TNC: Unilever Flashcards
What is Unilever?
Unilever is one of the world’s largest consumer goods companies, producing products like food, beverages, cleaning supplies, and personal care items.
Where is Unilever headquartered?
Unilever’s headquarters are located in London, UK.
How many people does Unilever employ in India?
Unilever employs 21,000 people in India across 29 factories.
What are the advantages of Unilever operating in India?
Unilever creates jobs, improves infrastructure, provides training, introduces new technologies, and supports economic development.
How does Unilever contribute to the Indian economy?
Unilever pays taxes, provides employment, and invests in local supply chains, boosting economic growth.
What is the leakage effect, and how does it relate to Unilever?
The leakage effect occurs when profits made by TNCs in a host country are sent back to their home country instead of being reinvested locally.
What is Project Shakti?
Project Shakti is a women’s empowerment program by Unilever, helping 75,000 rural women start small businesses selling Unilever products.
How does Project Shakti benefit India’s economy?
It increases household incomes, promotes entrepreneurship, and creates a multiplier effect in local communities.
What is the Suvidha initiative?
Unilever’s Suvidha centers provide clean toilets, purified drinking water, and laundry services to low-income households in Mumbai.
What social benefits has Unilever provided in India?
Unilever has helped improve sanitation, women’s empowerment, and local employment opportunities.
How did Unilever contribute to the mercury pollution disaster in India?
Unilever’s thermometer factory in Kodaikanal dumped toxic mercury, harming workers and the environment.
How many employees were affected by the Unilever mercury contamination?
Over 1,000 workers were allegedly affected, with 45 reported deaths and many cases of severe health issues.
What was the outcome of the mercury poisoning scandal?
In 2016, Unilever paid compensation to 591 affected employees, but criticism remains over the long-term damage.
How did the mercury pollution affect the environment?
The pollution contaminated a wildlife sanctuary, affecting native bird species and local ecosystems.
Why are TNCs like Unilever often criticized in developing countries?
They are accused of exploiting workers, causing environmental damage, paying low wages, and prioritizing profits over local development.
How does Unilever impact India’s industrial sector?
Unilever invests in local production, expands supply chains, and increases exports, contributing to industrial growth.
What are the economic drawbacks of Unilever in India?
Profits are often sent back to the UK rather than reinvested in India, and jobs may be relocated if costs rise.
Why are TNC jobs often unreliable?
TNCs like Unilever seek to maximize profits and may move manufacturing to countries with cheaper labor or better tax incentives.
How do TNCs pressure governments?
TNCs can use their economic power to influence government policies, demand tax breaks, or lower labor and environmental standards.
What lessons can be learned from Unilever’s operations in India?
While TNCs bring jobs and investment, stronger regulations are needed to prevent exploitation, pollution, and profit leakage.
