Macroeconomics Term Paper: Wells Fargo in Ireland | | | | |

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Wells Fargo was founded in 1852 by Henry Wells and William G. Fargo and opened for business in the gold rush port of San Francisco. Wells Fargo offered banking (buying gold and selling paper bank drafts as good as gold) and express delivery of the gold and anything else valuable. By the 1860s, Wells Fargo earned everlasting fame and its corporate symbol, the stagecoach.
In 1888, Wells Fargo became the country’s first nationwide express company. By 1918, Wells Fargo was part of 10,000 communities across the country, however that year the federal government took over the nation’s express network as part of its effort in the First World War and Wells Fargo was left with just one bank in San Francisco eventually expanding in 1923 to two banking halls. In the 1980s, Wells Fargo expanded into a statewide bank, became the seventh largest bank in the nation, and launched its online service. In the 1990s, Wells Fargo returned to its historic territory throughout the Western, Midwestern and Eastern states. Today, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. According to Forbes.com, as of May 2013 Wells Fargo’s market cap was $201.35 billion.
Wells Fargo’s global banking group offers commercial and corporate customers a broad range of products and services for doing business overseas. Ireland is one of the many foreign countries that Wells Fargo has a global banking location. Wells Fargo’s international headquarters is located in Dublin, Ireland. The Republic of Ireland is the second largest British isle, covering 26,598 square miles and bordered to the northwest by Northern Ireland. Ireland is located in the Atlantic Ocean and separated from Great Britain by the Irish Sea. According to the 2014 Index of Economic Freedom, as of 2014 the population of Ireland is 4.6 Million with a growth rate of 0.9%. The literacy rate in Ireland was 99% as of 2003.
The levels of education in Ireland are primary, secondary, and higher (often known as “third-level”) education. In recent years, further education has grown greatly. Growth in the economy since the 1960s has driven much of the change in the education system. Education in Ireland is free at all levels, including college (university), but only for students applying from the European Union. For universities, there are student service fees which students are required to pay on registration, to cover examinations, insurance, and registration costs. In Ireland the achievement of secondary diplomas is 89% and post-secondary diplomas is 47%.
Irish Gaelic and English are the most widely spoken languages in Ireland. English is the most widely spoken language on the island overall and Irish Gaelic is spoken as a first language only by a small minority, primarily, though not exclusively, in the government-defined Gaeltacht regions in the Republic. A minority speak Irish Gaelic as a second language, with 40% of people in the Republic of Ireland.
The majority of people in Ireland are Roman Catholic. Until the 1990s, the church had a very strong voice in society as well as politics but their role has weakened. Religion still very much has a say in society’s view of family and marriage. The extended family is still greatly the dominant social structure although urbanization is having an impact.
When it comes to conducting business, Irish businesspeople are very comparable to businesspeople in the United States. Irish businesspeople are generally less formal and more outwardly friendly than in many European countries.
Imports are the goods and services bought domestically but produced in other countries. On importation of goods into Ireland from countries outside the European Union, the importer or his /her agent must complete customs entry formalities. Electronic data transfer of Single Administrative Document (SAD) declarations makes the appropriate customs entry to Revenue’s Automated Entry Processing (AEP) system using the Direct Trader Input (DTI) facility. Using the AEP system, importers or their agents may clear consignments at import and pay any charges (customs duty, VAT, excise duty) due through an approved deferred payment account, bank draft, money order or bank guaranteed check to effect release of the goods. All necessary documents required to clear the goods through customs i.e. invoice, certificate of origin, import license, etc. must be available on request. Exports are the goods and services produced domestically but sold in other countries. On exportation of goods from Ireland to countries outside the European Union, the exporter or his /her agent must complete customs formalities. Electronic data transfer of Single Administrative Document (SAD) declarations makes the appropriate customs entry to Revenue’s Automated Entry Processing (AEP) system using the Direct Trader Input (DTI) facility. Using the AEP system, exporters or their agents may present completed SAD declarations to customs and pay export duty (if any) to effect release of the goods. All necessary documents required to clear the goods through customs i.e. invoices, export licenses, etc. must accompany the SAD declaration form.
Regulation No. 1889/2005 of the European Parliament and of the Council introduces controls on cash entering or leaving the Community. Beginning June 15, 2007, individuals entering or leaving the European Union and carrying cash of a value of €10,000 or more are obligated to make a declaration to the Customs authority of the Member State through which they arrive or depart. For the purposes of this Regulation, “cash” means: * currency (banknotes and coins that are in circulation as a medium of exchange) * bearer-negotiable instruments including monetary instruments in bearer form such as traveler’s checks, negotiable instruments (including checks, promissory notes and money orders) that are either in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery and incomplete instruments (including checks, promissory notes and money orders) signed, but with the payee’s name omitted
Individuals entering or leaving the Community via an Irish port or airport must present a completed declaration form to Customs. Customs may check the form and cash to ensure that the amount declared is correct. The individual making the declaration may request a stamped copy of the completed declaration. This prevents individuals from embezzling cash in and out of Ireland, which avoids fraud when it comes to conducting business with financial institutions such as Wells Fargo.

Gross domestic product (GDP) is the market value of all final goods and services produced in a country during a period of time, typically one year. According to the 2014 Index of Economic Freedom Report from Heritage.org, as of 2012, the GDP in
Ireland is $192.2 billion, $41,921 per capita. The unemployment rate is 14.7% as of 2014 and the labor force was 2.126 million as of 2011.
The Irish pound was the currency of Ireland until January 2002 when the country adopted the Euro as the national currency. Both decimal day and the Euro changeover led many in Irish society to believe that traders taking advantage of the confusion, exchange rates nonetheless, had improperly raised prices. In the case of the Euro, the government took special measures to prevent any unnecessary price changes, which ultimately proved ineffective. The period of changeover also took place during an economic boom in the country, and inflation was high. As the cost of living and prices rose, people were eager to blame it on the merchants taking advantage of changeover confusion. Most merchants, especially the larger chains, continues to show the prices in IEP under the EUR price for up to five years after the changeover. Therefore, people could easily see the price in old currency and check if prices had been improperly inflated.
Inflation rate is the percentage increase in the price level from one year to the next.
The inflation rate in Ireland as of 2014 is 1.9%. With prices are being improperly inflated in Ireland that would have a negative effect on Wells Fargo wanting to do business with Ireland.

The balance of payments is the record of a country’s trade with other countries in goods, services, and assets. Balance of trade is the difference between the value of the goods a country exports and the value of the goods a country imports. According to Census.gov, as of December 2013, the figures of the United States trade in goods with Ireland were: * Exports: $6,622.60 * Imports: $31,582.20 * Balance of trade: -$24,959.60

A tariff is a tax imposed by a government on imports. The European Union members have a low 1.1% average tariff rate. Ireland has few barriers to international trade and investment. Domestic and foreign firms generally receive equal treatment under a competitive and efficient investment regime. The structure of the banking sector has changed significantly through massive recapitalization and restructuring. Considerable consolidation has taken place among domestic lenders. There are no exchange controls restricting the movement of funds to or from Ireland.
From what I have learned about economics I believe that Wells Fargo would succeed in Ireland in the long run. Given the social and economic environment of Ireland as described earlier in this paper, I believe Ireland is an economically stable country in which any financial institution would successfully succeed in.

References
Exchangerate.com, Inc., The Currency Authority. (2014, April 23). Currency Info, Irish Pound. Retrieved from http://www.exchangerate.com/currency-information/irish-pound.html
Hubbard, R. Glenn, O’Brien, Anthony Patrick. (2013). Economics, p. 274, 616, 617, 984.
Info Please. (2014, April 23). World, countries, Ireland. Retrieved from http://www.infoplease.com/country/ireland.html
Kwintessential, The translation Company. (2014, April 23). Ireland – Language, Culture,
Customs and Etiquette. Retrieved from http://www.kwintessential.co.uk/resources/global
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Revenue, Irish Tax and Customs. (2014, April 23). Customs and Excise – Cash Controls-
CDPN22. Retrieved from http://www.revenue.ie/en/customs/leaflets/customs-excise-cash-controls.html
Russell, Brennan, and Keane. (2014). Executive Relocation Ireland. [PDF Document], p. 6.
Retrieved from http://www.rbk.ie/files/2012/20130724092501_RBK_ExecRelocation
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The Heritage Foundation, in Partnership with Wall Street Journal. (2014, April 23.) 2014 Index of Economic Freedom, Ireland. Retrieved from http://www.heritage.org/index
/country/ireland
United States Census Bureau. (2014, April 23). U.S. International Trade Data, Trade in
Goods with Ireland. Retrieved from http://www.census.gov/foreign-trade/balance/c4190.html
Wells Fargo. (2014, April 23). About Wells Fargo, since 1852. Retrieved from https://www.wellsfargo.com/about/history/adventure/since_1852
Wells Fargo. (2014, April 23). Global Banking Locations. Retrieved from https://www.wellsfargo.com/com/international/locations/trade-services
Wells Fargo. (2014, April 23). Wells Fargo International Locations. Retrieved from https://www.wellsfargo.com/com/international/locations/bank-international