Unilever and Nestle are facing political and economic challenges in Essay

Unilever and Nestle are facing political and economic challenges in middle eastern and north African countries - Essay Example Financial productivity is the main aim of every financial establishment. For the past several decades, Unilever and Nestle companies have operated on good financial bases. On average, Nestle gets 28% of its finances from European markets, 44% of the revenues from the Americas and 28% from Africa, Oceania and Asia. Likewise, Unilever makes a large portion of its profits from Europe and the United States of America (Nestle 2006, 12). There is relatively low revenue collected by both companies in the Middle East and North African countries. These parts of the world are particularly unproductive for Unilever and Nestle given the political instability in the regions. Governance of countries in the Middle East and North Africa do not encourage Foreign Direct Investment given unpredictable economic policies (Unilever 2013, 32). Given the instability of political environment in North Africa and Middle East, economic situation of the populations around the regions curtails the purchasing power of the inhabitants. A complete essay of this paper will answer the question: How do Unilever and Nestle face political and economic challenges in Middle Eastern and North African countries? It places a hypothesis that economic and political challenges in these regions have negative effects on investment of the two companies in the