Case Study - Internaional Business report Essay

Case Study - Internaional Business report - Essay Example This is done, firstly, by utilizing the PESTEL framework of analysis. In addition to this, other lesser known factors that lie outside the PESTEL framework are also discussed. Political Climate: On the political front, Ireland has moved on from a troubled past, where terrorism and chaos were the dominant theme for the nation. With greater internal harmony and more placid religious and ethnic intolerance, the country is finally poised to fulfil its economic potential. The roots of the present Irish government’s policy framework lay in the radical changes brought about by the political leaders of the early 1980’s. Such public welfare programs such as the â€Å"National Wage Partnership Program fostered cooperative industrial relations, reduction in taxes, targeted government programs to attract FDI, and financial support from the EU† (Ireland in 2004). Programs such as this, acted as sound precedents for further policy initiatives, continuing to the present day. This succinctly explains how the political atmosphere in Ireland had contributed to its newfound prosperity. Economic Factors: To take the case of the fiscal year 2002, the FDI inflow to Ireland had risen to 25 billion dollars – a whopping 150 percent increase over the previous year. This came at a time when the rest of the developing world was struggling with economic sluggishness. To understand the success of the Irish economy we have to look at the source nations from which these investments are coming in. Unlike many other emerging markets, the primary investors in Ireland are the UK, the Netherlands and of course, the United States. This diversity helps reduce dependency on regional economic activity and helps mitigate the vicissitudes of global fiscal trends. Moreover, â€Å"this has grown rapidly over the past two decades, from $32 billion in 1980 to $157 billion in 2002. FDI plays a capital role in the Irish economy: the ratio of inflows to gross