Many multinational companies (MNCs) have set up in Ireland in recent years - Leaving Cert Geography - Question i - 2007

Ireland is attractive to multinational companies, specifically due to its low corporate tax rate. The corporate tax rate in Ireland is 12.5%, which is significantly lower than in many other European countries. This favorable tax environment encourages MNCs to establish operations in Ireland, allowing them to maximize their profits. Additionally, this tax incentive attracts foreign direct investment, as companies seek to benefit from the financial advantages provided by the Irish government.

One reason why multinational companies might move elsewhere is the increasing pressure for higher taxes. As governments around the world continue to address budget deficits and focus on public spending, they may implement higher corporate tax rates or tighter regulations. This shift can make other countries more appealing to MNCs that are seeking to maintain profitability and lower operating costs. Additionally, factors such as changing political climates and trade agreements may also influence these companies' decisions to relocate.