International Business Environment in Ireland Case Study - 1

International Business Environment in Ireland - Case Study Example Within the combination of various factors that influence development, the government of Ireland embraces peace and socio-cultural integration so that the country is able to recognize business partners as part of their economic development stakeholders hence handling business partners with the diligent they require. Cut in government spending is also a factor which boosted the performance of the economy of Ireland. Tax reduction was meant to reduce the cost of investment and attract foreign investors in the country. That is why Microsoft was attracted to invest in information technology business in Ireland which generated a lot of economic activities and contributed positively towards the gross domestic product. With control over the inflation, the country is able to gain from Foreign Direct Investment (FDI) increasing the number of the business transaction between traders and intergovernmental organization to the benefit of the country. However, with the peaceful transition in government, the economic state of the country has withstood the tough global economic challenges that face many countries in the global market resulting into heavy losses in business and trade as a whole (Gordon Bigelow, 2003, p. 45). The overall ability of a country to attract foreign investment also depends on membership of an economic trading block. In case of Ireland membership of European economic commission not only provided the market to the country but also enabled it to diversify its export products. Initially, Ireland depended on the markets of the united kingdom alone which relied mostly on agricultural products only. Through membership of the economic block Ireland was able to open up to competition for its products as well (Philip, 2000, p. 17).