Analysis of Ireland Business Environment in the Case Study, “Ireland 2004”

Abstract

Factors such as political, economic, legal, sociocultural and legislative environment influence a country’s attractiveness to foreign investment. This paper evaluates how such factors influenced Ireland’s business environment from the time of its independence to 2004. Ireland’s increasing attractiveness to foreign investment was a result of government actions that, for instance, created economic policies favourable for investment. Such economic policies include reduced regulation, and grants and concessions offered to entities that invested in the country, especially in the remote parts. The government timely response to alleviate technological challenges in the country also helped increase the investments by IT firms in the country. Such increased investment was evident in lower unemployment levels and increased per-capita incomes in the country.

Keywords. Political economy, foreign investment, Ireland, Sociocultural, Technology.

Introduction

A country’s political, legal, sociocultural, economic, and technological environments determine its attractiveness to investment, thus affects aspects of well-being such as employment and income levels. Such factors may be interdependent; for instance, a country’s political governance influences legislation and economic policies implemented, which, in-turn, may attract or deter entry of foreign entities into the country (Biswas, 2002). This paper evaluates how political, economic, sociocultural, technological, environmental and legislative (PESTEL) factors influenced Ireland’s economic well-being and attractiveness to foreign investment as highlighted in the case study presented by Hill (2007).

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