Executive Summary
Ireland has been one of the lucrative places to start a business enterprise as a result of its favorable environment, which is necessary and favorable for business to thrive well. This paper basically evaluates the factors that have precipitated the emergence of Ireland as one of the appropriate places to carry out. Further, the study will entail on the factors, which have made Ireland promising places for business opportunity. The competitiveness of a business to thrive in a country depends on various environments such as the legal environment, the market, political environment, cultural environment, economic environment. These factors in regard to Ireland will be discussed in detail, in this paper.
Introduction
Business in Ireland has been renowned to thrive well due to a variety of strategies that the government of Ireland has implemented in order to encourage the establishment of Multinational Corporations in the country. Additionally, the factors, which have been integrated in the country, also encourage a lot of investment opportunities in the country. It is thus obvious that strategies Implemented by the government have enabled Ireland to be one of the promising places to do business. On the other hand, Ireland is strategically located and thus acts as a gateway to global markets. It has also employed various marketing strategies which have boosted sales of products within and around the globe. Therefore, in the study of the possible sale of a United States’ product in Ireland and subsequent conducive place to do business, some of these factors highlighted above are going to be discussed in details.
Markets, Demographics, Resources
Major Market Opportunities
Ireland has a myriad of business opportunities available for the interested and willing investors. Generally, as a result of favorable business conditions and regulations, business opportunities in Ireland are of different categories and sectors in the economy. Therefore, introduction of some government policies such as tax allowance for intellectual property have enabled Ireland to gain reputation as one of the best place to carry out business operations. The Ireland economy is thriving, and the income level of the people is relatively high. Therefore, Ireland citizens make a thriving market for business establishing their operations in the country due to their high purchasing power.
Natural Resources, Topography, Water, Climate, Energy
Another important factor to put into consideration is the topography and natural resources available in Ireland. As a result, more business men find it more promising to undertake business operations in Ireland due to the presence of natural resources. Consequently, they can be explored, exploited and utilized in different production processes or even sold. On the other hand, Ireland has been endowed with great water ways and favorable climate, which makes the establishment of business entities necessary. Additionally, Ireland energy cost in Ireland is relatively low, thereby leading to low operating costs for large companies. As a result, more multinational corporations find their way to Ireland in order to minimize the energy consumption costs thus increasing the amount of revenue.
Population, Density and Distribution, Age, Growth
Ireland has a high population density, which consequently impacts on the sale of a product in the market. Generally, high population density creates a high demand for a product or a commodity thereby increasing the average returns of the product. Additionally, the growth rate and distribution of the population has been another important factor in facilitating Ireland to be a major business centre.
GDP, Growth, Inflation
Over the recent past, Ireland has experienced a low level of inflation which is moderate for the economy to grow. On the other hand, the country’s GSP has been stabilized too with a lot of economic growth which has precipitated to the good reputation about Ireland on economic growth and development.
Per capita income, income distribution, regional income
According to current statistics, Ireland has reported quite an outstanding performance in per capita income, in the country. Generally, per capita income is an accurate measure of the country’s GDP. Therefore, with high per capita income, it implies that every individual in the country is well off. Equal distribution of income in Ireland is another factor that has precipitated to the improvement of Ireland’s business environment. In summary, it implies that every individual is capable and willing to undertake a business enterprise.
Size Of Workforce, Rural Vs. Urban, Immigration
Ireland’s economy is associated with large, skilled and competent labor force, which is important for the business activities and production processes available in the companies. On the other hand, there is a balance between rural and urban area population. Additionally, there is no much migration of people from rural to urban since people in the rural areas specialize on economic activities suiting those areas. For instance, as a result of favorable climate and flat terrain, most people in rural areas practice agriculture. Business Environment
Imports and exports
Ireland provides an efficient system of importing materials as well as exporting goods abroad. Additionally, Ireland has adopted an encouraging tax environment, which entails an incentive tool for businessmen to make exports and imports to and from the country without incurring a lot of costs.
Foreign direct investment
Generally, Ireland government ensures that there is direct foreign investment through implementation of favorable business strategies which encourage investors to make investments in the country. In this case, Ireland government ensures that the corporate tax rate, on trading income, is 12.5% which is relatively low. On the other hand, non-trading income is subjected to a tax rate of 25%.
Globalization Drivers
Increased global competition on economic activities has turned Ireland into a busy and very active country in business activities and improvement in economic growth. As a result, there has been a lot of economic development witnessed in Ireland which consequently makes a significant impact on Ireland as a business hub. Increased demand on goods and services has also played a crucial role in Ireland’s reputation as a good business site.
Cultural Environment
Religions, Attitudes and Beliefs
Ireland has different cultures with various cultural practices incorporated within the country. However, cultural aspects are quite respected by the community as a result of interaction with a lot of people with different cultures. Therefore, Ireland acknowledges and appreciates cultural behavior of different foreign communities. It is because of this important aspect that Ireland is well known to thrive well in business operations.
Technology
Another important aspect about Ireland is the rampant and ever dynamic technology present in Ireland. Technology has been, to larger extends, improved and incorporated in the production processes. Therefore, encourage the establishment of companies in the country.
Economic Environment
Monetary and Fiscal Policies, Interest Rate and Taxation
Ireland has experienced one of the most conducive economic environments necessary for the establishment of business enterprises and subsequent economic growth. Fiscal policies have been implemented in order to control interest rate in the country. Therefore, Ireland’s monetary policies are effective and efficient in controlling the country’s interest rates and in turn, positively, affect investment opportunities.
Balance of Payment
Ireland has maintained quite favorable balance of payment over the recent past. Therefore, it is evident Ireland has managed to utilize its monetary policy techniques in the most appropriate way.
Political Environment
Trade agreements and restrictions
Ireland has a trade operating system, which enables free trade in and out of Ireland without trade barriers. Therefore, promotion of free trading activities encourages more investors.
Cooperative military and security agreements
Ireland is one of the countries that maintain a neutral stance on issues concerning military. On the other hand, Ireland has exhibited a continuous period of political stability. This is thus an important aspect in attracting investors in the country.
Political forces
Government stability, protection, hostilities, terrorism
The government of Ireland has experienced quite a long period of political stability and has been a member of the European Union, EU. Additionally, Ireland has also been a member of various population international organizations. On the other hand, Ireland has not been associated with any terrorist attacks experienced in most European countries. Therefore, all these factors have positively contributed to the positive business environment in Ireland.
Legal Environment
Intellectual property laws and customs
The government of Ireland has embarked on policies which allow tax allowances on intellectual property. Therefore, the government has encouraged the establishment of multinational companies through intellectual property tax allowance. Taxation
Ireland taxation rate is very much company friendly, and it allows a small deduction on trading income and similar non-trading income. In this case, 25% is taxed on the non-trading income while 12.5% is taxed on trading income. Additionally, if there are any foreign dividends, they are subjected to very low tax rate.
Antitrust, corruption, accounting laws
Ireland is a corruption free country which positively attributes to the establishment of business enterprises. Additionally, there are strict accounting laws which determine the analysis of financial statements.
References
Price, Waterhouse Coopers. (2000). Doing Business in the Republic of Ireland. New York: Price, Waterhouse.
International Business Publications. (2011). Ireland: Doing Business, Investing in Ireland Guide. California: International Business Publications.
Lagan Consulting . (2005). Northern Ireland Yearbook 2005. New York: The Stationery Office.
Price, Waterhouse . (2002). Doing Business in Northern Ireland. California: Price, Waterhouse.
Terri Morrison, W. A. (2003). Kiss, Bow, Or Shake Hands: The Bestselling Guide to Doing Business. New York: Adams Media.
