Transnational Firms Flashcards
What is a multinational company (MNC)?
An enterprise that operates in multiple countries, with headquarters in one country and production or services in others.
Why does Ireland attract MNCs?
Low corporation tax, EU membership, English language, skilled workforce, and support from IDA Ireland.
What is Ireland’s corporation tax rate?
12.5%.
How does EU membership benefit MNCs in Ireland?
It provides access to the EU single market, allowing free trade with over 450 million consumers.
What role does IDA Ireland play?
It supports and incentivises MNCs through investment promotion and setup assistance.
What are the benefits of MNCs for Ireland?
Direct employment, increased tax revenue, and an improved balance of payments.
How many people were employed by MNCs in Ireland in 2019?
230000
How do MNCs improve Ireland’s balance of payments?
By exporting goods and services and bringing in foreign currency.
What challenges do MNCs present for Ireland?
Profits repatriated abroad, competition for local firms, and the risk of MNCs leaving due to foreign incentives.
Why do Irish firms struggle to compete with MNCs?
MNCs often have greater resources and market dominance, limiting opportunities for local businesses.
What risk does the US pose to MNCs in Ireland?
Foreign incentives to bring American firms back could cause job and revenue losses in Ireland.
