ABSTRACT
Following a prolonged period of relative economic isolation Ireland opened up its trade to international competition during the 1960s and became a member of the European Economic Community (EEC) in 1973. This meant that the indigenous firms that grew up under the protection of tariff barriers were exposed to international competition. Subsequent initiatives by the European Union, such as the Single European Market (SEM) and European Monetary Union (EMU) have further contributed to the economic integration of Ireland into Europe. Ireland is now one of the most open economies in the world with the sum of imports and exports accounting for about 150 per cent of GDP, although it should be noted that Ireland has particularly strong trading links with non-EU countries and especially the US. In addition to the opening of trade, from the 1960s Ireland pursued an industrial policy focused on attracting foreign direct investment (FDI).
