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Examine the mobility of modern economic activities referring to one Multinational Company (MNC) that you have studied. - Leaving Cert Geography - Question B - 2009

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Examine the mobility of modern economic activities referring to one Multinational Company (MNC) that you have studied.

Worked Solution & Example Answer:Examine the mobility of modern economic activities referring to one Multinational Company (MNC) that you have studied. - Leaving Cert Geography - Question B - 2009

Step 1

Naming MNC:

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Answer

The selected Multinational Company for this examination is Unilever.

Step 2

Naming two mobility factors:

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Answer

  1. Globalization of Supply Chains: Unilever has established a global supply chain that enables the efficient movement of goods and services across borders.
  2. Technological Advancements: The use of digital technology facilitates remote operations, allowing Unilever to manage its various production facilities globally.

Step 3

Examination:

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Answer

The mobility of modern economic activities, particularly for Multinational Companies such as Unilever, is heavily influenced by various factors.

Globalization of Supply Chains

Unilever operates on a global scale, sourcing raw materials from different countries and distributing its products worldwide. This globalization allows Unilever to minimize costs and maximize efficiency by locating production in countries where labor and materials are cheaper. For example, Unilever sources palm oil from Southeast Asia and produces goods in regions close to consumer markets, which reduces shipping costs and time.

Technological Advancements

Technological progress has played a pivotal role in enhancing the mobility of economic activities. Unilever utilizes advanced logistics technology, data analytics, and supply chain management software to manage its operations effectively across various regions. Technology allows for real-time monitoring of inventory levels and efficient production scheduling, adapting quickly to market demands.

Additional Considerations

Moreover, Unilever’s ability to adapt to changing regulatory environments and consumer preferences in different regions enables it to maintain competitive advantage. The mobility of its workforce, aided by recent shifts towards remote work, has also increased operational flexibility.

Locations as SRPs

  1. Manufacturing in the Netherlands: Unilever's production facilities in the Netherlands leverage advanced technology and skilled labor to create a variety of consumer goods.
  2. Sourcing in Indonesia: The country is a key source of palm oil for Unilever, essential for many of its products.
  3. Distribution in the USA: Unilever distributes goods from various locations across the USA, enhancing its market presence and availability.

In conclusion, the mobility of Unilever’s economic activities is characterized by strategic global operations, advancements in technology, and adaptive capacity to navigate international markets.

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