2. Learning Targets
What are the factors of production?
Primary, Secondary and Tertiary sectors
Changes and Trends in these sectors
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5. Land
• Anything provided by
nature that helps us
produce G&S
• E.G. Sea
Soil
Gas
• Payment: Rent
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6. Labour
• Any human effort
that helps to produce
G&S
• E.G. Doctor
Accountant
Factory worker
• Payment: Wages
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7. Capital
• Anything that is
made by humans that
is used to help
produce G&S
• E.G. Machinery
Computers
• Payment: Interest
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8. Enterprise
• Organises land labour
and capital by setting up a
business and bears the
risk of success or failure
• E.G.
Entrepreneur
• Payment: Profits
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9. The Primary Sector
Also known as the ‘Extractive Industry’
Based on natural resources
Non- Renewable: Limited supply. They
must be used sparingly
e.g. Oil / Gas
Renewable: If carefully managed they
can last indefinitely e.g. Solar power/
crops/ Wind power
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10. Agriculture
Facts:
It accounts for 7.7% employment in Ireland
It makes up 10.5% of Ireland’s total
exports
80% of agriculture produce is exported
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12. Problems:
Decline in EU Grants/payments:
Instead of receiving many different grants and
payments farmers just receive one single farm
payment regardless of how much output is
produced in a year
Consumer confidence:
Has declined in recent years due to excessive
use of pesticides/ development of diseases e.g.
Mad cow disease. We need to protect ‘Green’
image.
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13. Weather:
The IFA estimated that the bad weather
this year cost farmers about €160m in
extra animal farm feed and lost output.
Competition:
Small farmers find it difficult to remain
competitive and need to cease
opportunities of taking over new farms or
diversifying their product range.
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14. Trends:
Beef & milk are increasing in price as demand
is increasing due global population growth
Continued growth in organic food production.
Positive effect on Ireland’s ‘Green’ image
Food product traceability is necessary to
reassure customers of quality
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15. Fishing
Small industry in Ireland contributes to €700
million annually to national income
Provides employment for coastal
communities, 11,000 people.
As part of the EU other EU countries fish here
– Increased competition
Intro of quotas limits amount that can be
caught
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16. Problems/ Trends:
Restrictions: EU has imposed fishing
quotas on the size of fish catches which
restricts development in the industry
Size of boats: Most of the fishing fleet in
Ireland is comprised of small boats. They are
not equipped to travel long distances to find
big catches
Overfishing: Stocks of some fish species
is very low
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17. Forestry
Small industry in Ireland
Ideal climate conditions for the production of
trees
Grants provided to farmers to develop forests
Slow return on investment
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18. Problems/ Trends
Slow return on investment
Grants available to farmers to plant forests
Coillte, state company own and run most of
the forests in Ireland
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19. The Secondary Sector
Construction
• Involved in building houses factories,
offices & infrastructure e.g. roads
• Uses a high % of home produced raw
materials
• Is labour intensive – creates employment
2007 Employment: 300,000
Output = €40 billion.
2011 Employment: 100,000
Output = €10 billion.
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20. Problems/ Trends:
• Economic fluctuations: Low economic activity
resulting in decrease in demand for construction
industry – decrease in employment
• Regulations: New laws have been introduced
which places increased responsibility on the
construction industry with regards to their builds
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22. Manufacturing
• Converts raw materials into finished goods
• Important industry creating direct and
indirect employment
• E.G. Manufacturing industries:
1. Agri – businesses
2. TNCs
3. Indigenous businesses College
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23. Problems/ Trends:
• Employment: Decreasing significantly in
this industry. Cheaper labour abroad.
• Knowledge economy: Increased focus on
marketing Ireland as a knowledge based
highly technical workforce to encourage
foreign investment
• New Technology: Move towards ICT and
robotics for production
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24. 1. Agribusiness
• Supply products to farmers & manufacture farm
produce into saleable products
Problems
• Competition: These businesses are small.
Difficult to compete with larger foreign companies
• R&D: Low investment in research and
development. Lack of new product development
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26. TNCs:
• Multinational company
• Head office in one country but operate in a
number of countries (subsidiary)
• Employs over 100,000 in Ireland
• IDA responsible for attracting TNCs to Ireland
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27. What attracts TNCs to Ireland?
Educated workforce
Location within the EU – Access to EU
markets
Grants provided by IDA
Low corporation tax
High levels of productivity achieved by Irish
businesses
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28. Benefits:
• Employment: Large amount of job
creation due to establishment in Ireland
• Corporation Tax: Contribute to National
budget as they pay 12.5% tax on profits
• Training: Employees get world class
training and skill development
• Spin off industries: These are created
locally which contributes to indirect
employment
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29. Problems:
•Loyalty: As they are developed in another country if
the economy is doing badly they have no issue with
leaving and moving their subsidiary to another
country.
•Profits: The profits made by the TNC are sent back
to the headquarters.
•Closure: As an economy we are over reliant on
TNCs. If they close it has a huge negative impact on
local communities as jobs are lost and spin off
industries lose business. Chanel College
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30. Indigenous Firms:
•Businesses that are Irish owned and produce G&S
in Ireland
•Enterprise Ireland* government agency that
supports and encourages development of Irish
businesses
•Most indigenous firms are SMEs – Small medium
Enterprises
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31. • They provide assistance and capital to firms at
start up stage
• They provide advice & support to start up
businesses
• They assist firms with product and process
development
• Support and encourage firms to export their G&S
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32. Benefits:
•Loyalty: Irish firms are loyal, unlikely to relocate
somewhere else.
E.G. Group opening new science &
innovation centre in Kildare. This will create 900
jobs.
•Support: Purchase raw materials and supplies
from local businesses
•Profits: Reinvested back into Ireland & contribute
to revenue for the government
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33. Problems:
•Export market: Only a small no. of Irish brands are
recognised abroad reducing their selling power in
foreign markets
•Wages: High wages expectations in Ireland result in
some manufacturing firms to locate abroad to avail of
lower costs of production
•R&D: Not enough investment compared to
competitors
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34. Trends:
• World class manufacturing: Has developed
in Ireland as valuable training is provided.
• R&D: Investment is growing. Required for
growth and expansion of product range of
business
• Technology: Big emphasis on technological
based industries in the future
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35. Tertiary Sector
The largest and fastest growing sector in the Irish
economy.
Examples include:
Financial services - Medical services - Transport services
- Leisure services.
Most service industries are labour-intensive and this
has a very positive impact on job creation.
Improvements in IT have also led to growth.
Tourism is a significant service sector in Ireland.
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36. Trends:
• ICT: Increase in investment in broadband and
social media
• Telecentres: Opened to deal with after sales
services
• Childcare: Increase in childcare services in line
with population growth
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37. Question:
Explain using examples the impact of TNCs in Ireland.
(20 Marks)
Solution:
1.Explain acronym. Define TNC
2.Name: Employment
Explain: Explain
Name: Spin off industries Link E.G.S
Explain:
Name: Government Revenue
Explain
Name: WCM – Training
Explain:
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