Global Business Strategies
Ms. Carol O’ Laughlin
University of Phoenix
United States exports into Ireland in 2010 were over $7 billion. Over 600 companies operate in Ireland. Ireland had a fast economic growth in the 1990s but the economy began to decline around 2006 which took a lot of people by surprise. Ireland began a recession in 2008 and has received billions in bailout euro. In 2010, many banks (including the EU) GAVE $85 billion euro in bailout money to support recovery. There were many reasons for the decline including the collapse of the property market. The unemployment rate has risen very high (14.2%) since 2008 (6.3%). However, in 2011 Ireland was the UK’s 5th largest export market for goods and exceled in food and drink divisions (UK Trade & Investment, 2012). The country still remains wealthy and had a GDP of over $45,000 in 2010. Ireland has invested over $32 billion in the U.S. in 2009 and has over 80 thousand Americans hired by Irish companies (Export.gov, 2010). The following information will provide potential risks for doing business in Ireland.
Ireland is a country with moderate levels of economic risk and low levels of political and regulatory risks and no legal risks were founded. Since the recession, there have been years of growth and Ireland’s economy is beginning to improve. The exchange and repatriation of funds risks are at a slight moderate/ slight high level. Repatriation is the process of converting a foreign currency into the currency of one’s own country. The amount that the investor will receive depends on the exchange rate between the two currencies being traded at the settlement time (Ambest, pp1).
Ireland is a member of the European Union and one of the original eleven countries to adopt the Euro as its currency. As the economy declined, Ireland’s fiscal position deteriorated. In response to Ireland’s financial crisis, the Irish government has taken the...