Discuss reasons why multinational companies (MNCs) may choose to locate in Ireland - Leaving Cert Business - Question 3A - 2015

Ireland's status as a hub for major global companies, such as Google and Apple, creates an environment of goodwill that encourages other firms to set up operations. The presence of these established businesses can provide networking opportunities and collaborative ventures, thus attracting even more MNCs to the region. This is evident as various internet companies have followed in Google's footsteps with offices in Dublin.

MNCs are also drawn to Ireland due to the availability of a highly skilled and well-educated workforce. Many employees in the tech sector hold advanced degrees and are engaged in research and development roles. For example, Google has tapped into this resource by establishing its European headquarters in Dublin, where it employs a significant number of skilled graduates.

The Industrial Development Authority (IDA) Ireland plays a crucial role in attracting foreign direct investment. The IDA collaborates with companies like Microsoft and Facebook, which in turn encourages other multinational corporations to invest in Ireland. Approximately 150,000 people are directly employed by these firms, showing the significant economic impact of such incentives.

The introduction of the Single Market has removed trade barriers within the EU, allowing MNCs easier access to broader European markets. Companies operating in Ireland can benefit from the free movement of goods, services, and labor. This access enables them to scale operations efficiently, making Ireland an attractive base for regional operations.

Ireland's English-speaking population provides a notable advantage for MNCs, as English is the primary business language globally. This linguistic compatibility lowers the barriers of communication for international companies, enhancing their operational efficiency and appeal. As a result, many MNCs prefer to establish their presence in Ireland to leverage this advantage.