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Hee-Seon Choi Professor Habte C.

Woldu IMS 3310 003 May 1, 2013 Final Take Home Essay

1. Discuss why the environmental disaster caused by Bhopal Union Carbide chemical plant in India and the BP in the Gulf of Mexico justify that the government should have the responsibility of holding corporation responsible for negligence and unethical business practice locally and internationally. The Bhopal gas leak in 1984 caused by Bhopal Union Carbide chemical plant is one of the most disastrous accidents in the world. In 1969, India allowed the U.S. Carbide Corporation (UCC) to produce pesticides. UCC built its subsidiary plant, Union Carbide India Limited (UCIL), in Bhopal- the capital of the Indian state of Madhya Pradesh. On December 3, 1984, a poisonous gas called methyl isocyanate (MIC) leaked from the Union Carbide pesticide plant. In results, thousands of people were died and injured from this disaster immediately. According to the UCCs report, the safety valve remained open about two hours releasing harmful gases. The plant was clearly not being maintained and operated with the requisite level of efficiency. This is definitely a fault of the company. The company should have constantly checked the status of the plant. In addition, the plant was not properly built originally and the minimal safety standards were not even maintained. I think the UCC did not build their plant in the middle of capital of the state without unmaintained safety tools. This shows that this disaster is caused from the unethical business practice. I do not think that there were not regulations about safety tools for such a hazardous industry. This means that the business practice out of the country was difficult to control in the past. Therefore, the government should engage in setting standardized international and domestic regulations to prevent negligence and unethical business practice locally and internationally. The disaster in Bhopal shed light on the fact that expanding industrialization in developing countries without simultaneous development in safety regulations could have disastrous consequences.

2. Explain how immigration between two countries could be an equalizer of wages and economical for both sending and receiving countries. Relate the question to Mexico and the United States of America and use a graph to

explain. Discuss the challenges of applying the theoretical concept into practice in the short-term and long-term. United States 16 S S S Mexico S

Wa 9 ge 6

10 Wa ge 6 3 7 10 16 Quantity of Labor 4 7 10 Quantity of Labor

Migration from Mexico to the United States is driven by several factors, including poverty, the difference in wages offered in each country, and the existence of family and community network in the U.S. that facilitate the arrival of new immigrants. Mexicans migrants make up the largest segment of the United States immigrant population foreign-born population. Lets see the graphs to find out the impact of immigration. If low-skilled labor is allowed to move freely between the countries, there will be migration from Mexico to the United States up to the point where U.S. and Mexican wages are equalized at 6. We can find out some changes in both countries. Low-skilled wages rises in Mexico and falls in the United States. In addition, the labor supply of the United States expands to 10, and Mexicos contracts to 4. This means output in the United States increases, and decreases in Mexico. The immigrants from Mexico would take the working spots from the blue color workers. Therefore, in the United States, the low-skilled workers loss in income and the high-skilled workers gain in income. And migrants earn income, meaning that U.S. GDP (which includes the income that migrants earn in the United States) rises. In Mexico, native high-skilled workers have an income loss due to the departure of low-skilled labor. Non-migrating low-skilled native workers have an income gain. In the end, Mexico gains in GNP, though it has a loss in GDP. We can see that output and welfare of the United States increases, and decreases in Mexico The other problems that they can have are brain drainthe loss of trained and educated individuals to emigration. In addition, immigration causes cultural problems. As George Schopflin, politics professor at London Universitys School of Slavonic and East European Studies says: Restrictions contradict the ideals of unity. But there are deep cultural fears of being overwhelmed by immigrants from the east.

However, immigration also has positive effects. It has helped to promote economic growth in nations, contributing to housing demand, growth in the construction sector, and expansion in other areas of the economy. Migrant workers also enhance homecountry development by transferring skills and technology when workers return to their home nations.

Work Cited Ball, Donald. International Business. Mcgraw-Hill. 2010. Browning, Jackson. Union Carbide: Disaster at Bhopal. Union Carbide Corporation, 1993. PDF file. Economic Effects of Migration n.d. web. 30 April. 2013 <http://www.globaliza tion101.org/economic-effects-of-migration/> Hanson, Gordon. The Economics Consequences of the International Migration of Labor University of California, 2009. PDF file Wilson, Christopher. Working Together Woodrow Wilson International Center for Scholars, 2011. PDF file