Unilever Tnc Essay

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TNC Case Study – Unilever Background Unilever is a large Anglo-Dutch TNC and is one of the largest industrial companies in the world. It operates in two main areas: food and beverages, and home and personal care. Has headquarters in both Rotterdam and London. Research and Development centres located in the UK, Holland, USA, India and China. It has grown mainly by acquiring other companies. Created in 1930 by the merger of Lever Brothers (UK soap maker) and Margarine Unie (Dutch). Both used palm oil in production, so merger meant economies of scale and use of similar distribution networks. In 2008, Unilever had over 300 manufacturing sites in more than 100 countries across every continent and employed more than 170,000. In 1992 the company employed 120,000 people on its plantations. It established its first plantations in Africa during the 1900s, producing palm oil for the company’s margarine and soap factories in the Netherlands and the UK. Plantation agriculture is capital intensive and requires high levels of technical and managerial skills. Criticisms Has attracted criticism from political activists and environmental groups (e.g. animal testing, mercury contamination, child labour and deforestation). Impacts on Host Country: Positive Impacts | | Employment | FDI generated 700 projects and created 50,000 jobs in the UK in 2007. As this was foreign money, the only cost to the government was where TNCs qualified for subsidies. | Multiplier Effect | Investment can trigger more employment bringing in more wealth to a local economy by: Component manufacturers Distribution companies Service industries (maintaining equipment, catering etc.) Increased trade for local shops and services | Capital | More income for employees will create a demand for more housing, transport and services | New Methods of

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