Question

1. Using Ireland as your home country, discuss the country’s situation with regards to inward FDI.

Answer 1

Ireland's positive FDI legacy and its effects on Irish life date back to the late 1950s. Ireland was then a poor country whose economic policies were inward-looking and protectionist. TK Whitaker's revolutionary economic policy will forever change the country's direction, with its focus on free trade and foreign direct investment. Whitaker's industrial policy, along with the work of former Taoiseach (Prime Minister) Sean Lemass, has promoted foreign investment and an open economy that has become a pillar of the economic prosperity of modern Ireland.

Attracting FDI today has stood firm as one of the three pillars of Ireland's industrial policy – along with encouraging indigenous companies to expand and invest in research & development and innovation. It's important to note that there is a long history of FDI in Ireland, with many multinationals operating for a considerable time. For over a decade, nearly 60 per cent of multinationals have been here, with one-third of them starting up operations here more than 20 years ago. Many famous household names that have been loyal to the country for decades: IBM has been here since 1956; Pfizer started up here in the late 1960s, while Apple set up its European headquarters in Cork back in 1982.

Many businesses in Ireland offer support services to multinational operations. Through this relationship, Irish businesses have gained invaluable experience working with the world's best-in-class corporations. When partnering with top international brands, it's helped them develop business processes. Some of our most productive Irish companies today, including pharmaceuticals, technology, and MedTech, have risen from where FDI activity is most powerful.

Ireland's post-Brexit advantages include our contribution to the EU, becoming the eurozone's only English-speaking country, a common law system and an open, efficient tax system. Companies such as, Morgan Stanley, Legal & General, Everest Re, Central Pharma, Bank of America The Standard Club, Coinbase, Citi Group, Barclays, Thomson Reuters and AXA all announced a new or expanded presence here in 2018.

In Ireland a positive effect of FDI has made Ireland a more responsive and multicultural society. For example, in information and communications technology (ICT), foreign workers account for approximately 45 per cent of the sector's jobs. With the ESRI forecasting that in 2019 the unemployment rate would drop to just 5 percent – thousands of foreign workers will be required to fill the new posts.