Ireland – a model of business success in the global economy? CIEE International Faculty Development Seminar Usha Ramanujam, Instructor, PCC, Business.

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Presentation transcript:

Ireland – a model of business success in the global economy? CIEE International Faculty Development Seminar Usha Ramanujam, Instructor, PCC, Business Administration Global Economy – Celtic Tiger VedVyas Shanbhogue, Intel Corporation, Portland, OR Intel Corporation in Ireland Cynthia McBurney, Owner, Kathleens of Dublin, Portland, OR Imports from Ireland Monica Sharma, PCC Alumna & Accountant, Ike Corporation, Beaverton, OR How does PCC education help in an import/export company?

Global Economy: The Celtic Tiger By Usha Ramanujam

Agenda About CIEE Some background on Ireland Surge of the Celtic Tiger Current challenges Summary

About CIEE Council on International Educational Exchange International Faculty Development Seminars (IFDS) –Faculty and Administrators are selected by PCC International Education Goals –Promote educational experiences abroad –Lectures –Tours

To Ireland..

Monday, July 2: First and Second Lectures

All Dublin City University (DCU) DCU was established in acre campus, almost 10,000 students Has a large study abroad program PSU students participate frequently

Historical Background 1948 Ireland (The Republic) created American born Eamon De Valera was the first President

Historical Background 1948 Ireland (The Republic) created American born Eamon De Valera was the first President Northern Ireland remained part of UK

The Republic & Northern Ireland

Historical Background 1948 Ireland (The Republic) created American born Eamon De Valera was the first President Northern Ireland remained part of UK 1973 Ireland joined EU Was the poorest member

Historical Background 1948 Ireland (The Republic) created American born Eamon De Valera was the first President Northern Ireland remained part of UK 1973 Ireland joined EU Was the poorest member 1996 Celtic Tiger growth begins

Wednesday, July 4: The Fourth, Fifth, and Sixth Lectures

“The Devil is in the Detail: The Underbelly of the Celtic Tiger” by Dr. Peader Kirby

The surge of the Celtic Tiger YearUnemployment Rate % %

The surge of the Celtic Tiger YearUnemployment Rate % % 10.7% annual growth between 1994 to 2000

What attracted Multinationals to Ireland? Foreign Development Investment (FDI) Corporate tax breaks English speaking work force Low wages Availability of EU funds to create innovative social partnerships

Additional factors boosting the economy Women joined the workforce Higher levels of immigration to Ireland Creation of jobs in high tech sector Return of the Irish Americans

Slowing down…..since 2002 Increase in minimum wages (€8.75) Lack of indigenous commitment to research and development –High Tech companies only have assembly line jobs Disintegrating educational system Rising interest rates and growth in private debt Disparity in wealth Decline in agriculture and production industries

The current growth is in.. Civil Service Construction –44% increase –Microsoft 800 jobs to construct datacenter Less than 30 to operate!

The current growth is in.. Consumer spending

Thursday, July 5: Trip to Belfast, Northern Ireland

Religious differences Shankill Road Mural

Loyalists vs. Nationalists

Falls Road Mural

Northern Ireland is still isolated

Summary What has worked for the Irish economy? –Being part of EU –Tourism and strong Euro What can sustain the Celtic Tiger? –Develop indigenous technologies –Reduce religious/political conflicts Impact of International PCC –International Financial Reporting Standards introduced in Principles of Accounting II (BA 212)