...to invest, you need capital which at the moment is not available in this country. During the boom years, the banks were all too happy to lend money to people who don’t have any stable jobs and the regulators had allowed the bank to lend money, the regulators did not do their jobs properly because they did not analysed peoples assets and the stability of their jobs. These people who are lending huge sum of money were spending those money on luxury items like huge mortgages and loans for cars/holidays etc. The banks did not foresee the recession on the horizon and were more than happy to approve loans as they were gaining money themselves through interest. When the property bubble burst, investors started to take back their investments on Irish banks, this is because they felt that...
Words: 2394 - Pages: 10
...Direct Investment (FDI) Policy As a Stimulator to Irish Economy Had Several Drawbacks Summary While Ireland has been extremely successful at attracting inward investment, facts and figures suggest that too much focus has been placed on foreign direct investment (FDI), to the detriment of the domestic economy. Since the influx of foreign companies in the 1960s FDI has continued to make important contributions to the Irish economy, however Ireland’s over reliance on FDI as a stimulator of economic growth has not been without its drawbacks, which will be especially severe in the coming future. The policy led to a yawning gap between Ireland’s GDP and GNP, lead to a low investment share of Irish national income, increased transfer pricing and instigated high dependence on foreign firms and economies. Background Ireland is one of the most successful countries in the European Union (EU) for attracting FDI and the “Celtic Tiger” era of the 1990’s was largely due to these investments and increased inflows to the country. The country was able to attract enormous FDI due to a low corporation tax rate, access to a skilled low wage multilingual labour availability, geographical benefits, fiscal and political stability, ease of doing business and access to European Union (EU) markets. Instability from overreliance on multinationals * High dependency of Irish manufacturing on foreign MNCs is the major source of instability for the economy. * The danger is that external circumstances...
Words: 1025 - Pages: 5
...growth due to the circumstances related to the Irish economy and the effect of the low corporate tax rate in increasing the GDP. So according to this article the GDP of Ireland had increased by 4.8pc and the Irish economy as a whole grew by 6.7pc. Many jobs have been added and the unemployment rate has decreased. The Irish government also had a surplus from taxes for the first 11 months of 2015. However this increase is not a full reflection of what is happening to the Irish economy. As the article explains usually there is a slight difference between a countries GDP and its GNP but in Ireland this difference is quiet large, there was about a 15pc difference the GDP had outweighed the GNP. The article explains this difference in that Ireland has a lot of foreign companies that operate on its soil due to the low corporate tax rate it has and this is the reflection of the GDP being very high. However it goes on to point out that the GNP may not be a better indicator due to various issues. Some of these issues include some UK companies registering as Irish to benefit from the low tax rate. Other more important is tax inversion, when a company gets taken over by an Irish company so that it can benefit from the tax rate and is now registered as an Irish company which is somehow legal. Now the profits of these companies who are to be redistributed to the shareholders appear as the profits of the Irish economy and is represented on the Irish GNP. This all drives the question is to how...
Words: 460 - Pages: 2
...about €5000 a head. Fast forward four years and Ireland is shut out of sovereign debt markets and in an EUIMF adjustment programme. Its debt-GDP ratio has soared over 100% and the sovereign wealth fund is effectively gone. In this short paper, I provide a brief review of how this rapid change came about and discuss potential future developments in relation to Ireland’s sovereign debt situation. 2. The Rise and Fall of the Celtic Tiger It is now well known that Ireland’s famed “Celtic Tiger” ended with the collapse of a housing bubble and a banking crisis. Many have thus been tempted to describe the Irish boom as largely built on an unstable credit splurge. However, this would underestimate the true progress made by the Irish economy during the two decades prior to 2007. The Birth of the Tiger Before the “Celtic Tiger” became a well-known phrase during the 1990s, the Irish...
Words: 5442 - Pages: 22
...“Analyse the current government’s argument that the nature of jobs created within an economy dictate the degree of success rather than the amount of jobs”. 1. Introduction The Irish economy has changed greatly in the last Forty years. An educated workforce and Urbanisation of our towns and cities has seen an industry shift. There are a number of important factors that allowed this to happen so quickly. Ireland’s membership of alliances such as the E.U. and the O.E.C.D and the directives that were incurred as a result of these memberships. More recently in the Nineties the economy had enjoyed a period of prosperity which was generally accredited to the provision of subsidies to knowledge based industries such as I.T., Financial Sectors and Research & Development. This coupled with a desirable location and a new highly educated workforce. As stated in the department of finances report in 2011 the economy experienced imbalances due to bad auditing systems in the banking and building sectors. “The Irish economy was transformed over the past two decades. Per capita income rose strongly, converging towards and subsequently overtaking European average levels. However, from the early part of the last decade, imbalances began to emerge which made the economy increasingly vulnerable. A major property bubble began to unwind from 2007, and the fall-out from this was exacerbated by the major deterioration in the external environment...
Words: 3141 - Pages: 13
...a surge in immigration and a rise in the population; one of the fastest growing populations in the EU. This was a time of boom for Ireland, caused mainly by the buoyancy of the global economy and the expansion of the US economy. This was prevalent with the amount of foreign direct investment that was coming from the US. A major period of economic expansion caused an increase in the construction industry. At the start of 2008, the construction industry accounted for 25% of Irish GDP and 20% of Irish jobs. At this time, the Irish government was in a false budgetary position where it ran significant exchequer surpluses. As a result, the then Fianna Fail government, which was in power at the time began a process of cutting taxes, increasing tax incentives for developers to build homes, increased the size of the public sector including increasing the public sector wage through a benchmarking processes that was deeply flawed and even encouraged people to save through the SSIA scheme which for every Euro saved, the government would contribute 25% to this fund. In addition, the government invested heavily in the capital spending program which led to many projects been delayed and saw excessive over runs in terms of cost. The Irish banking sector at this time was lending money cheaply to the Irish people, thanks in large to cheap credit facilities...
Words: 2659 - Pages: 11
...Insurance, Risk and Market Associations 2010 Contents Introduction 3 Insurance 3 General Introduction 3 The principles of Insurance: 4 Task 1 The Irish Insurance Federation (IIF) 4 About the Irish Insurance Industry (Market) 5 The Chartered Insurance Institute (CII) and Irish Insurance Federation (IIF) 6 The Dublin International Financial Services Centre (DIFSC) 7 The Irish Brokers Association (IBA) 8 The Financial Regulator 8 Task 2 Graphs 10 Shop lifting 10 Burglary 11 Storm and High winds 11 Act of God 12 Flood 12 Fire 13 Suggested changes to reduce the theft risk 14 Conclusion 14 Bibliography 15 Introduction Insurance Insurance plays a very important role in today’s economy. Insurance is designed to protect the financial well-being of every individual and business. Without insurance we couldn’t drive cars, own our homes, run our business-because of the possible risks. General Introduction Insurance is a risk transfer mechanism which in return for a fee (‘premium’) will insure individuals or business against the risk specified. Aim of insurance is to compensate (‘indemnify’) the loss individuals or business may suffer through the occurrence of an unexpected incident, the loss that either may or may not happen. ‘Modern insurance low’ author John Birds, wrote that the beginning of insurance was developed by a commercial world in 14th century. The origins of the modern insurance contract was found...
Words: 2168 - Pages: 9
...books of Islamic institutions. In the last decade Islamic finance started to move into Europe and the USA due to the lack of investment opportunities in the Middle East and the need for its boost to some local economies. In this regard i will try to find out about the emergence of Islamic finance into the Irish financial market and its prospects and barriers. What are the financial benefits for both side and the Irish economy in particular? The trends and prospects for Islamic finance? The barriers to entry into the Irish financial system? Literature Review:- The main topic to be examined is Islamic finance entry to the Irish financial market, particularly the barriers it might face and the prospects and trends. Since Islamic finance and Sharia compliant products are new to Irish market, it is hard to find previous researches about this issue. However, there are quite number of articles focusing on the matter, often written by economists, journalist and concerned people, and there are some reports issued by the like of department of finance, European central bank (ECB) and the Irish Islamic chamber of commerce. Some of the questions that will be addressed within the dissertation; Why Ireland as a hub for Islamic finance? Will it help in boosting and rebuilding the Irish financial sector? What is the government providing to capitalise on the matter, in terms of legislations, regulations and taxation treatment? How well Islamic finance doing for Ireland, internationally? Another...
Words: 478 - Pages: 2
...ancient monuments such as the Beaghmore Stones or enjoy themselves playing golf, going fishing or watching horse racing Ireland offers anything a person is looking for in a vacation. (History & Heritage, 2008) Although its history and landscape it interesting and beautiful, Ireland is also branded for its troubled and violent history which includes diseases, starvation, wars and terrorism. Not many people are acquainted with the fact that after the period of violence and struggle, around 1990, crucial changes in the government were made and strategies to revive the economy were developed in order to establish an economical and financial stable country. The Industrial Development Agency played a major role in improving the “country’s economy, attracting new investors from abroad and was also responsible for launching an international marketing campaign called ‘The Irish Mind’” (Dorgan, 2005). Within a few years the economy started...
Words: 4609 - Pages: 19
...Taylor Financial Crisis in the European Union: The Cases of Greece and Ireland Sara Frances Taylor ABSTRACT The 2008 eurozone financial crisis has only worsened as of summer 2011 raising questions about the economic future of the eurozone and sending shock waves through economies around the world. Greece was the first state to receive a bailout from the European Union and the International Monetary Fund, surprisingly followed only six months later by Ireland. The goal of this thesis is to analyze the challenges posed to smaller, weaker economies within the eurozone, specifically Greece and Ireland, since the recent eurozone financial crisis. This study is based on the experiences of both Greece and Ireland as very different members of the single currency. How and why did these states meet the criteria for euro convergence? To what extent was there support for the euro in both countries in the past? To what extent is there support today after the near collapse of both economies and the rescue packages brought about by the EU? As a result of the recent financial crisis, Greece and Ireland are facing difficulties with the terms of European economic and monetary union. Since these smaller economies are, among other reasons, unable to devalue the currency in order to regain economic competitiveness as members of the single currency, they are...
Words: 30568 - Pages: 123
...substances such as alcohol. State sponsored bodies operate rail and road transport, electricity, and some television and radio stations. The United Nations rated Ireland as the fourth best country in which to live. Ireland is the second wealthiest nation in the world with more than 30,000 millionaires in residence. Irish workers enjoy low taxes on wages. Irish citizens are offered a rebate for eco-friendly cars. The Irish government offers a free education and often pays students to take FAS (Foras Aiseanna Saothair) classes from the National Training and Employment Authority. The Average cost of a 4 year degree in the United States in $26,600.00. Irish citizens enjoy a free prescription drug plan. In the Irish National Health System private medical insurance costs per year, what the average American pays per month. The Irish Economy is not without its challenges. The average house in Ireland costs 350,000 pounds. That is about $519,000 in American dollars. Irish grocery prices are amongst the highest in Europe. Nine percent of the Irish population is classified as consistently poor, and one of five children leave school with inadequate literacy. Irish hospitals have a myriad of problems, including long waiting lists. As many as 29,000 people could be on waiting...
Words: 387 - Pages: 2
...Ireland consists of twenty-six counties and is located on the island of Ireland, along with Northern Ireland. Ireland is a parliamentary democracy, made up of three branches of government: the executive branch, the legislative branch and the judicial branch. The executive branch consists of the President, who is mostly there for ceremonial purposes, the Prime Minister, who is the head of the government, and the Deputy Prime Minister. The legislative branch consists of the House of Representatives and the Senate and the Judicial Branch consists of the Chief Justice and seven other judges. This paper goes over a brief look into the Republic of Ireland’s history, economy, their culture, and their business culture. In regards to their business culture, it offers advice into how to appropriately conduct business with Irish men and women. Country Analysis of the Republic of Ireland History Located to the west of Great Britain, sits the island of Ireland. The island is about 32,000 sq. mi. and is comprised of the Republic of Ireland and Northern Ireland, which is part of the United Kingdom (Holwell, 2001, para.2). The Republic of Ireland, which “occupies almost 85% of the total land-mass,” consists of twenty-six counties (Holwell, 2001, para. 2). The whole island, including both the Republic and Northern Ireland, began under the rule of the English as far back as 1171, when the king of England, King Henry II, declared himself king of Ireland (Gall & Hobby, 2009, p. 234). Following...
Words: 2888 - Pages: 12
...expansion. This expansion can be divided into two distinct phases, the export driven growth of the early to late 1990’s - ‘the true ‘Celtic Tiger’ period” (Honahan. P, 2010) - and the major asset bubble in commercial and residential property from 2000 to 2007. The 1990’s saw a dramatic expansion in Ireland’s economy. A large increase in workforce participation due to demographic changes, increased productivity and a huge influx of foreign direct investment combined with other factors resulted in GNI per-capita doubling in less than a decade from 1990 (World Bank, Databank) . These factors formed the basis for the ensuing housing boom. As employment increased, so did incomes and immigration which created increased demand for housing stock. The steady expansion in employment, standards of living and incomes (due largely to social partnership agreements, such as benchmarking) gave rise to an extremely optimistic outlook for the future which served further to drive spending and thus economic growth. The introduction in 2002 bringing greater financial integration and increased access to wholesale money markets coupled with easy monetary conditions in the euro zone gave Irish banks unprecedented access to cheap money. In...
Words: 2462 - Pages: 10
...common ancestral ties. Emigration has been a foundation of the U.S.-Irish relationship. Besides consistent dialogue on economic and political issues, the United States and the Irish Governments have official exchanges in areas such as education and medical research. With Ireland's membership in the European Union, discussions of EU trade and economic policies as well as other aspects of EU policy have also become key elements in the U.S.-Irish relationship. This long-term relationship, some cultural similarities and a strong educated workforce makes Ireland a good place to go international with a U.S. based business. Ireland Ireland is a nation emerging as a great place for the United States to conduct business. The relationship of the United States and Ireland are deeply based on shared values and common ancestral ties. These ties help breakdown communication issues that could occur in other dissimilar countries when trying to negotiate business. In addition to shared values, these two countries have similar cultures, as well as similar needs and wants in relation to consumer purchasing history, which makes the exchange of business easier, more lucrative and less risky. Economic Overview Ireland is a small, modern, trade-dependent economy, which experienced strong growth until the world economic downturn in 2008. Over the last few years, Ireland has been positioning itself for growth as the world economy improves. Agriculture, once the most important sector, has mostly...
Words: 3382 - Pages: 14
...U52026 International Labour Markets ------------------------------------------------- ------------------------------------------------- FIRST REPORT – 2013 ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Submission 27/03/2013 Contents Page: Front Cover………………………………………………………….Page 1 Contents Page………………………………………………………Page 2 Questions...…………………………………………………………Page 3 Part One…………………………………………………………….Pages 4-9 Part Two…………………………………………………………….Pages 10-15 Bibliography……………………………………………………….Pages 16-21 Questions Country Case Study You are required to write a 2000 word report which provides a critical assessment of the labour market of a particular country. You will be allocated the country in the seminar in week 1. If you have not attended this seminar, then you need to consult the module leader to obtain the country you will cover. Part 1 of the report (worth 40% of the marks) requires you to provide a statistical profile of your allocated country’s labour market and present an overview of the most important trends and developments in this country’s labour market over the past decade. Part 2 of the report (worth 60% of the marks) requires you to provide a critical review of the particular situation in your country of NEETs – young people not in employment, education or training. Specifically, using appropriate...
Words: 3641 - Pages: 15
