Feb 15 linc

Feb 15 linc - When utilizing an ownership test, the...

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James Andreoli LinC Dublin Expansion of Firms into Ireland For United States based companies, an expansion into Ireland is probably a good idea, as this country is considered the gateway to Europe. Based on the Better off test the following factors would influence ones decision. With cheaper labor, Capitol Available, and numerous other benefits of business in Europe, an expansion would be beneficial. Cost differences in Ireland would be significant as labor is readily available. By operating within the EU, an expansion into Ireland would truly provide a gateway into Europe and thus permit the firms that expand to open new markets in the EU. With some Universities, the Human Capital in Ireland would be beneficial as well.
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Unformatted text preview: When utilizing an ownership test, the following analysis is key. When owning in Ireland, a firm could potentially have a huge market into Europe, and therefore a firm operating in Ireland would be a good idea. However, a Chinese firm for example, would probably not want to expand into Ireland. These reasons lie because the fact that cheaper labor and better talent is available at their home location. Thus, a firm from China would not want to expand to Ireland because the costs would be greater than the benefits. And ownership would probably not open any new markets not previously available. Thus a firm from China probably would not want to expand into Ireland....
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This note was uploaded on 04/24/2008 for the course BUAD 100x taught by Professor Gilligan during the Spring '08 term at USC.

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