New Geography in Action Junior Cycle Geography Multinational corporations (MNCs)
: Figure 8.18 Examples of multinational corporations (MNCs) with bases in Ireland
Multinational corporations make their products in many different countries. Their headquarters are located in one country and then they have branches in other countries throughout the world. Because of globalisation, it is a lot easier for big companies to move to different countries. It makes it easier to buy and sell across all areas of the world.
Go to Chapter 21 to learn more about globalisation. CASE STUDY MNCs in Ireland: Google
Over recent years Ireland has become a focus point for many of the world’s MNCs, especially technology companies. Google first came to Ireland in 2003, and provided 100 jobs. It now employs 2,500 people.
There are several reasons why MNCs have chosen to locate in Ireland:
• Ireland is a member of the EU. This means that it is easy for the MNC to access markets and labour force. Google employs 65 different nationalities in Dublin.
Boston Scientific.
: Figure 8.19 Google office, Dublin
• There is a highly educated workforce. • English is the language of business and the main language in Ireland. • Corporation tax is low (12.5 per cent). One in five people in Ireland is now employed by an MNC.
When MNCs locate a base in Ireland, it is known as foreign direct investment (FDI). It is great for the country as it creates employment. The major downside of this is that the MNCs can leave at any stage they want, leading to devastating job losses. This creates uncertainty in the economy.
DID YOU KNOW? In 2009, Dell announced that it was cutting 1,900 jobs in Limerick because it was moving its production plants to Poland in order to cut costs.
