Economics · 6th Year · The Global Economy and International Trade · 3.º Período

Globalisation and Multinational Companies (MNCs)

Assessing the impact of globalisation and foreign direct investment (FDI) on the Irish economy and employment.

TL;DR:Globalisation and the role of Multinational Companies (MNCs) are defining features of the modern Irish economy. This topic explores the drivers of globalisation, such as improvements in technology and transport, and the specific factors that make Ireland an attractive destination for Foreign Direct Investment (FDI). Students evaluate the benefits of MNCs, including job creation and tax revenue, against the risks of 'footloose' capital.

• NCCA Curriculum Specifications
• Leaving Certificate Economics LO 4.5
• Leaving Certificate Economics LO 4.6

About This Topic

Globalisation and the role of Multinational Companies (MNCs) are defining features of the modern Irish economy. This topic explores the drivers of globalisation, such as improvements in technology and transport, and the specific factors that make Ireland an attractive destination for Foreign Direct Investment (FDI). Students evaluate the benefits of MNCs, including job creation and tax revenue, against the risks of 'footloose' capital.

This unit encourages students to look at the 'dual economy' in Ireland: the high-tech, export-oriented MNC sector versus the traditional domestic sector. They also consider the ethical and environmental implications of global supply chains. This is a highly relevant topic for students as they consider their future careers in a globalized labor market.

This topic comes alive when students can physically model the patterns of global supply chains through collaborative mapping.

Key Questions

1. What attracts MNCs to set up operations in Ireland?
2. How does globalisation impact local Irish businesses?
3. What are the economic vulnerabilities associated with high FDI?

Watch Out for These Misconceptions

Common Misconception

Globalisation only benefits rich countries.

What to Teach Instead

While controversial, globalisation has lifted millions out of poverty in developing nations through trade. A collaborative investigation into 'Fair Trade' versus 'Free Trade' helps students see the nuanced impacts on different global regions.

Common Misconception

MNCs only come to Ireland for the low tax rate.

What to Teach Instead

While tax is a factor, MNCs also value our educated workforce, EU membership, and English-speaking environment. A 'ranking' activity where students prioritize different 'pull factors' for a tech company helps clarify this.

Active Learning Ideas

Gallery Walk

The MNC Footprint in Ireland

Students research different MNCs based in Ireland (e.g., Google, Pfizer, Intel). They create posters showing their impact on local employment, infrastructure, and the 'spin-off' benefits for local Irish businesses.

45 min·Whole Class

Formal Debate

The FDI Dependency

A debate on the motion: 'Ireland is too dependent on Foreign Direct Investment.' Students must use data on tax receipts and employment to argue for or against the current economic model.

50 min·Whole Class

Think-Pair-Share

The Global Product

Students look at the labels on their clothes or phones and trace the 'journey' of the product. They discuss in pairs how many countries were involved in making it and why companies choose different locations for different tasks.

20 min·Pairs

Frequently Asked Questions

What attracts MNCs to set up operations in Ireland?

Key attractions include the low corporate tax rate, access to the EU Single Market, a highly educated and young workforce, and the fact that Ireland is the only English-speaking country in the Eurozone.

How does globalisation impact local Irish businesses?

Globalisation provides local firms with access to larger markets and cheaper raw materials. However, it also increases competition from abroad, which can put pressure on traditional Irish industries that cannot compete on scale.

What are the economic vulnerabilities associated with high FDI?

The main risk is 'shocks' to the global economy or changes in US tax law that might cause MNCs to leave. This 'over-concentration' means a downturn in one sector (like tech) can have a disproportionate impact on Ireland's national budget.

How can active learning help students understand globalisation?

Active learning, such as a 'global supply chain' mapping exercise, helps students visualize how interconnected the world is. By tracing a single product through multiple countries, they grasp the complexity of modern trade and the strategic reasons why companies operate across borders, making the concept of globalisation tangible.