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Many multinational companies have set up in Ireland in recent years - Leaving Cert Geography - Question B - 2009
Question B
Many multinational companies have set up in Ireland in recent years. (i) Name one multinational company studied by you and state where it is located. (ii) Explain ... show full transcript
Worked Solution & Example Answer:Many multinational companies have set up in Ireland in recent years - Leaving Cert Geography - Question B - 2009
Step 1
Name one multinational company studied by you and state where it is located.
Answer
One multinational company that has set up in Ireland is Google, which is located in Dublin. Google has established its European headquarters in the heart of Dublin’s Silicon Docks, leveraging the city's technological infrastructure and talent pool.
Step 2
Explain fully one reason why Ireland is attractive to such companies.
Answer
Ireland is attractive to multinational companies primarily due to its favorable tax regime. The country has one of the lowest corporate tax rates in Europe, set at 12.5%. This encourages companies to establish and expand their operations in Ireland, as it allows them to retain more of their earnings and reinvest in further growth.
Step 3
Explain one reason why such companies might move elsewhere.
Answer
One reason multinational companies might move elsewhere is the changing economic landscape, including potential increases in corporate taxes or changing regulations. For instance, if Ireland were to raise its tax rate or if new compliance requirements became burdensome, companies might look for more favorable conditions in other countries.