Essay About Foreign Ownership Of Business And Period Of Great Economic Growth

Fdi & Ireland – Essay – aldodico
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Fdi & Ireland
ALDO DI COSMO675451During the nineties Ireland had a period of great economic growth, gaining the nickname of “Celtic Tiger”. There are different factors from which the growth came. Experiencing a period of high tariff barriers and strict prohibitions on foreign ownership of business in Ireland, they came up with the idea that those were not right choices, so the government shifted to policies that could attract foreign investments, such as lowering of tariffs and joining to the GATT. After the IDA (Industrial Development Authority) was created in order to attract foreign businesses. Its strategies included the shift from an agricultural and farming economy to a pharmaceutical, software and chemical industries based economy. A great number of foreign firms started to invest in Ireland; firms such Pfizer, Intel, eBay, Google came, through the years, to Ireland.  Ireland’s economic success is highly linked to FDI. Foreign investments came to the Ireland in search of resources and efficiency: Ireland had a well-educated workforce and, furthermore, they had low corporate taxes and ready access to the markets.  But Ireland’s success was not only because of FDI, because the government fostered the economic growth with prudent policies, furthermore the economic boom of the 90s of US lifted up also Ireland’s economy. FDI represents a good economy developer, it allows the expansion of technology, the development of industries and it gives the opportunity to create new work places. FDI is a relevant component of GDP and a good indicator of the financial situation. It also allows the country to create a strong imagine with the other future foreign businesses, leading to the situation that many firms are attracted to invest in the territory. Furthermore foreign investments represent a good complement for local productions that help to increase nation’s wealth. With this in mind subsidies in order to attract FDI represents a proper opportunity to contribute to the economic growth of a country.  But, there are several reasons to not subsidize FDI, because if there are no externalities that can affect foreign investments there is no need of subsidies. In the case of Ireland FDI represented a crucial factor for economic development, but as a result there was a domination of the local economy by foreign firms and any action aimed to undermine them could affect the country’s economy. This, together with the technological dependence and a change in lifestyle represent big disadvantages of FDI. So FDI had been successful to transform the nation, but it also brings problems of its own.

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(2016, 04). Fdi & Ireland. EssaysForStudent.com. Retrieved 04, 2016, from
“Fdi & Ireland” EssaysForStudent.com. 04 2016. 2016. 04 2016 < "Fdi & Ireland." EssaysForStudent.com. EssaysForStudent.com, 04 2016. Web. 04 2016. < "Fdi & Ireland." EssaysForStudent.com. 04, 2016. Accessed 04, 2016. Essay Preview By: aldodico Submitted: April 14, 2016 Essay Length: 550 Words / 3 Pages Paper type: Essay Views: 494 Report this essay Tweet Related Essays Northern Ireland Conflict - Religion Vs Politics Northern Ireland Conflict-Religion vs Politics The conflict in Northern Ireland is likely one of the most closely watched and hotly debated disputes of our time. 5,207 Words  |  21 Pages Fdi in Eastern and Central Europe Globalization, Transnationals and economic policies. (a) To what extent has FDI been important to the economic development of countries in Central and Eastern Europe over 2,421 Words  |  10 Pages Foreign Direct Investment in Ireland Introduction Foreign Direct Investment has had a profound effect on the Irish economy since 1990. In this essay I will examine the role of foreign 2,468 Words  |  10 Pages A History of Ireland In the land of fox hunting, shamrocks, and pubs, a century old confrontational relationship is still being plaid out. Religion is often the grounds for 1,585 Words  |  7 Pages Similar Topics Exchange Rate Volatility Fdi Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter