Benefit: Expertise and fast completion.

Drawback: More expensive and possible bankruptcy.

How might high PAYE rates affect the labor force?

High PAYE rates may discourage people from working.

What is one benefit and one drawback of privatization, using an example?

Benefit: Income generated for infrastructure.

Drawback: Increased prices for consumers.

What is one benefit and one drawback of nationalization?

Benefit: Protection of essential services.

Drawback: National firms are less efficient.

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