Are US Corporations on the way out?

Voluntary

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Donald Trump has been elected President of America.
One of his main manifestos is to bring US corporations back to US. He specifically mentioned Ireland as one of the targets.

His plan is to lower the corporate tax rate from 35% to 15%, some form of abolition as well and repatriation of corporate profits held offshore at a one-time tax rate of 10 percent.

It's the second time in the very short period of time when Ireland appears extraordinarily vulnerable to other countries democratic decision (Brexit referendum, US election).

So, are the US corporations on the way out? Can Ireland survive in the new reality which has yet to come?
 


Eire1976

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I'm sure he will start with all the manufacturing jobs in the far east.
 

mossyman

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Equally important will be to see what he will do about the trade agreements that make it easy for US companies to offshore jobs. The Transatlantic Pacific Partnership has yet to be ratified. He will have to tackle really powerful corporate lobby groups to make it harder for US companies offshore. I am sceptical that he will actually do it.
 

FunkyBoogaloo

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Jayzis...

Ireland is a tiny island in a big world. US corporations are going nowhere, yet.

Besides Ireland is too dependent on FDI and non-contributions to our GDP/GNP stats from mncs anyway. Some shake-up of that would be good for us, long term.

Step away from the panic button ffs
 

Franzoni

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Jayzis...

Ireland is a tiny island in a big world. US corporations are going nowhere, yet.

Besides Ireland is too dependent on FDI and non-contributions to our GDP/GNP stats from mncs anyway. Some shake-up of that would be good for us, long term.

Step away from the panic button ffs

100%

we need to start thinking outside the box in regards to MNC's...it's like the over reliance on the boom time receipts for long term public spending....
 

Franzoni

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I'm sure he will start with all the manufacturing jobs in the far east.
I wouldn't be surprised if he started with the US companies who have relocated their manufacturing facilities to Mexico...much easier target to force back across the Rio Grande....
 

Burnout

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I have a life.
100%

we need to start thinking outside the box in regards to MNC's...it's like the over reliance on the boom time receipts for long term public spending....
Not to worry...our brightest CS men will have everything under control.....as soon as they strike for the last of the coppers in the d'old trough.
 

roc_

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I always remember hearing it said to me by Intel executives in the very early days of Intel out in Leixlip that notwithstanding the massive investment in the equipment going into the fabs that if the tax incentive disappeared they would not hesitate to up sticks. Just pull everything out and move it. It wasn't said to me only by one executive either.
 

Burnout

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When you see a convoy of Peterbilt trucks driving into Intel....be afraid.
 

freewillie

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I always remember hearing it said to me by Intel executives in the very early days of Intel out in Leixlip that notwithstanding the massive investment in the equipment going into the fabs that if the tax incentive disappeared they would not hesitate to up sticks. Just pull everything out and move it. It wasn't said to me only by one executive either.
Did you overhear that while you were on the pot?
 

roc_

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Did you overhear that while you were on the pot?
I may have had a fairly low level job at the time, but part of my role was to bring reports on work done to these executives. So I spoke with them. And they were very clear about what I said above.
 

Old Mr Grouser

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I wouldn't be surprised if he started with the US companies who have relocated their manufacturing facilities to Mexico...much easier target to force back across the Rio Grande....
A lot of those jobs that went to Mexico aren't there any more. The US corporations shifted them to China and other Far Eastern countries.

But Mexican businesses permanently lost their protection against imports from the US.
 

Eire1976

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I may have had a fairly low level job at the time, but part of my role was to bring reports on work done to these executives. So I spoke with them. And they were very clear about what I said above.
No internal email?

Surely such reports would be handled by managers of the department.
 

roc_

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No internal email?

Surely such reports would be handled by managers of the department.
Ah and here comes one of the politics.ie's "experts on everything". :roll:

- Irish contractors hardly knew what email was in the beginning of the 90's! Let alone capturing site inspections on hand-held devices or similar. It was all paper! Carbon copy pads. And if getting paid was dependent on said Intel executive having the needed details right in his hand, to sign off on, the best way to do that was have someone carry it to him and put it in his hand!

Things have no doubt moved on since. Both in Intel in Leixlip, and in Irish industry in general.
 
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mossyman

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A lot of those jobs that went to Mexico aren't there any more. The US corporations shifted them to China and other Far Eastern countries.

But Mexican businesses permanently lost their protection against imports from the US.
Exactly. NAFTA was a disaster for Mexican farmers, flooding their market with subsidised products from US agribusiness. Price of Mexican corn fell 60 percent and two million peasants were driven off the land. They had to go to the cities or migrate north. It was bad for Mexican industry too as they couldn't compete with the power and scale of US multinationals. US MNCs simply located their assembly factories across the Mexican border to use cheap labour and then shipped the products back into the US tarriffs free. This was reported as an increase in trade but really these were just intra-firm transfers. NAFTA also made it easier to smuggle drugs into the US and so fuelled the drugs trade, gangs, corruption, trafficking, etc. Terrible deal for nearly everyone except the companies.
 

corporal punishment

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No internal email?

Surely such reports would be handled by managers of the department.
Not really, I started in a MNC in 89 and emails we're hardly used. It was all paper and word of mouth and by the way, we we're told the same thing.
 

Polly Ticks

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I completely agree that Ireland needs to reduce dependence on FDI, but we need jobs to replace those that will be lost and I'd rather make the transition in our own time over the course of a decade or so than be forced into it in the space of 12-24 months.
 

Voluntary

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It may take no more than 12 months for a business to move abroad if manufacturing is involved (see e.g. DELL) or it may take as little as 3 months for a multinational corporation from a time of office closure announcement to the time people are left with no jobs.
 

VHF

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I always remember hearing it said to me by Intel executives in the very early days of Intel out in Leixlip that notwithstanding the massive investment in the equipment going into the fabs that if the tax incentive disappeared they would not hesitate to up sticks. Just pull everything out and move it. It wasn't said to me only by one executive either.
That's business, no mercy. Enterprise Ireland have in my view wrongly created critical dependencies and not enough diversification it's a significant economic risk to the exchequer but that's a function of wrong political strategies and decision making, as per usual.
 

Roberto Jordan

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Ah and here comes one of the politics.ie's "experts on everything". :roll:

- Irish contractors hardly knew what email was in the beginning of the 90's! Let alone capturing site inspections on hand-held devices or similar. It was all paper! Carbon copy pads. And if getting paid was dependent on said Intel executive having the needed details right in his hand, to sign off on, the best way to do that was have someone carry it to him and put it in his hand!

Things have no doubt moved on since. Both in Intel in Leixlip, and in Irish industry in general.
Being a bit of an a$$ here in parsing use of a term but TBF to guys asking questions "executive" in the common understanding of the authority this infers generally reflects only C suite staff and their direct reports. In a MNC of ,say ,200k global employees then this would likely exclude even the site GM in a manufacturing location and , depending upon industry , his or her manager(s). If a big company has , for example, a couple of jets then the only real executives are those who can call on them or get brought along by their boss . A plant lead, for example, in cork or Dublin flies up front on are lingus not in the Lear jet - so doesn't make my cut.

Technically I am an executive ( says the anonymous internet guy) of a large corporate entity. My title , responsibility and business card say so. But in terms of the autonomy and strategic input that the layman expects I am not and neither is my boss or his boss ( but that persons boss -who reports to a c-suite'r is)
Nice to pretend tho!

Anyone "signing off" on work done ain't an executive. They only sign the contract. Minions spend the money
 


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