Buisness test

Outine what is meant by foreign direct investment?

refers to investment made by a company or individual fromone country into a buisness located in another counrty with the aim of establishing a lastin interest and control

discuss how the irih government promotes foreign direct investment

low corportion tax, labour force, sustainable work hours, improvements in infrastructure, sill educated work frce, IDA buisness aim is to support foreign companies to help them locate there and provies them to access resources.

discuss the key stakeholders for a large multinational company like innovateTech

customers- tey would be interested in buying the smartphone and have a high interest in the company.

suppliers - shareholders owners, investments, share the profits

government - external shareholders, tax in the buisness, work , house , regulate the buisness to ensure that all the rules are being followed.

employees - carrying out tasks in the company and in charge of the sales

how would freshmart classify its four key stakeholders

government - high power low interest

owner/ shareholder - high power high interest

costumers- low power high interest

empoyees - low interest and low powera

Nationalisation

When the government buys or takes control a privately owned business to make it state owned

Privatisation

When a government owned company is sold to private individuals or private companies

Three reasons to privatise a company

To attract investment- selling to private owners bring in funds to improve and expand operations

To introduce new technology- private forms often bring in new infrastructure

To benefit external experts and management skills - they run things more efficiently

Explain the role of the European Commission in creating policies that have an impact on Irish businesses

Proposes new eu laws and policies and ensures that eu rules are implemented and enforced across state members

Explain the role of the European Parliament in creating policies that have an impact on Irish businesses

Represents eu citizens directly. It reviews debates and votes to approve or reject proposed eu laws alongside the council

What is a tariff

A tax or duty placed on imported goods coming into a country

What is a quota

A physical limit on the maximum quantity or volume of a specific good that can be imported

Two ways tariffs or quotas can influence cost price or supply

Tariffs make imported raw materials more expensive for Irish firms. Forcing them to raise their selling prices to maintain profit

Quotas limit the availability quantity of imported goods forcing Irish businesses to find alternative domestic or Eu suppliers

European central banks D

Manages the euro currency and the EU’s monetary policy

European Court of Auditors E

Audits the spending of the EU budget and reports on EU finances

European Parliament A

Directly elected by the citizens of all member states of the European Union

Council of the European Union C

Key decision-making body in the EU, meetings attended by relevant ministers of each state

European Commission F

Responsible for the day-to-day management of the EU and proposes new EU laws.

Cooperative relationships

Stakeholders work together towards shared goals for mutual benefit ("win-win")

Competitive relationships

Stakeholders compete against each other where one side gains at the expense of the other ("win-lose").

Suggest two ways a business can resolve conflict between stakeholders:

• Negotiation / Industrial Relations Dialogue:

  • Direct discussions between management and stakeholder representatives (e.g., trade unions) to reach an agreeable compromise.

    
    

    
    

• Third-Party Mediation / Arbitration:

  • Using an independent external body (such as the Workplace Relations Commission - WRC) to help mediate or issue a binding decision.

Stakeholder Mapping for McDonald's

• Customers:

  • High interest in new menu items (flavours, quality, price).

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• Employees / Workers:

  • Affected by new training requirements and increased operational workload to prepare complex items.

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• Suppliers:

  • Affected by changes in raw material orders (e.g., increased demand for ice cream mixes, garlic bites, specialty meat cuts).

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• Franchisees / Management:

  • Affected by operational adjustments, menu marketing, and potential sales revenue increases

Two steps RTÉ might take to strengthen corporate governance

• Increase Transparency and Independent Oversight:

  • Appoint independent non-executive board members to oversee financial reporting and prevent conflicts of interest.

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• Establish Strict Financial Controls and Disclosure Audits:

  • Implement mandatory public reporting and audits for executive compensation and vendor contract

Outline the contribution of Foreign Direct Investment (FDI) to the Irish economy

• Job Creation: Directly creates employment opportunities (e.g., 1,200 high-skilled jobs created by GlobalTech Inc.).

  
  

  
  

• Capital Investment & Infrastructure: Injects substantial foreign capital into the local economy (e.g., €250 million investment in Cork).

  
  

  
  

• Tax Revenue Generation: Generates corporate tax revenue for the state, which funds public infrastructure and services.

  
  

  
  

• Knowledge and Innovation Transfer: Introduces advanced technology, research, and technical skills into the domestic workforce.