• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Explain three factors that have contributed to the rapid growth of the Irish economy." 10 marksThe three main factors that contributed to the growth of the Irish economy were ...The increase in government spending within the economy

Extracts from this document...

Introduction

Heather Sanders: Economics Essay - Mr Doran Group 2 "Using Figures 1 and 2, describe the growth of the Irish economy between 1990 and 2000." 5 marks During 1990-1995, average percentage growth in Ireland was around 4.5%. This grew to around 8.3% between 1995 and 2000. Over a small period of time, the average percentage growth within Ireland nearly doubled. However over a course of four years, between 1997 and 2000, the percentage change in GNP (Gross National Product), which is what annual percentage growth is measured in, changed somewhat. Between 1997 and 1998, the percentage change in GNP fell from 9.4% to 7.9%. Then from 1998 onward to 2000, the percentage change in GNP gradually rose to 10.4%, which is higher change then what was the original figure for 1997. This indicates improvement within the Irish economy and thus, growth. Explain three factors that have contributed to the rapid growth of the Irish economy." 10 marks The three main factors that contributed to the growth of the Irish economy were ... ...read more.

Middle

The creation of competitiveness amount Irish companies allowed them to expand and be more involved in other areas such as the EU markets. This led to increased demand from other economies other than the Irish, which then again, led to the need for more production and thus employment. This gain links back to creating the multiplier effect but it also links to increased profits from overseas which brought money back into the country. "Assess all the possible effects of a continuation in the rapid growth of average wages for the performance of the Irish economy." 20 marks An economy, such as the Irish, can start to grow at an astonishing rate to begin with. But as the economy evolves and improves, the rate of growth starts to decrease due to the economy passing a threshold of extent to which the economy can evolve. Was the economy reaches this point, where wages and prices are high, there could be an effect of where customers are unwilling to purchase Irish goods as they are far too expensive, and could be bought elsewhere at a cheaper price. ...read more.

Conclusion

If this happens then companies can loose profits and if workers are still being paid the same amount as when there was prosperity for the company, then there will arise the issue of the company not being able to pay the workers with reduced company profits. They cannot reduce the worker's pay, therefore they have to make job cuts, which in itself can spark of a downwards multiplier, of consumers having less disposable incomes which means there is less spending in other industry which again reduces their profits, and so on and so forth. Also if the average wage packet continues to rise, workers are going to want to be paid for doing simple jobs that are low paid elsewhere in the world. This could be persuaded companies to move abroad to where workers do not seek to be paid high wages compared to the Irish workers, thus saving company expenditure and increase company profits. This means that there is a decrease in available jobs for the Irish workers, an increase in unemployment within the Irish economy and again this could spark of a downwards multiplier within the economy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Development Theories - Describe the Harrod-Domar model of growth

    may be true for certain times of the year however during planting and harvesting the need for labour is critical to the needs of the village. The assumption of a constant demand for labour from the industrial sector is questionable.

  2. Free essay

    What are the main characteristics of a free market economy and centrally planned economy?

    In addition to corruption, a similar problem of the black market can arise. In Georgia, during the time of its transition, black market became a big problem because they didn't have resources like oil supplies or natural gases to drive their economic growth, which lead to a quarter of the

  1. Labour is one of the four factors of production along with land, capital and ...

    Public company: They can be identified as LTD. Any five or more people may apply for incorporation as a public company and then invite the public to invest in shares. Holding company: Is one, which acquires sufficient shares to give it control over public company, which becomes its subsidiary.

  2. Outline the main features of a market economy and compare it to a Command ...

    command economy there would be laws and government guidelines to prevent this. An example of this could be in a factory in a free-market economy, which emits toxic fumes and does nothing about the damage.

  1. China or India? Many companies ask themselves this question. Due to saturated markets, increasing ...

    The ones that are required by the local government? These are less demanding than in its home country but are you allowed exploiting the environment, in a country that has already the majority of the most polluted cities in the world? Employment practices are as well a hot topic.

  2. Chinese economy sets for soft landing in 2005.

    This means looking beyond the bottom line and balancing the needs of various stakeholders and shareholders, without neglecting any individual constituency. It is important too for corporate leaders to articulate a vision, as well as a long-term "dream". The setting of good goals and objectives must be combined with practical means of measuring progress.

  1. Should the government increase spending to get out of a recession?

    Looking at the views of professionals can prove highly insightful. Barack Obama disagrees, and argues for an increased in government spending to soften the blow of an economic downturn11: "The recovery plan and the financial stability plan are the immediate steps we're taking to revive our economy in the short-term.

  2. GDP and Growth

    However, the 'real' GDP in 2000 was �1,035,295, which means the same amount of output but using the price from 2003. In other words, when comparing the 'real' GDP from one year to another allows us to know the amount of outputs that the country has produced.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work