Assignment:
Describe the “investment risk” that a multinational corporation might face in establishing a plant overseas. What were the risks faced by Union Carbide, a Connecticut-based multinational, in the ownership and operation of its plant in Bhopal, India? At the time the investment was being planned, the government of India had made its restrictions clear: Union Carbide’s Indian plant would have to have Indian joint ownership, Indian engineers and contractors would be responsible for construction, and Indian citizens would manage and operate the plant. For instance, although Union Carbide provided the basic design for the plant, India insisted that its own firms build it. From 1972 to 1980, the construction was supervised by Indian engineers. During that time, the design was changed many times. Labor and employment policies were set by the Indian government. As the court stated, “more than 1,000 Indians were employed at the plant; only one American was employed there and he left in 1982.” The court also notes that plant operations were supervised by more than two dozen Indian government agencies. Evaluate India’s policies in this case. Why did they set such strict conditions? Could Indian policies have contributed to the disaster, or was Union Carbide entirely at fault? Why do you think Union Carbide agreed to the terms of the Indian government?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.