CH26Mindmap

Ch26 Global Business โ€“ Gavin Duffy Business

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๐ŸŒ MNCs
MNC Definition
A business with operations in 2+ countries, managed from home country. E.g. Apple, Google, Meta, Pfizer, Intel.
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Global Business
Treats the world as one marketplace โ€” same or adapted product worldwide. E.g. Coca-Cola, Nike, McDonald's.
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Why MNCs Come to Ireland
Corporation Tax 12.5%
Significantly lower than Germany (30โ€“33%) โ€” major attraction for US tech and pharma.
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IDA Ireland
Grants, advice, market research โ€” actively attracts and supports FDI. Purpose-built business parks.
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Skilled Workforce
High third-level rate โ€” English-speaking graduates in tech, engineering, finance, science.
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EU/EMU Membership
Tariff-free access to 500m+ EU consumers + common currency benefits.
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Spin-off Industries
Ecosystem of service providers already exists around existing MNCs โ€” easier for new ones to set up.
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Benefits of MNCs in Ireland
Direct Employment
250,000+ jobs โ€” well-paid, skilled. E.g. Google, Meta, Pfizer, Intel, J&J.
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Corp Tax Revenue
Billions annually to Irish exchequer โ€” funding public services.
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Spin-off Jobs
MNCs buy from Irish businesses โ€” indirect employment. E.g. McDonald's buys 40,000t Irish beef.
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Skills Development
Irish employees gain world-class training โ€” improving workforce quality.
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Balance of Payments
MNC exports improve Ireland's BOP โ€” pharma and tech exports.
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Challenges of MNCs
Over-Reliance
Ireland too dependent on MNCs for tax and jobs โ€” if they relocate (Dell โ†’ Poland), regions suffer.
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Profit Repatriation
Most profits sent back to home country โ€” not reinvested in Ireland.
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Small Irish Firms
MNCs have massive economies of scale โ€” small Irish firms can't compete on price.
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Lower Tax Take
Tax incentives mean effective rate may be lower than 12.5%.
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๐Ÿ“ฃ Global Marketing
Standardised Mix
Same 4Ps identically worldwide โ€” lower costs, consistent brand. E.g. Coca-Cola.
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Adapted Mix
4Ps changed for local market โ€” language, culture, income, legal. E.g. McDonald's McArabia.
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Global Marketing Mix โ€” 4 Ps
Global Product
Adjusted for technical, legal, language requirements. E.g. left-hand drive; local packaging language.
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Global Price
Adapted for tax, income levels, competition, exchange rates.
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Global Place
Direct export, agents, franchising, alliances. Channels longer globally with more intermediaries.
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Global Promotion
Adapted for language, culture, legislation, media. Social media enables cost-effective global reach.
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๐Ÿ’ป Technology & Globalisation
CAD
Computer Aided Design โ€” faster product design; react quickly to global market changes.
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CAM
Computer Aided Manufacture โ€” computer-controlled production; consistent quality globally.
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EDI
Electronic Data Interchange โ€” cloud storage, automated stock reordering sent globally instantly.
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ISDN
Integrated Services Digital Network โ€” digital transmission via telephone lines; internet/video conferencing.
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Global Marketing Tech
Social media, websites, Amazon โ€” sell directly to global customers without intermediaries.
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๐Ÿ‡ฎ๐Ÿ‡ช Irish Firms in Global Market
Benefits
Increased Sales
Ireland small โ€” global markets dramatically increase sales potential.
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Economies of Scale
Mass production reduces unit costs. E.g. Kerry Group, Glanbia.
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Niche Markets
Irish products target premium global niches. E.g. Irish whiskey, natural skincare.
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New Ideas
Global trading exposes firms to new technologies and competitor innovations.
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Challenges
Intense Competition
International rivalry far more challenging than domestic market.
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Cultural Differences
Products and promotion must be adapted for different cultures and languages.
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Red Tape
Customs, legal requirements, compliance costs vary by country.
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Distribution
Getting goods reliably across global regions โ€” logistics costs, damage risk, delays.
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2025 Q3(B)Outline the global marketing mix for a product of your choice. (20)โ–ผ
Outline the global marketing mix for a product of your choice. (20 marks โ€” 4ร—5(2+2+1) Name, Explain, Reference)
โœ๏ธ Product: Kerrygold Butter
Global Product: Adjusted for technical, legal and language requirements. Kerrygold adapts packaging language and labelling for US, German and Japanese markets. Salt content may be adapted to local taste.
Global Price: Adapted for tax, income levels, exchange rates, competition. Kerrygold is premium-priced but higher in US than Germany due to import tariffs and distribution costs.
Global Place: Direct export and distribution agents. Kerrygold sells through Whole Foods (US) and agents in Asia โ€” longer channels with more intermediaries.
Global Promotion: Adapted for language, culture, media. US campaign emphasises Irish green heritage and "natural" credentials. Social media enables targeted global promotion.
๐Ÿ“Œ MS: 2+2+1 per P. Name the element (2), explain it (2), reference your chosen product (1). Pick one product and apply all four Ps consistently.
2024 Q3(B)Why MNCs locate in Ireland (except tax). (20)โ–ผ
Outline the reasons why multinational companies locate in Ireland, apart from the corporation tax rate. (20 marks)
โœ๏ธ Suggested Answer
IDA Ireland: IDA offers grants, advice, market research and purpose-built business parks โ€” actively attracting and supporting foreign investment in Ireland.
Skilled/educated workforce: Ireland has a high rate of third-level education producing English-speaking graduates in technology, engineering and science โ€” exactly what MNCs need.
EU/EMU membership: Ireland gives MNCs tariff-free access to 500m+ EU consumers and common currency benefits โ€” making it an attractive European base.
Spin-off industries: A thriving ecosystem of service providers has developed around existing MNCs โ€” making it easier for new multinationals to set up and operate in Ireland.
๐Ÿ“Œ "Apart from corporation tax" โ€” do NOT mention the 12.5% rate. If you do, that point earns zero marks. Use the other four reasons.
2024 Q3(C)(i)Standardised vs adapted marketing mix. (10)โ–ผ
Distinguish between the terms standardised marketing mix and adapted marketing mix. (10 marks โ€” 2ร—5(2+3))
โœ๏ธ Suggested Answer
Standardised: Same 4Ps used identically worldwide. Lower costs, consistent global brand. E.g. Coca-Cola โ€” same product, red branding, messaging everywhere.
Adapted: One or more Ps changed for local conditions โ€” culture, language, income, legal. E.g. McDonald's โ€” McArabia in Arab countries, McSpicy Paneer in India.
๐Ÿ“Œ Distinguish = show the difference. Standardised = SAME everywhere; Adapted = CHANGED for local conditions. Both need examples.
2023 Q3(C)Positives & negatives of MNCs in Ireland + examples. (25)โ–ผ
Discuss the positive and negative impacts of MNCs in Ireland. Use examples. (25 marks โ€” 1ร—7 + 3ร—6)
โœ๏ธ Positives
Direct employment: 250,000+ jobs. E.g. Google, Meta, Pfizer, J&J.
Corp tax revenue: Billions annually to exchequer. E.g. Apple, Intel.
Spin-off: Indigenous businesses supply MNCs. E.g. McDonald's buys 40,000t Irish beef.
โœ๏ธ Negatives
Over-reliance: Dell relocated to Poland โ€” regional devastation in Limerick/Shannon.
Profit repatriation: Most profits leave Ireland. Small firms can't compete with MNC economies of scale.
๐Ÿ“Œ Every point must include a named business. Google, Meta, Apple, Intel, Pfizer, Dell, McDonald's, J&J are go-to examples.
2019 Q3(C)Benefits & challenges for Irish firms in the global market. (20)โ–ผ
Discuss the benefits and challenges for an Irish natural skincare business trading globally. (20 marks โ€” at least 1 of each)
โœ๏ธ Benefits
Increased sales: Ireland small โ€” global = massive population access. Asian and European markets huge for Irish natural products.
Economies of scale: Mass production reduces unit costs โ€” improves profitability.
Niche opportunity: Irish origin and natural credentials = premium positioning in Japan, Germany, US.
โœ๏ธ Challenges
Cultural/regulatory differences: Product, packaging, labelling must be adapted per market โ€” increasing costs.
Distribution: Shipping costs, customs, damage risk โ€” challenging for small Irish business with perishable ingredients.
๐Ÿ“Œ Apply points to the named business. Vague generic answers score lower than ones referencing the specific business context (skincare).
๐Ÿ”ฅ HOT Benefits / Challenges for Irish Firms in Global Market
The 2026 workpack lists this as #1 must-know. It was asked in 2023 ABQ(B) (30 marks โ€” benefits/challenges of entering international markets), 2019 Q3(C) (benefits/challenges in global market), and 2016 Q3(B) (challenges of exporting). This topic appears every 2โ€“3 years. Know benefits (increased sales, EoS, niche markets, new ideas) and challenges (intense competition, cultural differences, red tape, distribution costs).
Last: 2023 ABQ, 2019 LQ. Appears every 2โ€“3 years โ€” strong candidate.
๐Ÿ”ฅ HOT Positives / Negatives of MNCs in Ireland with Examples
The second must-know. Asked in 2023 Q3(C) (25 marks), 2024 Q3(B) (why MNCs locate โ€” except tax), 2018 Q3(A) (evaluate opps/challenges), and 2016 Q3(A). This appears every 1โ€“2 years. Know 5 reasons MNCs come (corp tax, IDA, workforce, EU, spin-offs), 5 benefits (employment, tax revenue, spin-off, skills, BOP), and 4 challenges (over-reliance, repatriation, small firms, lower tax take). Named examples are required by the MS.
MNC Qs: 2024, 2023, 2021 SQ, 2018. Near-annual content.
โšก WARM Global Marketing Mix โ€” 4 Ps
The global marketing mix was asked in 2025 Q3(B) (outline for a product of your choice), 2024 Q3(C)(i) (standardised vs adapted), and as ABQ in 2018 and 2013. With 2025 covering the full mix, a repeat is less likely in 2026 โ€” but standardised vs adapted could appear as a short Q, and the 4Ps knowledge underpins any global business answer.
Last full mix Q: 2025. Standardised vs adapted: 2024, 2015.
๐Ÿ“… DUE Technology Facilitating Globalisation
Technology and globalisation was asked in 2020 Q3(C) and 2012 Q3(A). CAD, CAM, EDI, ISDN and global marketing technology (social media, websites, Amazon) are all examinable. With increasing AI and e-commerce relevance, this could return as a modern-framed question in 2026.
Last: 2020 (6 years ago). Due for return with modern framing.
โš ๏ธ No ABQ in Chapter 26
Ch26 is in Unit 7. The ABQ technique does NOT apply. However, the 2023 ABQ(B) covered benefits/challenges of entering international markets โ€” so be prepared for cross-chapter ABQ scenarios involving global business content.
๐Ÿชค The "Apart From Tax" Trap
The 2024 Q3(B) asked why MNCs locate in Ireland "apart from the corporation tax rate". If you mention 12.5% corporation tax, that point earns zero marks. Valid alternatives:
IDA Ireland (grants, advice, business parks)
Skilled workforce (high third-level rate, English-speaking)
EU/EMU membership (500m+ consumers, single currency)
Spin-off industries (existing ecosystem of service providers)
๐ŸŽฏ MNC Questions โ€” Named Examples Required
The 2023 MS explicitly requires named business examples for every point. Keep these ready:
Employment: Google, Meta, Pfizer, Intel, J&J
Tax revenue: Apple, Intel, Meta
Spin-off: McDonald's (40,000t Irish beef annually)
Relocation risk: Dell (moved to Poland โ€” Limerick devastation)
Small firm competition: IKEA vs local Irish furniture makers
๐Ÿ“ฃ Standardised vs Adapted โ€” The Go-To Examples
Standardised: Coca-Cola โ€” same product, same red branding, same core messaging globally. Lower costs, consistent brand.

Adapted: McDonald's โ€” McArabia (Arab countries), McSpicy Paneer (India), Ebi Burger (Japan). Core brand consistent but menu adapted locally.
๐Ÿ”‘ Keywords That Earn the Marks
operations in 2+ countrieshome countryglobal marketplacecorporation tax 12.5%IDA Irelandskilled workforceEU/EMU accessspin-off industries250,000+ jobsprofit repatriationover-relianceeconomies of scalestandardisedadaptedglobal productglobal priceglobal placeglobal promotionCADCAMEDIISDNniche marketdistribution costscultural differences