Which activities are standardized across markets? Which activities are localized to meet market demands and tastes? Why? Evaluate and compare the cost gains from standardization and the market gains from localization.
The choices made by Union Carbide were driven by the outgrowing pesticide market in India. ” The events in Bhopal revealed that expanding industrialization in developing countries without concurrent evolution in safety regulations could have catastrophic consequences “. The disaster is a proof that local problems of industrial hazards and toxic contamination are closely related to global market dynamics. Nothing was made to go around environmental regulations in the U.S., in fact the plant was built in Madhya Pradesh to exploit the large and growing Indian pesticide market.
Lesson Learned ?
Governments should not allow industrial facilities to be located within urban areas. In case of such accidents municipalities and local authorities should make sure that they have the adequate medical facilities to assist a large number of employees in case of mass casualty emergency. Yet, “Public health infrastructure was very weak in Bhopal in 1984.” example: poor quality tap water only available for only a few hours a day, no functioning sewage system, untreated human waste.
No matter how profitable the market looks like, there is a need to take into account existing public health infrastructure when hazardous industries choose to localize their manufacturing plants. Advanced planning should done before any disaster occurs. Locations ” that do not possess infrastructure and technical expertise to respond adequately to such industrial accidents should not be chosen as sites for hazardous industry”.
“National governments and international agencies should focus on widely applicable techniques for corporate responsibility and accident prevention as much in the developing world context as in advanced industrial nations . Specifically, prevention should include risk reduction in plant location and design and safety legislation ”
Source :http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1142333/
