Question
In at least 50 words can I get a good response to the below. I will right my discussion on Ireland. I choose this country
In at least 50 words can I get a good response to the below.
I will right my discussion on Ireland. I choose this country partially because it is part of my heritage as well as because the company I currently work for used to have a branch office here. This office has since been closed. However, the employees of this office now work from their homes rather than the office.
When a company looks to invest in another country there are many factors they may want to look at and consider before invest. First, they should know rather they are investing in an existing company, or if they are opening an office of some sort in this location. My company for example opened a branch office in Ireland. One of the key things an investor must be aware of when investing in a foreign country is the laws such I financial, marketing, trading, etc.
One key factor should look at is interest rate parity. Interest rate parity as defines by Investopedia is a theory in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate (Investopedia, 2016). This simply says that rather the company invest in either U.S. currency or the currency of the country that the purchasing power should be the same.
According to U.S. News Ireland is listed as the 5th best country to invest in. This is because business decision makers view Irelands tax environment as one of the best in the world, scoring right below Luxembourg and Panama (McPhillips, 2016). Ireland also has corporate tax rate well below the world average. Another reason to invest in Ireland as stated by U.S. News is that Ireland has low taxation policies to help encourage international business development (McPhillips, 2016).
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