geopolitical enviroment in Ireland

GEOPLITICAL ENVIROMENT

The Irish government been stable since it’s foundation of state in 1921, before the foundation of Irish state, the Irish was a body of UK starting 1801 with complete participation in the parliament. Current Ireland has fully written constitutions that separate courts, parliament and executive. Furthermore, Ireland provides property right under the Irish constitutions as well as European Court of Justice. Ireland political parties on the other hand had been supporters of pro business which lead the country to one of the fastest growing economy earning the Irish a nick name Celtic tigers in the 21st century. Ireland’s economy had 80% growth in the last decade with a current GDP per capital 122 % with GDP growth rate totaled 6.3 of European average. However inflation seems to be a concern because of 4.7% rate which stands over the EU average. All major political parties of Ireland are pro business that create business friendly environment, especially for foreign investment. The Ahern government cut Ireland corporate tax rat form 16% to 12.5% in 2003 below EU 30% rate. This glories effort by the Irish government made Ireland the most attractive place for U.S. investors by receiving one third of U.S. investment in Europe specifically in the computer, software, and engineering industries. The relationship with U.S. investor’s and Irish government is constructed very strongly that U.S. investors invest three times in Ireland than Netherlands which is the second largest U.S. investment located in E.U. barriers to investment in Ireland are minimal with restrictions applying for agricultural land and Irish airlines. There are no other restrictions concerning transfers, repatriation of profits, and access to foreign exchange. Permission may apply for countries that are not in E.U. economic area. Companies have also competitive advantage based on highly educated task force with 35% graduate of science and engineering compared to 26% average in E.U. Ireland also leads in terms of the number of science and engineering graduates as proportion of the population aged 20-34 in 2000 (16.3 per thousand compared to an EU average of 6.8 per thousand).