Introduction
Recession can be referred to as contraction in a country`s economy. The effect caused the government finances and the economy to go down. Consequently, deficits in government have been experienced as many businesses close down and the rate of unemployment has been on the increase. For instance, according to Central Statistics Office, the rate of unemployment has gone up from 4.2% in 2007 to reach 14.6% as of February 2012. The rate of inflation was 2.6% in 2011 and 1.9% this year. There has been a prediction that Ireland economy will still fall further for the rest of the year. According to the report by NCB Stockbrokers, growth national product (GNP) will fall by 1 percent and 0.4 percent in the year 2011 and 2012 respectively. This is due to fall in multinationals hit by the global economic slowdown.
One of the companies which have researched on is Irish parcel carrier Nightline which is a multinational company. Despite recession in Ireland, the market environment of this company in Ireland is big. They do work on the principle that a new network has been developed by their team across Ireland. Here, the customers have the opportunity to exercise self-service. This network was named parcel motel in which specific locations are identified. This new service is convenient in that one does not need to wait at home for parcels delivery or pick a parcel from the post offices.
There is an excellent business infrastructure in this country as well as good telecommunications. Some other great opportunities are People in this country mostly communicate in English, and the country is also a member of European Union. They have legal frame work which is mostly made of English laws. The above factors make Ireland a better place as far as business is concerned. Ireland has some multinational businesses hence; they can practice price discrimination in other countries to take care of those which are not doing well. Another opportunity is that Ireland has got greater network worldwide. They can use this to gather valuable data some of which are positive and can help improve on their businesses.
However, Ireland businesses also face some threats. For instance, the ongoing recession in the country is posing deteriorations in most businesses. Ireland also faces a lot of strong competition more so internationally. Many companies and investors have pulled out of Ireland due to recession leaving the country deprived of income taxes. Technological advances in some powerful countries such as U.S renders Ireland goods out of date hence lack market.
Conclusion
In conclusion, the Ireland government should realize that even at the times of recession, some industries such as Irish parcel carrier Nightline can still thrive, and this is a clear indication of positive development. In order to curb this, the government should greatly cut cost in its expenditure. Furthermore, the issue of employment should also be given a greater look. Many industries in this country have suffered a lot because of recession calling for its fight to the bitter end. This country must do a lot to improve on its economy even though they still have some opportunities. Restricting the Importation of Foreign goods by the Government could be another important measure in protecting the local industries..
