Globalisation has benefited Ireland through booming exports and economic growth. Digital businesses, in particular, have been able to scale rapidly without the limitations of borders, with some service companies forging international relationships that have allowed scaling at an exponential level.
Alejandro Gutierrez, chief executive of Npayme Labs, a platform that provides tools for content creators, influencers and agencies to engage and monetise their audience, says his company benefits from a borderless digital economy.
“The rise of social media platforms like TikTok and Instagram, with their global user base, allows us to grow beyond geographic borders, reaching diverse markets without the need for a physical presence,” he says.
“Additionally, working with influencers and creators from different regions has enabled us to tap into varied audience preferences and trends, broadening our appeal across continents. The global reach has also facilitated partnerships with agencies representing creators from the Americas, Europe and beyond, fuelling growth in these regions.”
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Alan Connell, managing partner and head of the tax group at Eversheds Sutherland Ireland, says the law firm has put itself on a global footing to best serve its client needs.
“One example of this is our co-operation arrangement with the leading [legal] firm in Asia – King Wood & Mallesons (China). This gives us access to additional top-level and deep resources in Asia, which is of particular benefit for clients who are doing business in and from Asia,” says Connell.
Globalisation has brought many benefits for companies, such as improved market access, greater access to talent and improved efficiencies and standards driven by competition.
Despite global tax changes, Ireland remains a competitive and attractive jurisdiction to invest in and from which to operate business. However, globalisation is continuing to face several challenges, such as trade tensions with China, the volatility and uncertainty surrounding Russia’s war against Ukraine, the conflict in the Middle East and how the recent US and upcoming Irish elections could impact tax policies, trade agreements and investment incentives.
Gutierrez has witnessed signs of deglobalisation in various ways, particularly with new regulations around data privacy, such as GDPR in Europe, and protectionist policies emerging in multiple countries. These factors create friction for digital-first businesses that thrive on cross-border data exchange.
“Additionally, increasing trade tensions, particularly between major economies, have added complexities for companies relying on global supply chains and there is a noticeable shift towards more localised content and services. Restrictions on platforms like TikTok in certain countries are also indications that the once open digital space is facing new barriers,” he says.
Connell suggests that global trade interconnection is adapting rather than dissolving.
“For example, while economic and trade relationships with China are complex, companies are starting to adjust the terms of their interdependence or derisking, meaning they are finding new ways to maintain and expand commercial ties with China while mitigating supply chain vulnerabilities,” he says.
“Many corporations are shifting from supply chains to supply webs; they are multi-shoring by replacing single sourcing of critical components with multiple – and often geographically diverse – suppliers.
“Another way Irish companies are navigating the challenges is with innovations in technology. Ireland is positioned at the heart of the wider technology-sector ecosystem. At Eversheds Sutherland our technology practice in Ireland is seen as a centre of excellence internationally and our small island is certainly a jurisdiction of choice for large-scale data centre projects. We have seen an increased level of work in this area to support all the technological advances in our lives.”
Gutierrez believes deglobalisation, in its current form, is a temporary shift rather than an irreversible trend.
“The economic and technological benefits of globalisation are deeply embedded in the way businesses operate today,” he says. “While there may be short-term challenges due to trade disputes, protectionist policies and supply-chain disruptions, the digital economy and global digital communities will continue to push for more interconnectedness.
“The need for international co-operation in areas like climate change, technological innovation and digital economies will likely counterbalance these deglobalisation trends over time.”