Strategic Development of Multinational Subsidiaries in Ireland

Abstract

Ireland's economy is highly dependent on the activities of multinational subsidiaries. OECD (1991) data shows that over 45 per cent of manufacturing employment and almost two-thirds of manufacturing output is attributable to foreign-owned firms. These subsidiaries have been set up in Ireland in three basic time periods: An IDA (1994) survey found that there were almost 1100 foreign-owned subsidiaries in manufacturing or IDA-supported international services. Ownership of these subsidiaries was spread across 29 different countries, but parent companies from three home countries — the USA, the UK and Germany — owned almost 70 per cent of the subsidiaries.