Leaving Certificate Geography Economic Elective (Higher and Ordinary) The Impact of Globalisation on a Developed Economy - Ireland

1. Case Study:
The Impact of Globalisation on a Developed Economy…
Ireland

2. The Globalisation of the Irish Economy
• As a colony of the British Empire, Ireland gained new
trade links as part of the Empire’s worldwide trade
networks.
• With independence some trading partners were lost.
In addition, tax barriers were introduced for all
imports in the 1930s. These barriers prevented
Ireland’s trade with other countries.
• These trade barriers were reduced from the 1950s on
and Ireland became part of the global economy.

3. Impact of Globalisation on the Irish Economy
1. Change in Products
• The Irish government has promoted the
pharmaceutical and technology sectors and
service industries such as finance and
software services. This has been a big change
from traditional activities such as agriculture
and clothing.

4. Impact of Globalisation on the Irish Economy:
2. New Markets Developed
Before Ireland’s economy became so globalised it
traded mainly with the UK. Today our main
trading partners are the US, Asia and Europe.
Today globalisation is perceived as both an
opportunity and a threat for Ireland.
Globalisation provides the chance to sell goods and
services abroad.
However, if Ireland becomes uncompetitive in labour
costs, Irish-based industries will decline due to
competition from imports of cheaper goods and
services.

5. Impact of Globalisation on the Irish Economy:
3. Dependence on foreign-owned companies for our
exports and employment
• Ireland’s ability to export goods is largely dependent
on the US firms located here, e.g. Intel. 91% of Irish
exports in 2012 were produced by foreign-owned
companies.
• The Irish financial services sector has grown rapidly
since the 1980s. The sales of financial services to the
world is worth over €13.2 billion to the Irish
economy each year. Exports from the services sector
in Ireland are more focused on European markets.

6. Impact of Globalisation on the Irish Economy:
4. Increased dependence on other economies
• Any reduction in US investment into Ireland would
have a serious impact on the Irish economy. Similarly,
a global slowdown in the high-tech or financial
services sectors would also greatly affect Ireland,
since such a large amount of Irish trade is
concentrated in these sectors.

7. Impact of Globalisation on Irish Economy
5. Dependence on knowledge industries rather
than labour-intensive manufacturing
• Investment in Irish education is important to
Ireland’s future economic growth. Ireland
needs to focus on attracting businesses that
supply knowledge and ideas for companies
(e.g. film animation and pharmaceutical
development).