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Strategies and power of multinational corporations: A case study of the global dairy sector

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Strategies and power of multinational corporations: A case study of the global dairy sector
Strategies and power of multinational corporations:
A case study of the global dairy sector

MSc Thesis Political Science Annet Hofstra (5833264)

Strategies and power of multinational corporations:
A case study of the global dairy sector

Author Annet Hofstra
Student number 5833264
Discipline International Relations Faculty of Social and Behavioral Sciences University of Amsterdam
Research project Global Politics: Power and Politics at the sub-state level
Supervisor Professor Dr. Jeffrey Harrod
Reader Dr. Robin Pistorius
Date July 2011
TABLE OF CONTENTS

List of tables

Table 2.1 Top 5 production states with EU27
Table 2.2 Top 5 production states without EU27
Table 2.3 Top 10 global dairy companies

Abbreviations
ASEAN Association of Southeast Asian Nations
BRIC Brazil, Russia, India and China
BSN (Boussois souchon Neuvesel).
CEO Chief Executive Officer
CAP Common Agricultural Policy
DFA Dairy Farmers of America
DG Danone Group
EU European Union
FAO Food and Agricultural Organization of the United Nations
FDI Foreign Direct Investment
GNP Gross National Product
HCRS Household contract responsibility system
IPE International Political Economy
IR International Relations
LEI Landbouw Economisch Instituut
M&A merger and acquisition
MNC Multinational Corporation
NRC Nieuwe Rotterdamsche Courant
PRC People’s Republic of China
R&D Research and Development
RFC Royal FrieslandCampina
UNCTAD United Nations Conference on Trade and Development
UHT Ultra High Temperature

Acknowledgements
When I finished by Bachelor study of International Business I gained a good understanding of multinational corporations and their importance, though I merely reviewed their impacts from an economic point of view. The political impact of MNCs aroused my interest and encouraged me to study the Master



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(2005) The state and privatization of the telecommunications sector: Facing uncertainty, Master Thesis, Universiteit van Amsterdam Specialist reports, studies and articles – Online and hardcopy: Beldman A., Daatselaar C., Galama P. and Prins B. (2010) Trends and challenges in world dairy farming, Impressions from the 2009 Global Dairy Farmers congress in China, LEI - Wageningen UR, The Hague Alden C.M and Blayney D Bos. H. , Dooren van K. and Hoogenkamp W. (2010) Groeiende bevolking wil meer vlees en zuivel, Boerderij, Reed Business Publications Buitenhuis R Cox T. and Zhu Y. (2005) Dairy: Assessing World Markets and Policy Reforms: Implications for Developing Countries in: Global Agricultural Trade and Developing Countries, a World Bank report. Datamonitor (2010a) Global Dairy Industry Profile, published in October 2010 p.1-29 ----------------(2010b) Industry Profile, Dairy in China p.1-33 Euromonitor (2011) Besteedbaar jaarinkomen China, retrieved through www.agentschap.nl Food and Agricultural Organization of the United Nations - www.Fao.org Hunt. T, Moynihan H. And Voorbergen M. (2010) The global dairy outlook 2010 Enter the Giants, Rabobank International Food & Agribusiness Research and Advisory Kalish I Lou L. (2006) China’s dairy sector, keeping up with demand growth? Rabobank International F&A Research and Advisory Knips V Osinga K.J. (2011) LTO-Melkmarktbericht februari, uitgave van de Landelijke Land en Tuinbouw Organisatie, Productschap Zuivel (part of ministerie van Economie Landbouw & Innovatie (EL&I)) – milk producing countries www.prodzuivel.nl Nilsson J. and Ohlsson C. (2007) The New Zealand Dairy Cooperatives’ Adaptation to Changing Market Conditions, Journal of rural cooperation, 35(1) p43-70 Pritchard B Pritchard B. & Curtis, R. (2004) “The persistence of national institutions in global commodity chains: Japanese dairy provisioning, the WTO and the Australian connection” Economic Geography 80(2), pp. 173-190. USDA - http://www.usda.gov/wps/portal/usda/usdahome Van der Putten (2003) China, Koninklijk Instituut voor de Tropen (KIT) publishers, Amsterdam Van den Berg A. (2010), Antoon van den Berg wijst op concurrerende kracht van Europa (in boerderij 96, vol.12/13) Voorbergen (2007) Joint ventures in China, Wahaha-haha! The lessons from Danone and HSBC 's troubled partnerships in China source: Economist published on Apr 19th 2007 http://www.economist.com/node/9040416 (2010) The politics of Food Benady A. and Simonian H. (2005) Nestlé 's new flavour of strategy, source: Financial Times, published: February 22nd 2005, http://www.ft.com/intl/cms/s/0/bbda33b4-8477-11d9-ad81-00000e2511c8.html#axzz1RA6rmrf6, accessed on June 6th 2010. Govmonitor (2009) Coca Cola launches its first dairy drink in China, published on October 21th 2009, http://www.thegovmonitor.com/economy/coca-cola-launches-its-first-dairy-drink-in-china-9703.html accessed at July 1st 2011 Juan K Keane J. (2010) Consolidation continues in the global dairy sector, source: Irish Food Board, Published at July 9th 2010, http://www.bordbia.ie/industryservices/alerts/Pages/Consolidationcontinuesintheglobaldairysector.aspx?year=2010&wk=28 Keaten J Lui Ying-Feng (2011) Chinese dairy companies attempt overseas expansion, source: Want China Times, published at April 20th 2011 http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20110420000012&cid=1202&MainCatID=12 accessed at June 4th 2011

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