Geography

Transnational Corporations in India: Unilever

Mr Foster
Geography

Transnational Corporations in India: Unilever

Mr Foster
Transnational Corporations

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 Credit: Wikimedia Commons - The Pancake of Heaven -
Googleplex Headquarters

Transnational corporations
(TNCs) are companies that operate
in more than one country.

They often have their

headquarters in one country,
typically HICs but sometimes
NEEs, and then have primary and
secondary industries in LICs and
NEEs.

Credit: Flickr - Brandon Carson - Oregon’s Nike Headquarters

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 TNCs are vital for the global economy because they generate large amounts of money.
Some TNCs have more money than entire countries.

Credit: Mr Foster

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Unilever in India

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Hindustan Unilever Limited

Credit: Wikimedia Commons - Unilever - Unilever Logo

A major TNC operating in India is Unilever.

Unilever is a UK/ Dutch company that makes consumer goods including

food and drink, as well as cleaning and cosmetic products.

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Hindustan Unilever Limited
Unilever operate in over 100 countries around the world and in 2019 made
a profit of over £46 billion.

The head office of Unilever is in London, UK and the part of the company
that operates in India is known as Hindustan Unilever Limited.

Video Credit: Creative Commons - WinWinCreative - HUL Corporate Video Presentation

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Unilever is a UK/ Dutch TNC

Option 1 Option 2
True

✔
False

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Unilever’s 2019 profits were over £50 billion

Option 1 Option 2
True False

✔
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Advantages Unilever brings to India

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 Unilever provides around 18,000 jobs in India which provide a
reliable income for people to use to improve their quality of
life.

Unilever pays high taxes to the government which can then be

invested in improving levels of development.

Credit: Money and Work icons, Microsoft

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 Unilever also works with charities to set up schemes like Project Shakti.

This involves Unilever training and supporting 120,000 poor rural

women across India in selling Unilever products to generate an income.

This enables these women to use this money to invest in healthcare and
education, improving lives for them and their families.

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Disadvantages Unilever brings to India

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There are concerns that TNCs take
advantage of LICs by polluting
the environment.

Credit: Flickr - Daniel Bachhuber - Waste to the river

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In 2010 Unilever admitted causing mercury pollution in a factory making
thermometers.

Other TNCs are also criticised for providing low pay and poor working
conditions which would not be allowed in HICs, and in some cases can
leave the NEE or LIC if they are unhappy with a country’s regulations.

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 Pause the video to complete your task
Task: Identify the advantages and disadvantages TNCs bring to the NEEs and
LICs they locate in.

TNCs often support charity TNCs may take advantage of

Large numbers of people are
projects for poor people in more relaxed environmental
employed by TNCs.
LICs/ NEEs. laws, causing pollution.

TNCs can leave a country if Jobs in factories in LICs/NEEs

TNCs pay taxes to LIC/NEE
they are not happy with often require long hours in
governments.
regulations. challenging conditions.

Advantages Disadvantages
 Task: Identify the advantages and disadvantages TNCs such as Unilever cause
in NEEs and LICs they locate in.

TNCs often support charity TNCs may take advantage of

Large numbers of people are
projects for poor people in more relaxed environmental
employed by TNCs.
LICs/NEEs. laws, causing pollution.

TNCs can leave a country if Jobs in factories in LICs/NEEs

TNCs pay taxes to LIC/NEE
they are not happy with often require long hours in
governments.
regulations. challenging conditions.

Advantages Disadvantages
Pause the video to complete your task
Main task:

1. Using an example you have studied, Success criteria:

explain one advantage that TNCs
bring to LICs or NEEs. (3 marks)
2. Using an example you have studied,
explain one disadvantage that TNCs
bring to LICs or NEEs. (3 marks)
1. Identify one advantage or
disadvantage Unilever has caused
in India.
2. Explain why this is an advantage
or disadvantage.

3. Double develop your point.

Did you get?
1. Using an example you have studied, explain one advantage that TNCs bring to LICs
or NEEs. (3 marks)

Unilever has benefited India by providing over 18,000 jobs in manufacturing (1).
This means people and their families have a reliable income (1) and this can then be
invested in improving their level of development, through spending on healthcare or
education (1).

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Did you get?
2. Using an example you have studied, explain one disadvantage that TNCs bring to
LICs or NEEs. (3 marks)

Unilever in India have caused environmental damage, admitting to causing

mercury pollution from one of their factories in 2010 (1). This meant that those
exposed in the factory and around it suffered from mercury poisoning (1). As a
result, they faced long term health problems and a significant decline in their
quality of life (1).

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Geography

Transnational Corporations in India: Unilever

Mr Foster