2.3+Unilever+in+Ghana

__**Unilever in Ghana**__

Unilver manufactures in 90 countries around the world. It is a very important investor in Ghana.

__**What are the benefits of this, and for whom?**__ - The multiplier effect for Ghana, when one persons income increases and they spend more which makes more people's income increases therefore it is highly beneficial for Ghana. - Unilver provides many jobs. Even it's management is mostly made up of local people. - By having Unilever Ghana is less dependant on their primary commodity of cocoa.This means they can earn more export revenue. Dependence on Cocoa makes the country vulnerable to changes in supply and demand. The overall price of cocoa has fallen over the last 20 years. Therefore, having manufactured exports is a major advantage. - The tax revenue goes back into the ghanian government and should be distrubuted into Ghana which in turn improves the country as a whole: can be spent on education, infrastructure etc.

__**What are the problems caused by this, and for whom?**__

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- Local firms cannot compete against Unilever due to smaller scale operation .Thus, makes it hard for local firms to grow. However, there are smaller companies that still sell cleaning products in ghana. =====

- Ghana's government does not set high taxes for Univeler because they don't want them to leave so Unilver makes more profit. - The government constructs economic policies with reference to Unilever's corporate strategy. Does this mean the Unilver has too much influence?

__**conclusion:**__ On the one hand, the influence that unilever exerts causes the Ghanaian government to plan their economic policies based on unilever’s activities. Its large size also means that local businesses may be stifled and kept small. However, on the other, unilever provides a wealth of job opportunities, while also training local staff for high level management positions, thereby adding extra skills to the employment pool. They are also one of the largest contributors to Ghana’s tax revenues, and they provide an alternative to an economy reliant on the production of cocoa. For these reasons, A Ghana with unilever is probably preferable to one without.