Innovative Strategies in Servicing International Markets from Ireland

Our understanding of complex networks of production associated with transnational corporations in an increasingly globalised economy is hampered by a reliance on traditional conceptualisations and methodologies based on economic data for distinct sectoral areas of activity mainly confined to separate economies. Multiscalar and relational perspectives provide greater insights into the innovative reconfiguration of value chains associated with the servicing of international markets. This chapter examines these issues within the context of Irelands changing inward investment profile towards a greater involvement in internationally traded services. Irelands foreign direct investment model, based around low corporation taxes and innovative tax strategies, including transfer pricing, is facing considerable competition from lower cost regions, as transnational subsidiaries in internationally traded services such as financial, computer, internet and business services seek to evolve their operations toward more innovative and increasingly global functions.