Explain how European Union policy has impacted on the Irish economy. - Leaving Cert Geography - Question 9C - 2020

Foreign direct investment (FDI) has significantly boosted the Irish economy through various means.

1. Job Creation: FDI has led to the establishment of multinational companies in Ireland, significantly increasing employment opportunities in various sectors such as technology, pharmaceuticals, and finance. This job creation has reduced unemployment rates, contributing to economic stability.

2. Economic Growth: The influx of FDI has contributed to substantial economic growth. It has allowed Ireland to develop a strong export-oriented economy, with many firms using Ireland as a base to access European markets.

3. Technological Advancement: FDI has brought in advanced technologies and expertise. This technological transfer has improved productivity in local firms and enhanced the overall competitiveness of the Irish economy.

4. Increased Tax Revenue: The presence of multinational companies has also increased tax revenues for the Irish government. These revenues can then be reinvested into public services and infrastructure, further stimulating economic growth.

5. Infrastructure Development: The demand for facilities from multinational companies has led to improved infrastructure. Investments in transport, telecommunications, and utilities have enhanced the quality of life and business environment in Ireland.

6. Trade Balance Improvement: FDI has helped improve the trade balance. Increased exports from foreign companies have contributed to a more favorable trade position for Ireland.

7. Skilled Workforce Development: The need for skilled labor in foreign firms has encouraged educational institutions to tailor their programs to meet industry needs, leading to a more skilled workforce in the country.

8. Cultural Exchange: The presence of foreign firms facilitates cultural exchange, as they often bring diverse cultures into the local workforce, enriching the social fabric of Irish society.