Coca Cola Cost Benefit Analysis

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The major issue here is the problem of water shortage for farming and personal use due to the excessive water usage by large beverage multi-national companies (MNCs) like Coca-Cola. The manufacturing process carried out by MNCs places a huge demand for large quantities of water. In addition to that, they are also the largest customers for sugarcane in India, a crop that requires enormous quantities of water to grow. The end result is the shortage water leading to a drought in Tamil Nadu. Consequently, the local population has decided protest by boycotting Coca-Cola’s products for local brands. This is a classic case of excessive demand for raw materials and a finite supply of water. This has subsequently reduced the food production for…show more content…
1.Consumers they have to decide between enjoying Coca-Cola products and the problems Coca-Cola has brought to the farming community. Consumers would choose to boycott Coca-Cola drinks because the pleasure of drinking Coca-Cola’s products is much lower than the benefit of allowing farmers receive water to irrigate their crops to ensure food supply to the local population. To achieve the highest level of happiness, consumers would be rational enough to help so many more people just by switching to beverages of local brands. 2.The Indian government faces a dilemma of a huge reduction of tax revenue or water shortage in the country. They have to calculate the costs and benefits of shutting down Coca-Cola plants. Perhaps by allowing Coca-Cola to continue its operations, the tax revenue received can be used to build more water plants and improve the water supply for all parties involved. Such MNCs are vital to the economy of India, hence, the government may not shut more plants but perhaps impose some regulations or taxes on the companies. Hence, without shutting the bottling plants down, the tax revenue received be reallocated to other vital areas like social services, healthcare, and…show more content…
Under distributive justice, the MNCs and the Indian government should allocate the water supply and tax revenue to help the farmers and the people who depend on the farmers’ produce. They should design a system to ensure fair distribution of water to the MNCs and the farmers at a sustainable rate to prevent any drought so that all parties get to achieve their goals. Since the damage has been done, there should be a form a compensatory justice where Coca-Cola pays a fine or donates a sizeable amount to the farmers for their loss of income and also purchase food for those affected by the drop in food production so that the affected parties are restored to their original
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