1. Evaluate merits & demerits of having the MNC in

1. Evaluate merits & demerits of having the MNC in developing country by analyzing the incident of the case.

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Solve the following case study with your own view regarded to Bhopal Gas Tragedy.

The leakage of 1984 in Bhopal, the capital of Madhya Pradesh state in India, is one of the most tragic industrial disasters of the world. There was the gas leakage from the factory of Union Carbide Co.. a US Multinational Company that produced batteries & such other chemical energy products.

The poisonous gas emissions from the explosion at Union Carbide (An American MNC) killed more than 2000 peoples. Even months after the accident, the death toll of the tragic industrial accident continued to increase. Indian authorities claimed the death toll reached to many thousands. That apart, the affected pregnant women gave birth to babies having numerous physical disorders: thanks to the chemical attack stemming from the gas leakage. With the new breed of children hit by the disaster that has kept reminding them of the catastrophe even after nearly three decades, Indian government & victims of the accident are still pressing hard for adequate compensation from the Union Carbide.

As a result of the Bhopal accident, not only Indian laws were tightened up, but there was a big wave of environmental legislation throughout the industrialized world as well as developing countries. It is another notable development that has influenced the national policy trend that, in turn, has affected the IB activities across the world

The accident had taken place some 28 years ago, but the Bhopal has still been reeling under the effect of the disaster. Even after 2010, there have been public demands in India for compensating the victims & controlling the adverse effect of the gas emission. It may continue to create liabilities to the Union Carbide Co.

Questions:

  1. Evaluate merits & demerits of having the MNC in developing country by analyzing the incident of the case.
  2. Why analyzing the environmental forces is essential for this multinational company to make strategic orientation (placement or location)? Discuss.
  3. Why should the firms like Union Carbide Co. develop contingency plans for their strategic orientation? Explain.
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