This protectionist approach was seen as necessary to promote industrialisation and economic development, as Ireland was a relatively poor country with a small domestic market and few natural resources. Beginning in the 1960s, Ireland began to move towards a more open and export-oriented economy, with a series of policy reforms aimed at promoting trade and investment.
Attracting these firms provide a range of employment opportunities, advanced technologies, export proficiencies, and management and manufacturing best practice. In recent years, agglomeration, where the successful operation of existing multi-national companies attracts additional investment within the same, or similar, sectors has helped. However, these connections also mean that the Irish economy experiences greater pass-through from developments in the global financial cycle.