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Union Carbide - Dow Chemical Case

Hello, I have a short case with 4 Questions (no's 2-5) that I would like a detailed opinion on. I am not looking for an answer, but rather something to help push me along. I will have to do my own research and support my own position, but I feel I need a push.

1. Why did Union Carbide invest in India?
2. How could Union Carbide have planned for an event such as the accident in Bhopal?
3. How would such planning have improved corporate response to the disaster?
4. What are the implications for Union Carbide being allowed to construct a new plant in Malaysia?
5. Do you feel that Union Carbide has learned from its experience in Bhopal?

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1. Why did Union Carbide invest in India?

The plant in Bhopal was considered to be a major technology transfer project and the government granted an exception for Union Carbide to invest in it for that reason. Union Carbide also already operated 14 other plants in India. It is also generally less expensive to operate a larger plant such as Union Carbide's plants in a foreign country due to the taxes and overhead costs being less costly. Because the Indian subsidiary of Union Carbide was operated by local Indian personnel, the cost to pay the employees was also likely less than that of American personnel.

2. How could Union Carbide have planned for an event such as the accident in Bhopal?

Union Carbide, the Indian subsidiary of the company specifically, did very little to inform its thousands of workers about the toxic products they were working with including the potential health consequences of handling the toxic substances. The company could have planned better for the ...

Solution Summary

The expert examines Union Carbide invest in India. The planning for an event as the accident in Bhopal is given.

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