Unilever Turkey Essay

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UNILEVER TURKEY Table of Contents Introduction2 Effect of Regional Politics2 Effect of Domestic Politics2 Economic Risk3 Financing Alternative For Unilever Turkey3 Foreign Exchange Risk4 Conclusion INTRODUCTION: Political stability is highly significant for trade and commerce in the country. Experts argue that political risk is any threat to the long run profitability of the company’s operations which grows not from the normal economic functioning of a society, but rather from nationalistic discriminatory actions of host countries. (Global Journal of Management and Business, Orok B. Arrey, Vol 13, No 9-A, 2013). The proliferation of multinational corporations (hereinafter referred to as MNCs) began 200 years ago, but they were making only a part of the foreign investment in different countries in the form of portfolio rather than long term greenfield or joint venture investments. (Amirahmadi, H., Wu W., 1994), Foreign Direct Investment in Developing Countries). MNCs have become dominant players in the global economy, while, the most significant concern of MNC’s doing business in developing countries are political risks. Unilever entered in to Turkey in 1950, when the Dutch director Sydney van den Bergh had arrived in Istanbul by accident as his plane developed technical problems, and then noticed how much bread was eaten in the country and thought it would be a good market for margarine (Unilever Overseas). EFFECT OF REGIONAL POLITICS: Turkey has experienced the harmful effects of conflict on its borders more than once. As a country in a region where there are many conflicts, it is mindful of the impact these can have on its internal security. (Ak Parti Official Web Site). The geographical position of Turkey creates a unique benefit among other countries in the region while the political pressures of the region may produce hindrances from time to
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