Bus Ireland Final

Pragmatic nationalism view on FDI

- Benefits: brings capital, skills, technology, jobs - Costs: profits go to the home country - Countries should increase benefits and reduce cost

Why Acquisitions?

- Quicker and easier to execute - Existing firms have valuable strategic assets (loyal customers and trademarks/patents) - Belief that transferring capital, technology, or management skills will increase efficiency

What are the crucial advantages that Shannon had for building an Airport?

- Located in a marsh where seaplanes can land - Perfect for refueling for flights between the U.K and the U.S.

Radical view on FDI

- MNE's are instruments of imperialist domination - FDI and MNE keeps developing nations dependent on advanced capitalist nations for investment and jobs

European Parliament (EP)

- Main Powers: Advisory and Supervisory of legislation - It is the only directly elected institution of the EU - It consists of more than 750 delegates of member states elected by direct universal suffrage - 5-year term - The EP's President is elected from among the Members of the European Parliament (MEPs) Location: Brussels and Strasbourg

What were the EU's founding objectives?

- Maintain peace among nations - Create a common European culture of Solidarity - Political stability through economic cooperation

The Council of Ministers (Council of EU)

- One representative from each member state appointed by their national government - The presidency rotates every six months in alphabetical order of the member states - Decisions prepared by the Committee of Permanent Representatives of the Member States - Location: Brussels and Luxembourg

Treaty of Nice (2001)

- Preparation of the path for an enlarged and smooth functioning European business environment - Increase in the EU foreign policy's efficiency and credibility for foreign and local investors

What was the threat that Shannon faced?

The improvement in tech meant planes didn't need to refuel - Shannon responded by offering a "Duty-Free" industrial zone that brought attention from foreign companies

In the article "Culture Eats Strategy for Breakfast," Bock identifies three pillars to Google's organizational culture. They are: 1. Organization Mission 2. Business Model 3. Transparency

A. True B. False Answer: B

Tolerance is the least important of the 3Ts because people base decisions about where to live and work almost entirely on the level of taxes?

A. True B. False Answer: B

binding legislation

Regulation: - 'Binding in their entity' and addressed to everyone - Immediate effect in all the member states Directive: - Binding in terms of outcomes - Entire discretion about form and method of adaptation Decision: - Binding ruling on a particular issue

How many counties are the GAA in?

32

How many regions are there in Rugby?

4

Role of the CEC

- Collective body of shared responsibility for actions and policies across sectors - The initiation, formulation, and coordination of Community policy - Executing the budget of the EU - Regulator of the European Market - Negotiator in relations with international organizations as well as with non-member states

What is the EP's role in decision-making process?

- Consultation: Approves, Rejects, or Suggests Amendments - In Assent: Provides assent by absolute majority to proposed legislation before the Council can adopt this - In Co-Decision: has equal and shared powers with the Council of Ministers

EU common currency

- Creation of a central European bank (1998) - Adoption of a common currency, the Euro, significantly contribute to its singular nature in the world (2002) - The EU operates as one economic unit for international trade

European Economic Community (1958)

- Creation of a free trade area evolving into a customs unions that removed internal tariffs in goods and harmonized external tariffs - Establishment of the prohibition of monopolies - Launch of the Common Agricultural Policy (CAP)

Reasons for Growth of FDI

- Fear of protectionist measures such as trade measures - Political and economic change in developing countries - Globalization of the world economy

Strengths of FDI

- Firm has valuable knowhow that cannot be adequately protected - Firm needs tight control over a foreign entity that licensing cannot ensure - Firm skills and knowhow are not amenable to licensing - Location-specific advantages

The Motherhood Penalty

- For those under the age of 35, the pay gap between mothers and non-mothers is larger than the pay gap between men and women - Evaluators rated mothers as less competent and committed than non-mothers - Fathers are advantaged over non-fathers: commitment, starting salary - Mothers were discriminated against when hiring while Fathers were not

Country Analysis

- Government (Political/Legal) - Cultural (Sociological) - Financial (Economic) - Infrastructure (Technological)

Free market view on FDI

- International production should be distributed among countries according to competitive advantage - Countries should specialize

Limitations of Licensing

- Risk of giving away valuable knowledge to a competitor - No tight control over in-country production, marketing, or strategy - Capabilities often amenable to licensing

Treaty on European Union (1993)

- The EU becomes one streamlined market thanks to the single currency, the euro - Significant change for the competitiveness of European manufacturing , primary and tertiary sectors - Disappearance of transaction costs between the members of the euro-zone

Social Conditions

- Values - Culture - Institutionalized Norms - Social Change

political ideology and FDI

1) Radical View 2) Free Market View 3) Pragmatic Nationalism

Host Country Costs of FDI

1. Adverse Effects on Competition: - MNEs may have greater power - Risk of monopoly 2. Employment Effects: - Acquisition may lead to job loss 3. Adverse Effects on the Balance of Payments - Outflow of earnings 4. National Sovereignty and Autonomy - Loss of economic independence

Host Country Policies

1. Encouraging inward FDI: - Incentives: Tax concessions 2. Restricting inward FDI: - Controls over FDI; - Ownership restraints(exclusion from sectors) - Performance requirements

The EU Commissioner calculated that in 2014, for every million euros of profit made in Europe, Apple paid approximately (but slightly less) than how many euros in tax?

50

Host Country Benefits of FDI

1. Resource Transfer Effects: Tech, R&D, Management skills 2. Employment Effects: Direct: MNE employs citizens Indirect: Jobs created due to local supply and investment 3. Balance-of-Payments Effects - FDI can be a stimulus for imports 4. Effect on Competition and Economic Growth

How was the threat of technological advancement overcome?

A. An industrial free zone was created at Shannon Airport B. They runway was extended to allow for larger aircraft to land C. An aircraft manufacturing hub was established at Shannon Airport D. The threat wasn't overcome and Shannon Airport closed Answer: A

In Lauren Rivera's study of Hiring as Cultural Matching, one of the people she interviewed stated that intelligence was not necessarily what was important to them when considering a future colleague. Rather, they stated that the main factor was as follows: "I need to be comfortable working everyday with you, then getting stuck in an airport with you, and then going for a beer after." This is an example of which of the following:

A. Cultural Similarity to Self B. Fitting in as Formal Criterion C. Looking Glass Merit D. Cultural Similarity to Firm Answer: B

At Google, they speak about cultural change in the following terms: "We enjoy a constant paranoia about losing the culture and a constant creeping sense of dissatisfaction with the current culture" Which of the following best describes how the statement above relates to Lauren Rivera's ideas about cultural matching as it affects firm performance?

A. Cultural matching is both beneficial and detrimental to a firm because it can help create strong teams bonds but simultaneously it can stymie innovation. B. Cultural matching in hiring does not affect firm performance. C. Cultural matching is only detrimental to a firm because it can lead to group-think and stymie innovation. D. Cultural matching is only beneficial to a firm because it helps teaming bonding and facilitates teamwork. Answer: A

The Constitution of Ireland recognizes that the EU is the only body that can pass laws regarding:

A. Customs union B. Competition rules in the single market C. Monetary policy in the Eurozone D. International trade agreements ́Marine plants and animals

The Easter Rising of 1916 is an important day in Ireland's political history because of which of the following:

A. It galvanized support among the Irish public for pursuing Ireland's independence from Britain. B. It resulted in the creation of the Irish Free State, which would become The Republic of Ireland. C. It resulted in Home Rule for Ireland. D. It led to Ireland's entry into World War I Answer: A

Technological advancement threatened the future of Shannon Airport because:

A. Modern airplanes no longer needed to refuel in Shannon Airport B. Airline parts were produced faster and cheaper in the United States C. Modern airplanes were too big to land on the runway at Shannon Airport Answer: A

Florida highlights a study carried out by Gallup (2011), which found that three main qualities attach people to a place. They are:

A. Social offerings (venues; meeting places); Openness (how welcoming a place is); Aesthetics (physical beauty and green spaces). B. Low taxes; Minimal regulation; Generous subsidies C. Social offerings (venues; meeting places); Openness (how welcoming a place is); Low taxes D. Minimal regulation; Openness (how welcoming a place is); Aesthetics (physical beauty and green spaces). Answer: A

In the paper, Hiring as Cultural Matching by Lauren Rivera, she asks the research question: "Do cultural similarities between employers and job candidates matter for employers' hiring decisions?" What data does she use to respond to this question?

A. Survey Data and Interviews B. Interviews and Participant Observation C. Participant Observation and Survey Data D. Survey Data and Archival Data Answer: B

The War of Independence in Ireland ended with the signing of a treaty in 1921. This treaty polarized the people of Ireland, ultimately leading to a Civil War. The most controversial aspect of the treaty was the requirement that Irish parliament members swear allegiance to the British Crown. The most long-lasting aspect was partition. Which of the following best describes partition?

A. The division of the island of Ireland into two parts. The Irish Free State with 26 counties and Northern Ireland with 6 counties. B. The division of the island of Ireland into two parts. The Irish Free State with 6 counties and Northern Ireland with 26 counties. C. The division of the island of Ireland into four provinces. D. The division of the island of Ireland into Gaelic speaking and English speaking groups. Answer: A

"The Troubles" is the term used to describe Ireland's economic turndown during the 1960s and 1970s.

A. True B. False Answer: B

Florida points out that according to research (Gabe 2011), college graduates working in the same job as non-college graduates earn about 50% more, except in creative class jobs where both graduates and non-graduates earn equal wages.

A. True B. False Answer: B

In 2020, Ireland's corporate tax rate of 12.5% was over 8% lower than the EU average corporate tax rate.

A. True B. False Answer: B

Select the option, from those listed below, that most accurately completes the following sentence: In 2016, the European General Court of the EU _________________ the ruling by the EU Commissioner for Competition to require Ireland to recover 13.1billion euros in back taxes plus 1.2billion euros in interest from Apple.

A. challenged B. sidestepped C. held up D. annulled Answer: D

acquisition

Acquiring or merging with an existing firm in a foreign country

Breaching

Actions that do not follow the basic rules of social life and therefore reveal hidden background assumptions

Why does the European Parliament have two locations?

After World War 2 in order to deescalate tensions between France and Germany (Two major forces in both World Wars) the EP opened a location in Strasbourg which is between France and Germany and hopefully prevent a 3rd world war

command economy

An economic system in which the government controls a country's economy.

mixed economy

An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.

Commissioners

Renewable term of 4 years: 1 commissioner per country - Nominated by Governments of the Member States - Elect the president by a common agreement

Gender Development Index (GDI)

Compares the level of development of women with that of both sexes.

How does EP seating order work?

Countries are grouped by political group affiliation

market economy

Economic decisions are made by individuals or the open market.

Cultural Matching

Employers seek candidates who are culturally similar to themselves (Culture eats strategy for breakfast)

European Commission (External Face of the EU)

Ensures the proper functioning and development of the common market - Proposes legislation - Manages and implements EU policies and the budget - Enforces European law, together with the European Court of Justice - Represents the European Union internationally (External Face)

Greenfield Investment

Establishing a new operation in a foreign country

Ireland acceded to (joined) the European Union (EU) in 1973. At the time, the EU was known as the:

European Communities

Flow of FDI

FDI undertaken over a specific period

True or false FDI according to the U.S. Dept of Commerce is at least 15% ownership?

False - It is 10%

True or False the IDA is an inward investment promotion agency that is a commercial part of the government focused on promoting FDI?

False! It is non-commercial and it is Semi-state

True or false Rugby is traditionally known as a blue collar sport and has had recent struggles with reaching a higher income demographic?

False, rugby is known for being more of a middle to upper class sport

Positive integration (EU)

Forming a common market with appropriate institutions governing the group and a policy framework

Dublin is a UNESCO cultural heritage site for which art form?

Literature

Taoiseach of Ireland

Prime minister, the head of the government

President of the EC

Sets the broad policy lines and directs the allocation and reorganization of portfolios - Elected by a common agreement from the Commissioners

Social change

The alteration of cultures and societies over time

Gender

The behavior and attitudes (Norms) that a society considers proper for its males and females

Negative Integration (EU)

The removal of trade restrictions

True or False as EU citizens Irish people can live and work freely in any member state, and that means more opportunities and job choices for Irish workers?

True

True or False negotiations depend on relative bargaining power?

True

Foreign Direct Investment (FDI)

When a firm invests directly in facilities to produce or market a good or service in a foreign country - U.S Dept of Commerce Definition: FDI occurs whenever a U.S citizen, organization, or affiliated group takes an interest of 10 percent ore more in a foreign business

Forms of FDI

greenfield investment, acquisition

Good Friday Peace Agreement

a 1998 agreement between Catholics and Protestants in Northern Ireland to share political power

Gender Inequality Index (GII)

compares the levels of indicators for females to those of males within a country.

Individualism

giving priority to one's own goals over group goals and defining one's identity in terms of personal attributes rather than group identifications

Collectivism

giving priority to the goals of one's group (often one's extended family or work group) and defining one's identity accordingly

Licensing

granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit that the foreign entity sells

Exporting

producing goods at home and then shipping them to the receiving country for sale

The Three T's

technology, talent, tolerance

cultural lag

the fact that some cultural elements change more quickly than others, disrupting a cultural system

Stock of FDI

the total accumulated value of foreign-owned assets at a given time

Limitations of Exporting

transportation costs and trade barriers