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Individual analysis - Case Study Example

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Running Head: INTERNATIONAL BUSINESS ENVIRONMENT IN IRELAND International Business Environment in Ireland Insert Name: Module Code: Module Leader: Date: Introduction In order for a country to prosper economically, the government must act positively towards development for instance lowering taxes on imports and adjusting taxes upwards on exports so that the country controls movement goods and services in and out of the country…
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Download file to see previous pages However, within the combination of various factors that influence development, the government of Ireland embraces peace and socio-cultural integration so that the country is able to recognize business partners as part of their economic development stakeholders hence handling business partners with the diligent they require. Cut in government spending is also a factor which boosted performance of the economy of Ireland. Tax reduction was meant to reduce cost of investment and attract foreign investors in the country. That is why Microsoft was attracted to invest in information technology business in Ireland which generated a lot to economic activities and contributed positively towards the gross domestic product. Economic systems With control over the inflation, the country is able to gain from Foreign Direct Investment (FDI) increasing the number of business transaction between traders and intergovernmental organization to the benefit of the country. However, with peaceful transition in government, the economic state of the country has withstood the tough global economic challenges that face many countries in the global market resulting into heavy losses in business and trade as a whole (Gordon Bigelow, 2003, p. 45). The overall ability of a country to attract foreign investment also depends on membership of an economic trading block. In case of Ireland membership of European economic commission not only provided market to the country but also enabled it to diversify its export products. Initially Ireland depended on the markets of the united kingdom alone which relied mostly on agricultural products only. Through membership of the economic block Ireland was able to open up to competition for its products as well (Philip, 2000, p. 17). In accordance with the PESTEL system, it is important to highlight the role played by the legal issues to ensure that all trade processes are carried out in accordance with the Irish business laws so as to reduce suspicion on unwarranted business deals that are likely to jeopardize the economic state of the country. With the aid of available technology, Ireland was able to engage other countries into trade agreement within the global business laws so as to restrict illegal business while increasing legalized trade between countries and Ireland (Thomas A. Boylan, 2003, p. 64). Further, due to the attractiveness of the country integrated with PESTEL, Ireland was able to provide control, and benefit for foreign companies which overcame the cost and risks they uncured leading to high foreign direct investment. The tremendous economic growth is as a result of government commitment in the pledge to sustain and trusted regulations that would stabilize the political and socio-economic development to eradicate global recession for instance the 2008 recession that was felt by all the global financial controllers (Philip, 2000, p. 104). Many countries prefers trade with Ireland from the 2008 experience where Ireland stood out as the only country that was not shaken by the 2008 economic recession, this greatly influenced the country’s GDP (Gross Domestic Product), this would lead to long term economic performance in the country (Philip, 2000, p. 89). In the initial stage, the independence ...Download file to see next pagesRead More
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