Case Study - Unilever

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Case Study - Unilever

Advantages

  • Unilever employs 16 000 people in India.
  • More companies mean a greater income for India. Unilever has annual sales of over $4.5 billion.
  • Development programs such as Project Shakti. Unilever helps 45 000 women in rural areas to become entrepreneurs by providing products to sell and loans.
  • Unilever works with charities to help hygiene education programs - sanitation to 115 million people in India.

Disadvantages

  • Some profits go overseas, for example Unilever is a Dutch-British company.
  • TNCs can cause environmental problems, for example mercury-contaminated glass from a Unilever factory ended up in a waste dump instead of being safely disposed of.
  • Unilever accused of closing factories in Mumbai once tax breaks ended.

Evaluation

TNCs can help economic development by increasing the amount of manufacturing industry and they can bring great benefits to the counties they operate in. However, they also have disadvantages, such as taking advantage of local government incentives such as tax breaks. This means that the jobs created are less secure.

Comments

AmethystJaguar

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Are there any other disadvantages because i'm writing an essay about this and i haven't got enough evidence.

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