Private businesses create employment, which is good for the Irish economy and reduces the government’s social welfare bill. Private businesses also often contribute to the local community.
A mixed economy allows more than one business to offer the same goods and services. This gives consumers a choice in what they buy. Choice often leads to competitive pricing, which is beneficial for Irish consumers.
The Irish economy encourages entrepreneurship and private business. Advantages of setting up a business in Ireland include:
We will learn more about international trade in chapter 35
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• Anyone can set up any kind of (legal) business. • There is a large, skilled workforce. • There is a low corporate tax rate. • Ireland has good trade links with other countries, so our goods can be exported.
The conditions that make Ireland a good place to start a business also make it attractive to global businesses.
Economic systems In groups, research the economic system in a country of your choice.
• What type of system is in operation? • What evidence supports that this economic system is in operation? • What are the benefits and challenges of this system for the country?
Present your findings to the class.
THE DISTRIBUTION OF ECONOMIC RESOURCES IN A MIXED ECONOMY
In a mixed economy, individuals, organisations (profit and not-for-profit) and the government work together to distribute economic resources.